Parent PLUS Loan

Federal Direct Parent PLUS Loan

Direct Parent PLUS loans are unsubsidized loans for the parents of dependent students. Parent PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. These loans are awarded to dependent undergraduate students who meet the following criteria:

  • Enrolled in an eligible degree-seeking program
  • Enrolled at least half-time (6 credits for undergraduate students)

Parent eligibility requirements for a Direct PLUS Loan:

You must be the student's biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time at a school. For financial aid purposes, a student is considered "dependent" if he or she is under 24, unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid (FAFSA) is submitted. (Exceptions are made for veterans, wards of court, and other special circumstances.) If a student is considered dependent, then the income and the assets of the parent have to be reported on the FAFSA.

Additional requirements to receive a PLUS loan:

Parent PLUS loan borrowers cannot have an adverse credit history (a credit check will be done). In addition, parents and their dependent child must be U.S. citizens or eligible non-citizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs. You can find more information about these requirements in Funding Education Beyond High School: The Guide to Federal Student Aid available at: external-link icon.

Credit check & endorser alternative:

When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible for a PLUS Loan, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan.

If you are appealing/endorsing the PLUS loan due to adverse credit, additional PLUS counseling must be completed by the parent (for Parent PLUS loans) at in addition to completing the credit appeal/endorse process. The government requires this additional PLUS counseling for anyone appealing/endorsing a PLUS loan with denied credit after March 29, 2015.  You may complete PLUS counseling by selecting "Complete Counseling", and selecting the 3rd option "PLUS counseling"

Loan limits, interest rate, and loan charges:

There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of your child's education minus any other financial aid received, such as a Direct Subsidized, Unsubsidized Loan, and/or grants and scholarships. The school will determine the actual amount you may borrow.

Student's Cost of Attendance
– Financial Aid Awarded
= Maximum PLUS loan amount

Beginning July 1, 2018, the interest rate for Direct PLUS Loans is a fixed rate of 7.60%. PLUS Loans disbursed prior to July 1, 2018 school, the interest rate is a fixed rate of 7.00%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. To find out more information on interest rates for Direct PLUS Loans, contact

In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. We deduct the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.


Repayment begins within 60 days after your loan is fully disbursed and lasts ten years. Parent borrowers may contact for more information.

Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds. Increases in Unsubsidized loans due to this, are upon student request (in writing) only.

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Applying for the Parent PLUS Loan

To take out a Direct Loan for the first time, go to and you must complete a:

  • Parent PLUS Application AND
  • Master Promissory Note (MPN)
    • The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department. It also explains the terms and conditions of your loan(s).

How to apply:

Since the parent is responsible for the repayment of the Federal Direct Parent PLUS loan, the parent must follow these steps:

  • Go to external-link icon to complete a Parent PLUS Application
  • The Parent borrower will be asked to "Sign In" using their FSA ID
  • Click "Request a Direct PLUS Loan"
  • On the next page, choose loan type "Parent PLUS"
  • Parent borrower will authorize an immediate credit check
  • If credit is approved and it is the first time that the parent borrower is seeking the Parent PLUS loan at University of Hawaiʻi at Mānoa, then the borrower will be directed to complete the DL Parent PLUS MPN.
  • Click on the link "Complete MPN" and choose "Parent PLUS" to complete an MPN for the loan

The Parent PLUS loan and amount will be approved based on the parent's credit from their PLUS application and a completed promissory note. Upon approval, the loan will be disbursed to the student's UH account along with the student's other aid approximately ten days before the start of the semester at earliest. There may be delays if there are unsatisfied requirements or if enrollment is less than full time (12 credits undergraduate).

When the loan is disbursed, it will satisfy any charges that exist (e.g. Tuition, fees, housing). Any excess funds will be refunded via paper check or e-refund approximately one week after disbursement.

You'll receive a disclosure statement that gives you specific information about any loan that the school plans to disburse under your MPN, including the loan amount and loan fees, and the expected loan disbursement dates and amounts.

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