Direct PLUS Information

What is a Direct Parent PLUS loan?

Direct PLUS loans are offered to eligible parents (as defined by Federal Student Aid for purposes of Title IV) of dependent undergraduate students to assist with educational costs. These loans are based on the applicant’s credit history and are subject to approval by the Department of Education (ED). These loans feature a fixed interest rate.

Is this the only type of loan that is available to dependent students?

No, students can receive Direct Loan funds by completing a FAFSA. Students who apply for Federal Financial Aid will be assessed for eligibility of both grant and loan funding.

Are there borrowing limits to this type of loan?

Yes, the student’s combined awards cannot exceed their Cost of Attendance (COA). Each student is assigned a COA by the college based on many factors such as residency status, cost of tuition, books, scholastic expenses, and the student’s credit hour enrollment for that semester. The maximum amount for all Direct PLUS Loans that may be borrowed by a parent for a dependent student annually is $20,000 and over the course of their undergraduate study is $65,000 per child regardless of any amounts repaid, forgiven, or discharged.

What happens if I am denied a Direct Parent PLUS loan?

There are two options if you are denied. First, you may seek an endorser that can co-sign the loan, which will be completed through studentloans.gov. Second, your child may request additional Federal Direct Unsubsidized loan funds if you do not wish to seek an endorser. You may only use one of these options.

How do I apply for a Direct Parent PLUS loan?

  1. Go to www.studentaid.gov
  2. Log in with your FSA ID, and apply for the PLUS Loan
  3. Complete the PLUS Loan MPN
  4. Submit the signed and completed SCC Direct Parent PLUS Loan Request Form
    1. The student will initiate the PLUS Loan Application by logging in with their MEID and password. The student will be required to add their parent's email address to the form. The parent will receive an email to complete their part of the PLUS Loan Application once the student has submitted their part of the form. Please have your parent check their Spam folder if they cannot locate the email.
    2. Once submitted allow 7-14 days for review of the request, SCC will notify the student and/or parent if additional information is needed.