Federal Direct Parent PLUS Loan
IMPORTANT: Accepting the PLUS amount on CougarNet will NOT disburse funds to your account. The parent borrower MUST complete an application at StudentLoans.gov.
Federal Direct Parent PLUS Loans are offered to parents of dependent undergraduate students to help pay for educational expenses not covered by other financial aid. A credit check will be performed during the application process and is based on the applicant being credit-worthy. The maximum Parent PLUS Loan amount you can borrow is the Cost of Attendance minus all other financial aid received. The student’s Cost of Attendance may be found on the student’s award letter on CougarNet. It is important that you only borrow what you need.
How to Apply
To receive a Direct Parent PLUS Loan, the student must first complete the Free Application for Federal Student Aid (FAFSA). The parent must then complete a Parent PLUS application by logging in with their own FSA ID at StudentLoans.gov. If you do not have an FSA ID, you will be required to create one. Do not use your student’s FSA ID. Even if you have completed an application for fall/spring, a separate application is required for summer. Your credit check is valid for 180 days. Any additional applications during that time will use the same credit information to make a decision on your eligibility.
Note: All first-time PLUS borrowers must complete a Master Promissory Note (MPN) at StudentLoans.gov.
Can I Still Receive a Direct PLUS Loan if I Have an Adverse Credit History?
If you have an adverse credit history, you may still receive a Direct PLUS Loan through one of these two options:
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Obtain an endorser: An endorser is someone who is credit-worthy and agrees to repay the Direct PLUS Loan if you do not make payments. The endorser cannot be the child on whose behalf you are borrowing. The potential endorser must complete an Endorser Addendum at studentloans.gov.
Note: For borrowers whose application is approved based on an endorser, a new MPN must be completed with each application.
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Appeal your denied credit decision: Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history may make you eligible to receive a Direct Parent PLUS Loan.
All applicants whose PLUS Loans are approved based on these two options must complete PLUS Credit Counseling with each application.
What if My Appeal Is Denied and I Can’t Find an Endorser?
Students of parents who are not able to obtain a PLUS Loan may be eligible for additional unsubsidized loans. If during the application process you are denied a PLUS Loan, you may choose not to pursue the loan, and your student may be offered additional unsubsidized loans that can be accepted on their CougarNet. If during the application process your credit is denied and you choose to file an appeal or obtain an endorser, but later decide not to pursue the loan, you may send our office an email at finaid@siue.edu (using the parent’s email address given in the application) informing us you do not wish to pursue the loan. Your student can then be offered additional unsubsidized loans.
Loan Fees
There is a loan origination fee on all Direct PLUS Loans. The fee is a percentage of the loan amount and is deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed.
Current Interest Rates
View current Federal Direct Loans interest rates and learn how interest is calculated.
How Will I Receive My Loans?
SIUE will apply your loan funds to your student’s account to pay for tuition, fees, room and board, and other school charges. Any excess funds will result in a refund that will be disbursed to the parent borrower or the student based on the choice made during the application process. All refunds are disbursed by the Office of the Bursar.
When Will Repayment Begin?
Repayment will vary based on the repayment plan chosen at the time of application. Carefully review your repayment options when applying.
