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Q & A on the Parent Loan for Undergraduate Students (PLUS)

Q: Who can borrow a Parent Loan for Undergraduate Students (PLUS) loan?

A: Only the parent, stepparent, or legal guardian of a dependent student.

Q: Can a student ever borrow a PLUS loan?

A: Yes, but only if you happen to be a student who is also the parent of a child who is currently enrolled in college. In that case, you may take out a loan to pay the educational costs for your child, but not a PLUS loan for yourself.

Q: How do I request a PLUS loan?

A: Each time a parent accepts a Parent PLUS Loan they must complete the Active Confirmation form. In addition, if the parent does not already have one on file, they must complete the PLUS Master Promissory Note (MPN) at the federal website. The student does not complete either document. The Active Confirmation can be mailed or faxed back to One Stop Student Services after completion. This document will cause the Direct Loans center to perform a credit check.

Q: What if I am denied a PLUS loan?

A: If denied a PLUS loan, you or your child may contact One Stop Student Services by calling 612-624-1111 or 1-800-400-8636, or emailing, to request information on other student loan funds.

Q: What is the PLUS interest rate?

A: For the most up-to-date interest rate information go the loan comparison chart.

Q: When does repayment begin?

A: There is no grace period for a Parent PLUS Loan. Repayment begins 60 days after the last disbursement of the loan. Parent borrowers must contact their loan servicer to request a deferment based on the dependent student's enrollment status. More information for parents on deferment and repayment of Direct PLUS loans can be found on their loan servicer's website. For a list of these websites see or call 1-800-433-3243.

Q: What happens if, as a parent, I'm already repaying a Direct PLUS Loan, then I take out another one for the same or another child? How does this affect my monthly payments?

A: Your loan servicer will send you one monthly bill for both loans. Depending on the repayment plan you have selected and the amount of your loans, your monthly payment may increase.

Q: May I reduce the loan amount offered?

A: At the time your child submits her/his electronic Financial Aid Award Notice (eFAAN), s/he must indicate one of three responses (accept, decline, or reduce). If you choose the “reduce” option, you must indicate the reduced amount in the field provided by the “reduce” checkbox.

Q: Do I pay any fees?

A: An origination fee based on 4 percent of the loan principal is deducted from each loan disbursement.

Q: How much money can I borrow?

A: Your child will be offered the maximum amount that s/he is eligible to borrow, but you may reduce that amount if you do not need it. You may borrow any amount up to the cost of attendance, minus any other financial aid s/he may receive. The borrowing limit is based on a determination of your financial need. We encourage you to borrow only the amount you need at the time the loan is offered. You can always request the difference later if it is needed.

Q: Can I make changes to the loan amount during the school year?

A: Yes. If your circumstances have changed since the time you accepted the loan, you may request an adjustment to your loan amount. You may increase the amount if you did not accept the full amount of the loan offered to you. To reduce the amount, please have your student email your request to

Q: How can I get more information on the PLUS?

A: You may request published information from the federal government by calling their toll free number 1-800-433-3243, or go to the Federal Student Aid website.