Federal Direct Parent PLUS Loan

Steps to apply for the 2014-2015 year:

What is a Direct Parent PLUS loan?

The Federal Direct Parent PLUS Loan is a low-interest loan that allows a parent of a dependent undergraduate student to borrow a federal loan to assist in paying for the student’s college education. The parent applicant must pass a credit check as part of the application process.

The Federal Loan Origination Applicant Services (LOAS) center will conduct a credit check on the Parent PLUS loan applicant. If the applicant is 90 or more days delinquent on any debt, has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a debt under title IV of the Act during the five years preceding the date of the credit report, the Parent PLUS loan will be denied. The LOAS will issue a loan denial letter to the applicant that will identify the name and telephone number of the agency who provided the credit information. The applicant should call the agency and request a copy of the credit report. After reviewing the report, if the credit data is inaccurate, the loan denial decision may be appealed.

Please note that our office is not provided any information about the specific reason for the denial. All loan denial appeals are handled by the LOAS. The LOAS may be contacted at 800-557-7394, or you may write to the Direct Loan Origination Center at: Applicant Services, PO Box 5691, Montgomery, AL 36103-5691.

If the denial decision was based on accurate information, the applicant has the option to obtain an endorser, which is similar to a co-signer, on the loan. The LOAS will include an Endorser Promissory Note and information with the denial letter mailed to borrower.
When the LOAS center notifies our office of the loan denial, we will send out a PLUS Loan denial form to the parent applicant. The purpose of this form is to provide options for the applicant to officially communicate to our office exactly what he/she plans to do about the denial. We will not cancel the application until we receive the form.

What is the interest rate and fees?

  • For loans first disbursed between 7/1/2013-6/30/2014 the interest rate is 6.41%. For loans first disbursed between 7/1/2014-6/30/2015 the interest rate is 7.22%.
  • Beginning October 1st, 2014 Federal Direct Lending will deduct a 4.292% fee on new Federal Direct Parent PLUS Loans.

Repayment begins 60 days after the final disbursement for loans disbursed prior to July 1, 2008. For PLUS loans made to parents that are first disbursed on or after July 1, 2008, the borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis.

A parent of an undergraduate can borrow up to the cost of attendance minus other aid and resources.

Student must be enrolled at least half-time, for specific information on enrollment please read KUMC's Enrollment Information.

For more information, contact the Department of Student Financial Aid, (913) 588-5170 or email financialaid@kumc.edu.

Last modified: Apr 21, 2015