PLUS Loan for Undergraduates
Federal Direct PLUS Loans for Parents of Dependent Undergraduates
The PLUS loan is designed for parents. You can apply for a PLUS loan only if you are the parent of a dependent student. A credit review is part of the approval process. If you are denied a PLUS loan, your son or daughter can apply for an unsubsidized loan in his or her own name.
The One Big Beautiful Bill Act passed in July 2025 included some changes for new Parent PLUS borrowers that are expected to go into effect with the 2026-2027 academic year:
- For new borrowers after July 1, 2026, Parent PLUS loans will be capped at $20,000 per student per year. The lifetime limit will be $65,000 per student.
- There is a legacy provision for existing Parent PLUS borrowers to continue with the current limits for three more years or until the student’s program ends.
This information reflects our good faith understanding of evolving federal loan regulations. It is not an official or binding statement of policy and is subject to change once official guidance is available. Students are encouraged to consult studentaid.gov for federal government resources and publications for official guidance.
The information below relates to the 2025-2026 academic year and will be updated for 2026-2027 once we have received official guidance.
PLUS Loan Application Requirements
You can apply for a PLUS loan if:
- Your son or daughter attends at least half-time (6 hours).
- You have good credit history. (Parents with weak credit may be eligible with a credit-worthy co-borrower or by documenting extenuating circumstances.)
- You have completed the FAFSA.
Direct PLUS Loan Application Process
Applying for a Direct PLUS Loan is a two-step process.
- Parent first completes a Federal Direct PLUS Loan Application for Parents online. The U.S. Department of Education will complete a credit check. UHCL will receive your online application and credit decision within a week.
- If approved, parent must also complete a Direct PLUS Loan Master Promissory Note (PLUS MPN for Parents). The MPN explains all of the terms and conditions of Direct PLUS Loans and is your legally binding agreement to repay all Direct PLUS Loans you receive under the Direct PLUS Loan MPN.
Adverse Credit
PLUS Counseling is required if the U.S. Department of Education (DOE) has informed you that you have an adverse credit history and you have obtained an endorser or documented to the satisfaction of the U.S. DOE that there are extenuating circumstances related to your adverse credit history. PLUS Counseling can be completed at the Federal Student Aid website.
PLUS Loan Repayment
As a parent, you must repay the PLUS loan
- Repayment begins 60 days after the loan is fully disbursed. Note: A parent may defer repayment until 6 months after the student stops attending at least half-time. If the parent wishes to defer repayment, he/she must contact Direct Loan Servicing at 1-800-433-3243.
- The repayment term is up to 10 years.
- There is no grace period. Interest begins accruing upon loan disbursement.
PLUS Loan Borrowing Limits
With a PLUS loan for the 2025-2026 academic year, you can borrow up to the cost of attendance minus any other financial aid awarded.
Interest Rate
| Loan Type | First Disbursed between July 1, 2024 and June 30, 2025 |
|---|---|
| Direct Subsidized and Unsubsidized Loans (for Undergraduate Students) | Fixed at 6.53% |
| Direct Unsubsidized Loans (for Graduate or Professional Students) | Fixed at 8.08% |
| Direct PLUS Loans (Parents and Graduate or Professional Students) | Fixed at 9.08% |
Origination Fees
In addition to charging interest, PLUS loans also charge a 4.228% origination fee. The fee comes out of the first funds you receive from your loan.
Federal Direct PLUS Loan Master Promissory Note (MPN)
The MPN acts as a contract between the borrower (in this case, your parents) and the U.S. Department of Education. By signing the MPN, parents promise to repay the amount loaned and agree to other important terms of the loan. The MPN must be completed so that you can receive money from the loan.
The MPN may be signed online at the Federal Student Aid website
Receiving your loan funds
The loan money will first be applied toward your student's tuition and fees account balance. On the Parent PLUS loan application, the parent selects to refund either to the borrower (parent) or to the student. Refunds to the the student are sent through the university refund process. If the refund selection is to borrower/parent, the parent must be set up as a vendor and will be invited to complete the vendor setup through PaymentWorks.