Direct PLUS Loans

The PLUS Loan for Parents or Graduate Students is a federal loan that allows parents and graduate students to borrow up to their total cost of education less any financial aid received. The parent or graduate student must pass an independent credit review. The federal PLUS Loan does not factor in debt-to-income ratios in the approval process.  For the 17-18 academic year, the PLUS Loan has a fixed interest rate of 7.0 percent and an origination fee of 4.272 percent.

If you have an adverse credit history, you may still receive a Direct PLUS Loan through one of these two options:

  1. Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay it. If you are a parent borrower, the endorser cannot be the child on whose behalf you are borrowing.

  2. Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history.

PLUS Loan Application Instructions

For more information, go to the PLUS Loan section of the studentloans.gov page.