Federal Direct Parent PLUS Loan
Direct Parent PLUS Loans are federal loans that parents of dependent undergraduate students can use to help pay education expenses. The individual applying for the loan must be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time (6 hours minimum during the Fall and Spring terms and 3 hours minimum during the Summer term). The parent borrower may not have adverse credit history and must meet the general eligibility requirements for federal student aid. The student must also meet these eligibility requirements as the beneficiary of the loan. Specific details relating to the terms of the Parent PLUS Loan program, as well as current interest rates and repayment options, can be found on the Federal Student Aid website here.
We recommend that you wait until after April 1, 2016 to apply for a PLUS loan for the 2016-2017 academic year. Applying too early for a PLUS loan could cause your credit check to expire before the loan is processed.
To apply for a Direct Parent PLUS Loan the parent borrower must:
- Complete the FAFSA with your student.
- Determine the amount to borrow based on your student’s award notification and the Cost Information Worksheet.
- Log on to the Federal Student Loan website to complete the Federal Parent PLUS Direct Loan Application, submit to a credit check, and complete the Direct Parent PLUS Loan Master Promissory Note (MPN). You will need your FSA ID used to sign your child's FAFSA to access both items.
- Access, complete and submit the MSU Parent PLUS Loan Application.
NOTE: YOU MUST COMPLETE THE ONLINE CREDIT CHECK BEFORE SUBMITTING THE PARENT PLUS APPLICATION. FAILURE TO COMPLETE THE CREDIT CHECK WILL DELAY PROCESSING.
Certifying your loan
Completing these steps will indicate the amount you wish to borrow and will provide the office of student financial aid with the information needed to certify the loan—a process which is completed electronically. When we are notified of your credit approval, we will schedule disbursements according to established policy each semester after your student registers for classes.
If the credit check is not approved, we will notify your student of additional unsubsidized loan eligibility. Your student will be required to accept the additional unsubsidized loan funds from the PLUS denial either on My Missouri State or by submitting an Adjustment to Direct Loans Form. If you receive a credit denial after completing the Parent PLUS Direct Loan Application on the federal website, the Missouri State form needs to be submitted with the word “Denied” written on the loan amount requested line.
Cancelling a Direct Parent PLUS Loan
Complete and submit the Aid Cancellation Request Form.