Federal Direct PLUS loans for Parents and Graduate Students

Application Process

  • The parent borrower submits the PLUS loan application at http://www.StudentLoans.gov.
  • The federal loan processing center will review borrower’s credit history to determine eligibility.
  • Once the PLUS loan has been approved, the parent will be instructed to sign a “Master Application and Promissory Note at http://www.StudentLoans.gov.
  • The Office of Scholarships & Financial Aid will originate the parent PLUS loan.
  • Loan proceeds will be used to offset authorized charges on the student’s billing account in the University Cashier’s Office.
  • If there are remaining funds available after the authorized charges are paid, a refund may be used toward the student’s non-billed costs (ex. off-campus housing, etc). Students are encouraged to designate a checking account for refunds by signing up for Direct Deposit. Parent PLUS loan borrowers who want access to any refunded PLUS loan proceeds should encourage the student to sign up for Direct Deposit with a checking account shared with or owned by the Parent PLUS loan borrower.

PLUS Loan Basics

Parents of a dependent undergraduate student may apply for a Federal Direct PLUS loan to help meet the student’s cost of attendance not covered by other financial aid.  Interest rates and repayment provisions on PLUS loans are generally more favorable than other consumer loans available for educational expenses. Complete the FAFSA prior to applying for the Plus loan online at studentloans.gov.

Credit History

Parents are required to pass a credit check when they are applying for the PLUS loan. If a parent’s application for a PLUS loan is denied based on the borrower’s credit history, the student may become eligible for an additional unsubsidized student loan. Freshmen and sophomore students can borrow up to $4000 in a Federal Direct loan, while juniors and seniors could borrow up to $5000.

PLUS loans for Graduate Students

The Federal Graduate PLUS Loan is a Federal loan program which allows Graduate and Professional students to borrow a low interest federally backed student loan when Federal Direct Loan eligibility has been exhausted. Like the Parent PLUS Loan, the Graduate PLUS Loan can be used to pay for the total cost of attendance minus any financial aid you’ve already been awarded. Also like the Parent PLUS Loan, eligibility for the Graduate PLUS Loan is largely dependent on the borrower’s credit rating and history. There is no form to submit to NC State; students should go to https://StudentLoans.gov to complete thePLUS Request Process/Master Promissory Note and Entrance Loan Counseling.

Interest Rates

Federal Direct PLUS loans have a fixed interest rate of 7.21%. Interest is charged from the date of disbursement until the loan is paid in full.


Contact applicant services for assistance by calling 1.800.557.7394 or FAQ.