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Federal Direct PLUS Loans for Parents

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.

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.

How is the PLUS loan repaid?

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 fulltime. If the parent wishes to defer repayment, he/she must contact Direct Loan Servicing at 1-800-848-0979. 
  • The repayment term is up to 10 years.
  • There is no grace period. Interest begins when you first receive the loan

How much can you borrow with your PLUS loan?

With a PLUS loan, you can borrow up to the cost of attendance minus any other financial aid awarded.

Interest Rate

Federal Direct Loan Interest Rates by Disbursement Dates
Loan Type First Disbursed between July 1, 2013 and June 30, 2014
Direct Subsidized and Unsubsidized Loans (for Undergraduate Students) Fixed at 3.86%
Direct Unsubsidized Loans (for Graduate or Professional Students) Fixed at 5.41%
Direct PLUS Loans (Parents and Graduate or Professional Students) Fixed at 6.41%

Origination fee of 4.288%

In addition to charging interest, PLUS loans also charge a 4.288% origination fee. The fee comes out of the first funds you receive from your loan.

Applying for a Direct PLUS Loan is a two-step process.

  1. Parents first complete a Federal Direct PLUS Loan Application for Parents. The information obtained on the application allows us to complete a credit check. Please submit the application along with a copy of your social security card and driver’s license to the Office of Student Financial Aid.
  2. After the application is processed along with a credit check, the parent will receive an email from The Office of Student Financial Aid instructing him/her to complete the Direct PLUS Master Promissory Note (MPN).

Parents should not complete the MPN until they receive approval from the Office of Student Financial Aid.

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

Receiving your loan funds

Your loan money will be applied to your student's account and we will deduct any amount you owe us in tuition or fees. We mail any funds left over to your home. The parents can authorize a refund to their children using the Federal Direct Parent PLUS Borrower Refund Request Form available with the Federal Direct PLUS Loan Application for Parents, in which case the refund will be issued to the student through Higher One.

 Date Updated: 11-DEC-2013

Contact Us

University of Houston-Clear Lake
Office of Financial Aid
SSCB 1.105
2700 Bay Area Blvd.
Houston, TX 77058-1098

(281) 283-2480

(281) 283-2502


Fall/Spring Hours:
Mon-Thurs. 9am - 6pm
Fri. 8am-5pm

Summer Hours:
Mon-Thurs. 9am - 6pm
Fri. 8am-noon

School Code: 011711
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