Federal Direct Parent Plus Loan

Direct PLUS loans can help pay for education expenses not covered by other financial aid. The U.S. Department of Education makes Direct PLUS Loans to eligible parents through schools participating in the Direct Loan Program. The borrower (Parent) is fully responsible for paying the interest regardless of the loan status. This loan is credit based, and a credit check is performed during the application process. 

Detailed instructions for completing the Direct Parent PLUS Request are available here.

Amount

The maximum PLUS loan amount a parent can borrow is the cost of attendance at UNT Dallas minus any other financial assistance their child receives. The cost of attendance is determined by UNT Dallas.

Eligibility

  • The FAFSA must be completed for Federal Direct PLUS eligibility to be determined.
  • To apply, the parent borrower must log onto the Federal Student Aid website to submit the Direct Parent PLUS Request. Detailed instructions for completing the Direct Parent PLUS Request are available here
  • Parents and their dependent child must be U.S. citizens or eligible noncitizens.
  • Students must be enrolled at least half-time each semester.
IMPORTANT NOTE:  The U.S. Department of Education conducts a credit check to establish eligibility. You cannot have an adverse credit history.
 

Disbursement and Payment

Loan funds will not be disbursed (pay) until all requested documentation, including the MPN has been submitted, the student's FAFSA information is reviewed and then their aid package will be considered completed and awarded.

A note will be placed on the student's myUNTD "To Do List" if additional steps are required before disbursement.

If the financial aid file is complete, disbursements can be made as early as ten days prior to the first day of a Fall or Spring fee payment (August/January) period. However, disbursements can also occur throughout an enrollment term upon completion of a file.

Repayment

You may request deferment of repayment of your Direct PLUS Loan:

  • while the student is enrolled at an eligible school on at least a half-time basis; and
  • for a 6-month period beginning on the date the student ceases to be enrolled on at least a half-time basis.

During each deferment period, you will not be required to make any payments on your Direct PLUS Loan. However, interest will continue to accrue. You will receive interest statements during the deferment period and may pay the accruing interest at any time. Any interest that you do not pay will be capitalized (added to your loan principal balance) at the end of the deferment period. Capitalization will increase your loan principal amount and the total cost of your loan.

If you defer repayment for both deferment periods described above, unpaid interest that accrues during the deferment periods will be capitalized only once, at the end of the additional 6-month deferment period.

If you do not request deferment, your Direct PLUS Loan enters repayment on the date of the last disbursement of the loan, and the first payment will be due within 60 days. Your servicer will notify you of your payment due date and payment amount. If you later change your mind and decide that you wish to defer payments while the student is in school, you may request a deferment at any time while the student remains enrolled on at least a half-time basis.

For more information regarding repayment, please visit Direct Loan Repayment Plans.

For information regarding deferment, please visit Direct Loan Deferment.

Repayment Length

Between 10 and 30 years to repay, depending on the amount owed and repayment plan selected.

Additional Information

  • If the loan is credit approved, parent borrowers must electronically sign a Federal Direct Loan Parent PLUS MPN.
  • Your FSA ID serves as your electronic signature and provides access to your personal records, so you should never give your FSA ID to anyone. Be sure to keep your username/password in a safe place.
  • The U.S. Department of Education charges an origination fee of the total amount borrowed per loan. This fee is deducted from the loan by the U.S. Department of Education before the proceeds are credited to a student's account.
  • Parent Direct PLUS Loan borrowers do not have to complete entrance counseling.

Visit the Federal Student Aid for more information.