Parent PLUS loans
The U.S. Department of Education administers a loan program for students called the Federal Direct Parent (PLUS) Loan. Parents can borrow a PLUS Loan to help pay your education expenses if you are a Dependent, undergraduate student enrolled at least half-time in an eligible program at an eligible school. Parents must be creditworthy.
How much can my parent(s) borrow?
- The annual limit on a Federal Direct Parent (PLUS) Loan is equal to APSU’s Estimated Cost of Attendance minus any other financial aid you receive. For example, if your cost of attendance is $10,000, and you receive $6,000 in other financial aid, your parents can borrow up to $4,000.
What is the interest rate?
- Direct PLUS Loan interest rate is fixed at 7.9%. Interest is charged on a PLUS Loan from the date of the first disbursement until the loan is paid in full.
What are the fees?
- The Direct PLUS Loan program requires a 4.204% fee
- Can more than one parent borrow a PLUS loan on my behalf?
- If a student's parents are divorced, both the custodial and non-custodial may borrow a PLUS loan for their dependent, undergraduate student. A step-parent may only borrow a PLUS loan if they are married to the custodial parent and their financial information was reported on the FAFSA of record.
When do my parent(s) begin repaying the loan?
- The borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or to begin repayment six months after you graduate or cease to be enrolled on at least a half-time basis. Visit www.studentloans.gov for more information.
Steps to applying for the Parent PLUS Loan
The student and the parent must complete the FASFA.
The parent borrower requesting the plus loan will need to go to www.studentloans.gov to verify if their credit will be approved or denied. If approved, parent must complete Austin Peay’s Direct Parent Plus Loan Application. Once completed submit the document to the Office of Student Financial Aid & Veterans Affairs. Parent must also complete a master promissory note at www.studentloans.gov. The promissory note is valid for 10 years, therefore; only first time borrowers will need to complete this requirement.
NOTE: The parent who completes this application must be the parent who completes the Master Promissory Note.
My parent’s credit was denied what are my options?
- Endorser - The borrower can re-apply for a PLUS loan with an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Parent PLUS Loan if the parent does not repay the loan. The PLUS Loan endorser cannot be the student. The endorser will be required to obtain a federal PIN. The endorser will then need to visit www.studentloans.gov to apply to be an endorser for the Parent PLUS loan.
- Appeal - The borrower may appeal the adverse credit decision if they believe extenuating circumstances may exist. Visit www.studentloans.gov for more information.
- Additional Unsubsidized Federal Stafford Loan- Students whose parents are denied a PLUS loan may submit an Additional Unsubsidized Loan Request Due to Parent Plus Denial.
Additional Unsubsidized loan Amounts:
Freshman or Sophomores: Maximum of $4,000 per academic year
Junior or Seniors: Maximum of $5,000 per academic year
- Private (Alternative) Loan - Students may apply for a private (alternative) loan. We encourage private (alternative) loans to be borrowed as a last resort.