Parent Loan for Undergraduate Students (PLUS)

Who qualifies?

  • Parents

Qualifications

Important!  Please read the information on this page before clicking on the PLUS online application link at the bottom of the page

  • Parent borrower must not be in default on a federal loan.
  • Parent borrower must be a biological or adoptive parent or a stepparent.
  • Student must file a Free Application for Federal Student Aid (FAFSA).
  • A parent not included on the FAFSA is eligible for the Parent PLUS Loan.
  • Student must be enrolled at least half time.
  • Parent borrowers must pass a credit check; if denied the following options are available:

          Obtain a credit-worthy endorser (co-signer)

          Appeal the denial

          The student may borrow additional funds from the unsubsidized FFDL program

  • Approval of the Parent PLUS Loan is based strictly on your credit rating.  It does not factor in debt-to-income ratio.  Therefore, the amount you request to borrow is not a reason for denial.

Maximum amount

In most cases, the parent is eligible to borrow up to the cost of attendance minus any other financial aid the student receives.

Promissory note

The Department of Education uses a master promissory note (MPN), which serves as a multi-year note for each parent-student combination.

As long as the parent borrower and the dependent student do not change, a new PLUS MPN is not required on subsequent loans. This is not the case if your Parent PLUS loan was approved because you obtained an endorser.

Additional information

Fee

When the loan is disbursed, the Department of Education calculates a 4.264 percent processing fee for loans disbursed after October 1, 2017 and before October 1, 2018.

 Interest

  • Fixed interest rate of 7.6 percent for loans disbursed between July 1, 2018 and June 30, 2019.
  • Interest begins to accrue as soon as the loan is disbursed.

Disbursement of funds

PLUS funds are sent to the University of Missouri by the lender. The loan may be disbursed in two installments. Funds are first credited to the student's MU account to pay any balance due for tuition, fees, housing, meals and other school charges. Extra funds are returned to the borrower. A parent borrower may authorize the refund to be released to the student by indicating so on the Parent PLUS application.

Repayment

After your loan is fully disbursed, it will be assigned to a federal loan servicer. The servicer is who you will send payments to.

Your loan payments begin 60 days after your loan is fully disbursed. For example, if you borrow a loan for fall and spring semesters, our last disbursement would be in January (for the spring semester).  Payments would begin in March.  You can use a loan calculator to determine your estimated loan repayment. If you want to defer payments, contact your loan servicer.

You will get correspondence from your servicer once your loan has been assigned.  You may also find them by logging into the National Student Loan Data System (NSLDS) using your federal id log in https://www.nslds.ed.gov/nslds/nslds_SA/.

PLUS Counseling

PLUS Counseling is required if you initially do not pass a credit check but are approved because you obtain a co-signer or you appeal your denial and submit supporting documentation.

Completing the online application (IMPORTANT!)

Please note: The Fall 2018 through Spring 2019 Federal Direct PLUS loan application will not be available until April 3, 2018.

  • MU utilizes the Department of Education’s Parent PLUS request process.  The web link below will take you to the Department of Education’s student loan website.  Once you submit the application, you will know immediately whether your loan was approved or denied.
  • You (the parent) will need a Federal Student Aid ID (FSA ID) to apply for a PLUS loan.  If you did not already obtain one to sign the FAFSA form, you may request one at https://fsaid.ed.gov.  If you have an FSA ID, but cannot remember it, you may use this website to retrieve it.
  • Once you have your FSA ID and password, navigate to the link below and click on the LogIn Button located in the upper right hand corner.
  • Enter your personal information and click the LogIn button.
  • If you are successful at logging in, you will see a page titled Welcome to StudentLoans.gov.  Your personal information will be located on the right hand side of the screen.
  • Click on the link "Apply for a Direct PLUS loan".
  • Under the heading "Select the type of Direct PLUS Loan Application you would like to complete, click Start next to "Direct PLUS Loan Application for Parents".
  • Complete the application and submit it.  A message will appear on the screen indicating whether you have been approved or denied.
  • Once you have submitted the application, the MU Financial Aid Office will be notified within 2 business.

Application 

To apply for a Parent PLUS loan, click on Parent PLUS Online Applicationexternal link and follow the instructions below.

Instructions:

  • You are directed to the federal loan website, https://studentloans.gov
  • In the upper right of the screen, click on the LogIn button
  • You (the parent) must sign in using your FSA ID
  • Click on Apply for a Direct PLUS Loan

        Fall 2018 and Spring 2019 Loan Instructions

  • At the top of the Application in the Award Year box, select 2018-2019
  • At the bottom of the first page there is a section titled Loan Period - Select the months you want to borrow the loan for

    Fall 2018 and Spring 2019 loan = August 2018 loan begin date and May 2019 loan end date 

    Fall only loan = August 2018 begin date and December 2018 end date

 Summer 2018 Loan Application Instructions

  • At the top of the Application in the Award Year box, select 2017-2018
  • At the bottom of the first page there is a section titled loan Period - Select the months you want to borrow the loan for

            Summer 2018 = June 2018 begin date and July 2018 loan end date