The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program. 

PLUS loans are federal loans that parents of dependent undergraduate students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.

In general, to receive a Direct Parent PLUS Loan, you must: 

• be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time at an eligible school;
• not have an adverse credit history; and
• meet the general eligibility requirements for federal student aid, your child must also meet these requirements. 

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 Arizona email account.

• If you are denied the Federal Direct Parent PLUS Loan, there are three options available.
• OSFA will not continue to process the loan until you communicate via email 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 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. Appeal the adverse credit decision with the Direct Loan Applicant Service Center at 1.800.557.7394.

2.  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.
• Sign in with the FSA ID at https://studentloans.gov.
• Use the Loan Reference Number (same as the loan identification number, also called an "Endorser Code" or "Award Identification Number") that OSFA will provide to you via email. 

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. Your student may request an additional Federal Direct Unsubsidized Loan. If this option is selected, the Direct Parent PLUS Loan will be canceled and an additional Federal Direct Unsubsidized Loan will be offered to your student. The amount of the loans vary depending on the student's grade level in school:

• Freshmen and Sophomores - up to $4,000 for the academic year 
• Juniors and Seniors - up to $5,000 for the academic year

Find current interest rates and loan fee information on Federal Student Aid.

The maximum Direct Parent PLUS loan amount you can borrow is the cost of attendance (determined by the school) minus any other financial assistance received.

Your student will be offered a Direct Parent PLUS Loan for the maximum amount you may borrow based on the University of Arizona's cost of attendance and your student's other offered financial assistance.

Parent borrowers will generally be expected to start making payments on Direct Parent PLUS Loans once the loan is fully disbursed (paid out). However, you may request a deferment while your student is enrolled at least half-time and for an additional six months after your student graduates, leaves school, or drops below half-time enrollment. 

During any period when you're not required to make payments, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. 

There are several repayment options available that are designed to meet the individual needs of borrowers.

Learn about your repayment options.

Requesting Additional Federal Direct Parent PLUS Loan Funds

To request that additional Direct Loan funds be offered, you must contact our office.

Requesting Cancelation of Your Federal Direct Parent Loan

A written request (fax or email) is required to reduce or cancel a Federal Direct Parent PLUS Loan. If the funds have already been disbursed to your student's Bursar billing account, you will be required to return the disbursed funds before a disbursed loan can be canceled. 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 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 immediately.

No, a Direct PLUS Loan made to a parent cannot be transferred to the student You, the parent borrower, are legally responsible for repaying the loan.

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, the second parent must wait 24 hours and then they will also be able to accept a portion of the Parent PLUS loan.
• The student must provide each parent with their individual and separate  Guest Access.

Yes. For purposes of qualifying for a Direct PLUS Loan, you’re considered to have an adverse credit history if

• you have one or more debts with a total combined outstanding balance greater than $2,085 that are 90 or more days delinquent as of the date of the credit report, or that have been placed in collection or charged off (written off) during the two years preceding the date of the credit report; or
•  during the five years preceding the date of the credit report, you have been subject to a default determination,
• discharge of debts in bankruptcy,
• foreclosure,
• repossession,
• tax lien,
• wage garnishment, or
• write-off of a federal student aid debt

See Department of Education website for more information.

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 Arizona email account.

• If you are denied the Federal Direct Parent PLUS Loan, there are three options available.
• OSFA will not continue to process the loan until you communicate via email 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 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. Appeal the adverse credit decision with the Direct Loan Applicant Service Center at 1.800.557.7394.

2. 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.
• Sign in with the FSA ID at https://studentloans.gov.
• Use the Loan Reference Number (same as the loan identification number, also called an "Endorser Code" or "Award Identification Number") that OSFA will provide to you via email. 

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. Your student may request an additional Federal Direct Unsubsidized Loan. If this option is selected, the Direct Parent PLUS Loan will be canceled and an additional Federal Direct Unsubsidized Loan will be offered to your student. The amount of the loans vary depending on the student's grade level in school:

• Freshmen and Sophomores - up to $4,000 for the academic year 
• Juniors and Seniors - up to $5,000 for the academic year

Find step-by-step tutorials for each of the three options above here