Direct PLUS Loans Frequently Asked Questions | ACTC

Direct PLUS Loans Frequently Asked Questions

Parents of dependent students and students pursuing graduate or a professional degree can borrow from the PLUS Loan program.

Before a parent of a dependent student can apply for a PLUS Loan, the dependent student must complete a FAFSA. Once the FAFSA has been completed the parent must complete a PLUS Application and Master Promissory Note (MPN). Both steps can be completed at

PLUS applicants must meet the general eligibility requirements for federal student aid. If a parent is borrowing on behalf of a dependent undergraduate student, the student must meet these general eligibility requirements.


  • Be enrolled in a degree seeking program
  • Be enrolled at least half-time (6 credit hours)
  • Must be maintaining Satisfactory Academic Progress

The parent and student must also meet these general eligibility requirements:

  • Be a United States citizen or eligible non-citizen;
  • Not be in default on a federal student loan; and
  • Not owe a refund on a federal education grant.

Yes. A PLUS Loan Applicant must not have an adverse credit history The loan is unsubsidized meaning the borrower is responsible for paying accrued interest beginning with the first disbursement of the PLUS Loan.    

A PLUS Loan has a fixed interest rate of 7.9%

The U.S. Department of Education is the lender for all PLUS Loans.

The maximum PLUS Loan amount that a parent can borrow is the student’s cost of attendance (COA) minus any other financial aid the student receives.

No. A PLUS Loan made to the parent cannot be transferred to the student. The parent is responsible for repaying the loan.

Yes. A 4% fee is deducted at the time of disbursement. Please make sure you are taking this into consideration when deciding on an amount to borrow. 

The repayment period for a Direct PLUS Loan begins when the loan is fully disbursed, and the first payment is due 60 days after the final disbursement. If you are a parent Direct PLUS Loan borrower, you may defer payment of Direct PLUS Loans while the student for whom you obtained the loan is enrolled at least half-time and for an additional six months after the student ceases to be enrolled at least half-time.

ACTC/KCTCS in an equal opportunity employer and education institution

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