PLUS Loans

Parent PLUS for Parents of Dependent Students and Grad PLUS for Graduate Students

The interest rate on a PLUS loan that first disburses on or after 7/1/15 and before 7/1/16 is fixed at 6.84%. The loan origination fee for Direct PLUS loans first disbursed on or after 10/1/15 and before 10/1/16 is 4.272%. The interest rate on a PLUS loan that first disburses on or after 7/1/16 and before 7/1/17 is fixed at 6.31%. The loan origination fee for Direct PLUS loans first disbursed on or after 10/1/16 and before 10/1/17 is 4.276%.  The fee will be proportionately deducted automatically by the federal government from each loan disbursement. Interest is charged from the date of the first disbursement until the loan is paid in full. Repayment of principal and interest begins within 60 days after date the loan is fully disbursed unless an authorized deferment of principal is granted by the lender to the borrower. There is a check box on the promissory note for the deferment while the student is enrolled. Check with your lender about deferment of payments while the student is in school.

This program has some great advantages over other forms of educational financing such as second mortgages for education or private loans.

  • Parent Plus: The Federal Direct Parent PLUS Program provides loans to parents or stepparents of eligible dependent students who need additional financial assistance in meeting post secondary educational expenses. Eligibility is not based on income. The parent borrower must not have an adverse credit history (a credit check will be done by Direct Loans). This program is intended to supplement the Federal Stafford Loan Program. Parents may borrow a maximum of the cost of education (tuition, books, room & board, and personal expenses) less other forms of financial aid.
  • Grad Plus: The GRAD PLUS Loan Program for the approaching academic year is up to their cost of attendance minus other estimated financial assistance. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate PLUS loans. These requirements include a determination that the applicant does not have an adverse credit history (a credit check will be done by Direct Loans), repayment beginning on the date of the last disbursement of the loan. The loan will be proportionately deducted automatically by the federal government from each loan disbursement. Interest is charged from the date of the first disbursement until the loan is paid in full. Lenders will defer repayment while student is in school. Applicants must complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Direct Unsubsidized Stafford Loan Program before applying for a Grad PLUS Loan. 

    Graduate students will need to complete a Troy University Grad PLUS Application below.

Direct Loans will approve or deny a PLUS loan based on credit. Direct Loans will notify you by letter or email, if the loan is approved or denied. It is the borrower’s responsibility to determine if their credit was approved or not.

Application Procedures - Parents/Students must apply each year. You must have your loan application processed through Troy University. If the PLUS loan is approved, you will need to complete a Master Promissory Note (MPN) at the Federal Direct Student Loans website: https://studentloans.gov

You cannot process a Pre-Approval through the Federal Direct Student Loan program, you must process your loan request through Troy University. We only acknowledge PLUS denials that are initiated by a PLUS application through us.

  • Completing the FAFSA is required with parent/student information for the appropriate year.
  • The student must complete the Financial Aid Certification Form for the appropriate year (see Forms/Documents).
  • Complete a Parent/Grad PLUS Loan Request Form for the appropriate year.
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