Direct Parent PLUS Loan
FIT participates in the William D Ford Federal Direct Loan Program. The funds for the Federal Direct Parent Loan for Undergraduate Students (Parent PLUS) come directly from the Federal Department of Education. PLUS loans, which are federally regulated, are usually more beneficial and recommended over most private/alternative student loans.
Parents with good credit histories may borrow up to the cost of attendance (COA) less other financial aid for their dependent undergraduate students who are enrolled in an undergraduate degree-granting program at least half-time. Credit checks are performed by the Department of Education.
Academic Year 2021 - 2022 Interest Rate
The fixed interest rate is 6.28% for Federal Direct PLUS Loans disbursed between July 1, 2021 and June 30, 2022. There is also an origination fee of 4.236% (for loans disbursed before October 1, 2022) charged by the Department of Education.
- You must be a biological or adoptive or step-parent whose information is on the students FAFSA.
- You must be a U.S. citizen or an eligible non-citizen.
- The dependent student must be admitted into an undergraduate degree program and, for new students, the tuition deposit must be paid.
- A FAFSA must be completed for the school year. You will need an FSA ID to complete the FAFSA electronically.
- Your student must enroll in at least six credit hours per term in a degree program to maintain eligibility.
1. Decide how much to borrow. Students can determine the loan limits by logging in to MyFIT.
- Go to FIT Applicant or Student TAB
- Under Financial Aid Resources go to My Financial Aid Checklist
- Click on Award by Aid Year on the drop down choose the Academic Year
- Select the appropriate Academic Year.
- Click on the Award Overview Tab to you will see the total Cost of Attendance (COA)
To determine the full annual limit that parents can borrow for the PLUS loan, subtract the financial aid awarded to the student from the student's cost of attendance (COA).
You do not not have to apply for the entire amount. You will be billed for direct expenses only (tuition, fees, and FIT housing and meal plans). Other costs are estimated expenses and will vary. NOTE: You will not receive the full amount requested due to a loan origination fee of 4.228% which is charged by the Department of Education.
2. Determine the loan period. We suggest that you request the loan to cover the full academic year. If you request the PLUS loan for the full year, half of the loan will be disbursed in the fall and the other half will be disbursed in the spring. Repayment and interest will apply to funds only after they are disbursed.
3. Decide whether you want FIT to pay any credit balance (for reimbursement or indirect costs: books, transportation, etc.) to your student or to you.
4. Decide when you want to begin repayment. Request a deferment while the student is in school or begin repaying 60 days after disbursement. If you wants to defer repayment of the Parent PLUS loan, request "Deferment While Student is in School" while completing the Parent PLUS application. Request an additional deferment for 6 months after the student ceases to be enrolled at least half time.
Apply for a Direct Parent PLUS Loan
Be sure to carefully review all information on this page before applying.
1. The parent borrower should log into Federal Student Aid with the parent's personal information and FSA ID. We suggest that the parent with the best credit history apply for the loan. If your PLUS loan is denied, you may add the other parent, or someone else, as an endorser/cosigner.
2. Under Apply for Aid, click on Apply for Parent PLUS Loan. Read the information, view what you will need, and follow the instructions.
4. Complete the Annual Student Loan Acknowledgment requirement. Starting in the 2021-2022 school year, borrowers of PLUS loans will be required to complete an Annual Student Loan Acknowledgment before receiving loan disbursements. The Annual Student Loan Acknowledgment is an online session that allows students and parents to see how much they have borrowed, preview what their monthly payments might be, and explain concepts such as capitalization and the difference between federal and private loans. The goal is to help you understand how your loans affect your financial future.
Frequently Asked Questions
You will be notified immediately of the credit check status. The student will receive an email and an updated Financial Aid Award letter displaying the amount for which the PLUS loan has been certified. The loan will NOT disburse until the parent borrower has completed the Parent PLUS Master Promissory Note (MPN) and PLUS Credit Counseling - if the loan was originally denied.
If your PLUS loan is denied, you have the following options:
a. You may appeal the credit decision by contacting Direct Loan Originations at (800) 557-7394 option 3.
b. You may add your spouse, or someone else, as an endorser/cosigner. The parent will be sent a paper application for the endorser or the endorser can complete the Endorse a Direct PLUS Loan online. To complete the application online, the endorser will need:
- The loan's reference or award ID number which you should receive when you apply
- To get an FSA ID
If your appeal or endorser is approved, you will need to complete online PLUS Counseling in addition to a new Parent PLUS Master Promissory Note (MPN). The PLUS MPN may be completed online. If EITHER of these requirements are not met, your loan will not disburse.
If you do not have an endorser/cosigner, students of parents who are denied the PLUS Loan may apply for an additional Federal Direct Stafford Unsubsidized loan. The student may apply for the additional Federal Direct Stafford Unsubsidized Loan of $4,000 as a freshman or sophomore, or $5,000 as a junior or senior for the academic year. A Direct Stafford Loan Request for the additional Federal Direct Stafford Unsubsidized loan may be downloaded or requested from Financial Aid Services.
We electronically receive confirmation of your loan from the Department of Education. We determine the amount of PLUS funds for which you are eligible and send that information to the Department of Education. If this is the parent's first Federal Direct PLUS Loan or if the parent will be using an Endorser/cosigner, the parent must complete a Parent PLUS Master Promissory Note (MPN). The parent can complete an electronic MPN online. Repayment for loans borrowed begins 60 days after the loan is disbursed with a repayment term of 10 years. Repayment can be deferred upon request. You may choose to defer repayment while completing the Parent PLUS application, or contact our office if you would like to receive an In-School Deferment Request form.
Federal Direct PLUS funds are sent directly to the school. The online application gives the parent the option of having funds in excess of what is owed to FIT be given to the student or returned to the parent. The parent may also notify the Bursars Office of this decision in writing.