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Federal Direct PLUS Loans

Direct PLUS Loans are available to graduate or professional students and to parents of dependent undergraduate students to help pay for college costs.​

Are there any borrowing requirements for a Parent PLUS loan?

The One Big Beautiful Bill Act (OBBBA) signed into law on July 4, 2025, established new loan limits for the Direct PLUS Loan Program impacting how much parents can borrow for their eligible dependent undergraduate students. The OBBBA provides a limited exception for certain parent borrowers.

Limited Exception

Eligible Parents: You are a parent borrower who qualifies for the limited exception and is subject to the prior Direct PLUS Loan limits if the dependent undergraduate student on whose behalf you are borrowing the Direct PLUS for:

  • was enrolled in a program of study at an institution as of June 30, 2026,
  • borrowed a Direct Loan for such program of study prior to July 1, 2026, (or you borrowed a Direct PLUS Loan on behalf of the dependent student for such program of study),
  • is currently enrolled at the same institution in the same program of study, and
  • has not stopped their enrollment in the same program at the same institution at any point as of July 1, 2026.

Please note that your student can change majors and you will still remain eligible for the limited exception. The student changing credential level will cause you to lose eligibility for the limited exception.
If you are a parent borrower who qualifies for this limited exception, for each academic year you may borrow up to—but not more than—the amount of your student’s estimated cost of attendance minus the amount of any other financial aid received for that academic year. The school determines the cost of attendance using federal guidelines.

Ineligible Parents: If you are a parent borrower who does not qualify for the limited exception, Direct PLUS Loans have an annual loan limit (the maximum amount you can borrow each academic year) and an aggregate loan limit (the maximum loan amount you can borrow for each dependent student’s undergraduate study).

For each academic year beginning on or after July 1, 2026, the maximum amount of all Direct PLUS Loans that may be borrowed by all parents (not each parent) on behalf of each dependent student may not exceed $20,000. The maximum aggregate amount that all parents may borrow through Direct PLUS Loans on behalf of a dependent student during a student’s undergraduate education is $65,000 per child regardless of any amounts repaid, forgiven, or discharged.

*These limits apply regardless of the student’s cost of attendance unless the parent qualifies for the limited exception described above.

NOTE:  The school can refuse to certify your parents’ loan application or can certify a loan for an amount less than they would otherwise be eligible for, if the school documents the reason for its action and explains the reason to your parents in writing.

Are there new requirements for the GRAD PLUS loan?

Starting July 1, 2026, Direct PLUS Loans are no longer available to graduate or professional students unless you qualify for the limited exception. To qualify, you must have been enrolled in your program of study as of June 30, 2026, borrowed a Direct Loan for that program prior to July 1, 2026, and remain continuously enrolled in the same program at the same school.

Direct Unsubsidized Loans remain available to eligible graduate and professional students with updated loan amount limits.

  • Graduate students (never professional): up to $20,500 annually; $100,000 aggregate.
  • Graduate students who previously borrowed as professional students: $20,500 annually; $200,000 aggregate (less prior professional borrowing).
  • Professional students: $50,000 annually; $200,000 aggregate (less prior graduate borrowing).
  • Lifetime aggregate limit: $257,500.  Learn more about the annual and aggregate loan amount limits.
What is the interest rate on PLUS ​​Loans?

Direct PLUS loans first disbursed on or after July 1, 2026, and before July 1, 2027, the interest rate is 9.07%.  This is a fixed interest rate for the life of the loan.  Interest rates are set annually by federal law. 

For more information visit the Department of Education’s Federal Student Aid site; Parent PLUS Loans | Federal Student Aid.

How are PLUS Loan funds disbursed?

For a Direct PLUS Loan, the U.S. Department of Education will send the loan funds to your school. In most cases, the loan will be disbursed in at least two installments (no installment can be greater than half the loan amount).
The funds will first be used to pay for your tuition and fees, room and board, and other school charges. If any loan money remains, your parents will receive the amount in a check, unless they authorize it to be released to you or to be put in your school account. Any remaining loan money must be used for your education expenses.

Will my parent and I be able to cancel a PLUS loan after applying?

Yes.  The school is required to notify your parents in writing whenever a loan disbursement is made. This notification must be sent to your parents no earlier than 30 days before and no later than 30 days after the school credits your student account.
You (as a graduate/professional student) or your parent may cancel all or a portion of the loan by informing the school.  This must happen within 14 days following the date your school sends the notice or by the first day of the payment period, whichever is later.
Your school can tell you the first day of your payment period. If your parent receives PLUS Loan funds directly by check, they may refuse the funds by not endorsing the check.

Is there any other charge for a PLUS Loan, beyond interest?

Yes, there is a loan origination fee on all Direct PLUS Loans. The loan origination fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage for all Direct PLUS loans first disbursed on or after Oct. 1, 2020, is 4.228%. Loans first disbursed before that date had different loan fees.  Loan fees are established by federal law and may change for future disbursements.

When do my parents begin repaying a PLUS Loan?

Generally, repayment begins 60 days after the loan is fully disbursed. Parents may request a deferment for up to 6-months after the student graduates, withdraws, or drops below half-time enrollment.  For Grad PLUS borrowers, this 6-month deferment is automatic.

Is it ever possible to postpone repayment of a PLUS Loan?

Yes. Under certain circumstances, your parents can receive a deferment or forbearance on their loan. Generally, the conditions for eligibility and procedures for requesting a deferment or forbearance that apply to student Direct Loans also apply to PLUS Loans. However, since all PLUS Loans are unsubsidized, your parents will be charged interest during periods of deferment or forbearance. If they do not pay the interest as it accrues, it will be capitalized.

For more information on deferment, view the Deferment and Forbearance tab here, Parent PLUS Loans | Federal Student Aid.

Can the loan be forgiven or discharged?

Under certain conditions, you or your parent may be eligible to have all or part of your loan forgiven (canceled) or discharged. Find out about loan forgiveness, cancellation, and discharge.
The loan cannot be discharged simply because:  you didn’t complete the program (unless you were unable to complete the program because the school closed), didn’t like the school or the program of study, or did not obtain employment after completing the program of study.

How can my parents apply for a Direct PLUS Loan?

Your parents must fill out an application; Apply for a Direct PLUS Loan as a Parent | Federal Student Aid and complete the Direct PLUS Loan Master Promissory Note; Completing a Master Promissory Note | Federal Student Aid.

Do I need to find a lender?

No. Under the Direct PLUS Loan program, the lender will be the U.S. Department of Education.  Your school assists the federal government in administering the Direct PLUS Loan Program by distributing the loan application, processing the loan, and disbursing the loan funds.  Once the first loan disbursement is made, a loan servicer will be assigned to the loan.  A loan servicer is a company assigned by the U.S. Department of Education to manage federal student loans, and Direct PLUS loans. They are your main point of contact for anything related to repayment, deferment, forbearance, or forgiveness.

How do we pay back a PLUS loan?

Your parents can choose the Standard, Extended, or Graduated Repayment Plan.  They should reach out to the loan servicer who has been assigned to their loan if they need assistance.  Visit Parent PLUS Loans | Federal Student Aid. for more information about options for repaying a Direct Loan.