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.
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.
Direct Loan Interest Rates
|Aid Year||Disbursement Dates||Parent Plus|
|2014-2015||First Disbursed between July 1, 2014 and June 30, 2015||Fixed at 7.21%|
|2015-2016||First Disbursed between July 1, 2015 and June 30, 2016||Fixed at 6.84%|
You may also review additional Parent Plus loan interest rate information
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.
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 StudentLoans.gov for more information.
Complete the FAFSA.
The parent borrower requesting the PLUS loan will need to go to StudentLoans.gov 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.
Freshman and Sophomores: Maximum of $4,000 per academic year
Junior and Seniors: Maximum of $5,000 per academic year