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Parent PLUS loans

The U.S. Department of Education administers a loan program called the Federal Direct Parent (PLUS) Loan. Eligible parents may borrow a PLUS Loan to help pay their student's education expenses if the student is a dependent, undergraduate student enrolled at least half-time in an eligible program at an eligible school. Parents must be creditworthy in order to be approved.

PLUS Amount

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 a student's cost of attendance is $10,000, and the student receives $6,000 in other financial aid, the parents can borrow up to $4,000.

Interest Rate

Direct Loan Interest Rates

Aid YearDisbursement DatesParent Plus
2014-2015First Disbursed between July 1, 2014 and June 30, 2015Fixed at 7.21%
2015-2016First Disbursed between July 1, 2015 and June 30, 2016Fixed at 6.84%

You may also review additional Parent Plus loan interest rate information

Origination Fee

The Direct PLUS Loan program requires a 4.292% origination fee, which will be deducted from the approved amount after it is accepted by the parent.

Parents Eligible to Borrow

If a student's parents are divorced, either the custodial or the non-custodial parent 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 if their financial information was reported on the FAFSA of record.


The borrower has the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or six months after the student graduates or ceases to be enrolled on at least a half-time basis. Visit for more information.

Applying for the Parent PLUS Loan

Step 1:

Complete the FAFSA.

Step 2:

The parent borrower requesting the PLUS loan will need to go to to verify if his or her credit will be approved or denied. If approved, the parent can complete Austin Peay’s Direct Parent PLUS Loan Application. Once completed, submit the document to the Office of Student Financial Aid & Veterans Affairs. The parent must also complete a Master Promissory Note.

NOTE: The parent who completes the Parent PLUS application must be the parent who completes the Master Promissory Note.

Options for Credit Denials

  • If you need to contact the Department of Education concerning your denial options, they can be reached at (1-800-557-7394)
  • Endorser - The parent 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 an FSA ID. The endorser will then need to visit 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 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. Students who are eligible for this increase may increase their unsubsidized loans in the following amounts:

Freshman and Sophomores: Maximum of $4,000 per academic year

Junior and Seniors: Maximum of $5,000 per academic year

  • Private (Alternative) Loan - Students may apply for a private loan. We encourage private loans to be borrowed as a last resort.