Direct Parent Plus Loan

PLUS Loans are federal loans that parents of dependent undergraduate students may borrow to help pay their child's education expenses. The lender is the U.S. Department of Education.

The FAFSA serves as the application for the Parent PLUS Loan, however there are additional requirements that must be met in order for the parent to be eligible...

  • The parent borrower must be the biological or adoptive parent of the dependent student. Generally a student is considered dependent if s/he is under 24 years of age, is not married, and has no dependents

  • The parent must not have an adverse credit history. A credit check will be run, the consent form will be included in the student’s award letter

  • The parent and student must be U.S. citizens or eligible non-citizens

  • The student must be enrolled at least part time (6 or more credits)

  • Sign a Master Promissory Note (MPN) agreeing to the terms and conditions of the loan.

The annual limit on a PLUS Loan is equal to the student's cost of attendance minus any other financial aid the student receives. For example, if the cost of attendance is $6,000 and the student receives $4,000 in other financial aid, the student's parent can request up to $2,000 in PLUS Loan funds.

Upon disbursement, NYSID will automatically apply the loan funds to the student's account to cover tuition, fees, housing, and other school charges. If any funds remain, the parent will receive that amount in the form of a refund check. Loan refunds must only be used for the student's education expenses.

Parent PLUS Loans enter repayment once the loan is fully paid out. You can find more information on repayment here.

For more information on Parent PLUS Loans including interest rates and origination fees and answers to frequently asked questions, please visit the U.S. Department of Education's website here.