This is a loan borrowed by the parent on behalf of the student. The parent is the borrower and is solely responsible for repaying the loan. The student has no obligation, legal or otherwise, to repay the loan.
Not Required to Borrow
Parents are not required to borrow a Federal Direct Parent PLUS loan and may borrow less than the amount offered. Parents can also decide to cancel a loan and have the funds returned to the lender. The student will be required to repay any Bursar's account balance created after a disbursed Federal Direct Parent PLUS loan is canceled.
Deadline to Accept Federal Direct Parent PLUS Loans
Parents must accept the Federal Direct Parent PLUS Loan before the end of the academic term for which the student is enrolled. For example, if a parent accepts an academic year Federal Direct Parent PLUS Loan during the fall term but the student does not return for the spring term, the student would only be eligible to receive the fall portion of the loan (half of the requested amount).
Parent Must Have Guest Access
Students must assign Guest Access to the parent(s) who will apply for the Federal Direct Parent PLUS Loan. Also, the parent(s) must be given the following level of access in the Financial Info section: View All, Make Payment, Parent PLUS Loan. For detailed instructions on how to apply for the Federal Direct Parent PLUS Loan, click here.
Loan Rates and Discounts*
- 7% Federal Direct PLUS loan fixed interest rate on or after July 1, 2017
- 6.31% Federal Direct PLUS loan fixed interest rate before July 1, 2017
- 10.50% Lifetime interest rate cap (undergraduate loans)
- 4.276% Origination Fee before October 1, 2017
- 4.264% Origination Fee starting October 1, 2017 as determined by the U.S. Department of Education
- Lender is the U.S. Department of Education
- Loans are serviced by agencies contracted by the U.S. Department of Education.
*For the most up-to-date information on rates and discounts, visit the U.S. Department of Education.
Deciding How Much to Borrow and Repayment Estimator
When deciding how much to borrow, families should consider the total number of years in the student's academic career. For example: If you borrow $10,000 the first year and the student's program is four years in length, you would need to borrow a total of $40,000 over the next four years. Use the Repayment Estimator to estimate your federal student loan payments under each repayment plan.
Federal Direct Parent PLUS Loan Eligibility
Parents/Students Must File a New Free Application for Federal Student Aid (FAFSA)
Families must file the FAFSA to be awarded any federal student loan including a Federal Direct Parent PLUS Loan. We recommend that you file the FAFSA before March 1st of each year. Your student must be offered the Federal Direct Parent PLUS Loan to complete the application process.
Satisfactory Academic Progress Standards
Students must meet the Satisfactory Academic Progress standards to maintain eligibility for federal financial aid (including the Federal Direct Parent PLUS Loan).
Legal Name and Social Security Number (SSN) Required
Parents and students must use their legal name and SSN as they appear on their Social Security card for all loan documents. This information must also match your Federal FSA ID and FAFSA; nicknames or initials cannot be used.
Federal regulations require that a Federal Direct Parent PLUS Loan be borrowed by either a biological parent or an adoptive parent. Any step-parent can also borrow the Federal Direct Parent PLUS loan for their student as long as the step-parent is listed on the FAFSA with one of the two biological or adoptive parents.
Parents who are eligible non-citizens will be required to submit copies of their immigration documentation. Instructions for completing this process will be emailed to the student.
Schools Determine Eligibility
Congress has given colleges and universities the sole responsibility for determining your eligibility for the Federal Direct Parent PLUS loan. We are also responsible for continuously monitoring your eligibility during the academic year.
Students may lose eligibility for Federal Direct Parent PLUS loan funds if they:
- fail to maintain satisfactory academic progress
- drop below minimum units
- fail to submit required documents before the certification deadline(s)
- receive additional aid over the cost of attendance
Your consent is not required if the University of Arizona (UA) must cancel or reduce your loans to remain in compliance with Federal regulations.
Credit Approval and Denial
Approval of the Federal Direct Parent PLUS loan is subject to a credit check by your lender, the U.S. Department of Education (ED). Parent or endorser credit status is only valid for 180 days, after which time a new credit check will be required. For this reason it is recommended that parents request the full anticipated amount needed for the entire academic year in one loan.
Parents Must Have Guest Access
Your student must assign you Guest Access on the UAccess Student Center in order for you to accept and track the progress of your Federal Direct Parent PLUS Loan.
The Federal Direct Parent PLUS Loan will only be denied for adverse credit reasons. ED defines these conditions as reasons for adverse credit:
- Bankruptcy (Chapters 7, 11, or 12 within the past 5 years)
- Note: U.S. Department of Education policy does not consider Chapter 13 bankruptcy adverse.
- Voluntary surrender within the last 5 years
- Repossession within the last 5 years
- Foreclosure proceedings started
- Foreclosure within the last 5 years
- Deed in lieu of foreclosure
- Accounts currently 90 days or more delinquent
- Note: Accounts currently reported as 90 days or more delinquent, which are over 5 years old since the last reported delinquency, are not considered adverse.
- Wage garnishment within the last 5 years
- Defaulted loan that has been claim paid
- Lease or contract on secured real estate
- County/State/Federal tax lien, within the past 5 years
See Protect Your Credit for advice on maintaining good credit throughout your academic career.
If Denied for Adverse Credit
The U.S. Department of Education (ED) will notify you if you are denied the Federal Direct Parent PLUS Loan. The school will provide the loan reference/ ID number for a denied loan through an email to the Student’s UA Email Account.
If you are denied the Federal Direct Parent PLUS Loan, there are three options available. UA will not continue to process the loan until you communicate via email to firstname.lastname@example.org as to which of the three options you prefer. Please note that once one of the options is selected, our office will process your aid based on that selection. You must notify our office via email at email@example.com to authorize a change in your original selection, as we will not take action based solely on new information received from ED or over the phone.
The three options available when a Federal Direct Parent PLUS Loan is denied for adverse credit are listed below:
1. You may appeal the adverse credit decision with the Direct Loan Applicant Service Center at 1.800.557.7394.
2. You may obtain a credit worthy endorser. Be aware that if your loan request is denied, it will most likely continue to be denied in the future. You should be prepared to secure an endorser who can also assist you in future years. The steps the endorser must complete are listed below:
- Obtain a Federal FSA ID at https://fsaid.ed.gov.
- Sign in with the FSA ID at https://studentloans.gov.
- Click Endorse a Direct PLUS Loan under PLUS Loan Process on the left side of the page.
- Enter the Loan Reference Number (same as the award identification number) that UA will provide to you via email. Loan reference numbers for 2016-2017 Federal Direct Parent PLUS Loans will be sent beginning July 15, 2016.
The endorsement is only valid for one loan. You must complete a new Federal Direct Parent PLUS Loan Master Promissory Note and endorsement each time you request a Federal Direct Parent PLUS loan.
3. Instead of getting an endorser, your student may request an additional Federal Direct Unsubsidized Loan:
- Additional Unsubsidized loan amount limit for Freshmen and Sophomores is $4,000
- Additional Unsubsidized loan amount limit for Juniors and Seniors is $5,000
Requesting Additional Federal Direct Parent PLUS Funds
To request that an additional Parent PLUS Loan be offered to your student, you must contact our office at firstname.lastname@example.org or 520-621-1858.
If two different parents intend to borrow a Parent PLUS loan for the student:
- Have the first parent accept their portion of the Parent PLUS loan. Once this has been completed contact our office to be offered a second Parent PLUS loan for the other parent to accept.
- Your student must provide each parent with Guest Access.
Requesting Cancelation of Your Federal Direct Parent PLUS Loan
A written request (fax: 520.621.9473, email: email@example.com) is required to reduce or cancel a Parent PLUS Loan. If the funds have already disbursed to the student’s account you will be required to return the disbursed funds before the loan will be cancelled. Any account balance created as a result of the reduction or cancelation of a disbursed loan must be repaid immediately.
Your consent is not required if the University of Arizona (UA) must cancel or reduce your loans to remain in compliance with Federal regulations. Regardless of the type of cancelation, any account balance created as a result of the reduction or cancelation of a disbursed loan must be repaid by the student immediately.