Federal Direct PLUS Loans
The Federal Direct PLUS Loan program is a non-need-based source of loan funds for the parent(s) of
dependent students. Federal Direct PLUS Loans may be used in conjunction with Federal Direct
Stafford Loans. Each year, parents of dependent students may borrow an amount not to exceed the
cost of attendance less any financial aid (including Federal Direct Stafford Loans). See the current interest rates at studentaid.ed.gov. The Federal Direct PLUS Loan on the undergraduate level is only available to parents. Guardians are ineligible. A credit check is performed on all parental borrowers, and pre-approval is required.
PLEASE NOTE: This loan is in the parent’s name and the parent will be responsible for repayment of the loan.
How to Apply for a Federal PLUS Loan
If you are an eligible parent interested in applying for a Federal Direct PLUS Loan, you will need to complete the following steps:
1. Ensure that your student has applied for admission to Reynolds, has been placed into an eligible academic curriculum, and is making Satisfactory Academic Progress (SAP).
2. Obtain and complete the Federal Direct PLUS Loan application.
3. Complete your Master e-Promissory Note (MPN) at www.studentloans.gov. Be sure to choose the “Complete New MPN for Parent PLUS Loans” link.
4. Ensure that the student enrolls for, attends, and maintains at least six credit hours to maintain loan eligibility. Students must stay active in at least six credit hours each semester. Students who drop or withdraw below half-time status risk having Federal Direct PLUS Loans canceled.
5. Finally, allow 4-6 weeks for processing, depending on the time of the year.
The repayment period for a Direct PLUS Loan begins immediately after the last disbursement of the loan, while the student is still in school. Parents may be able to deter making payments while the student is enrolled at least half-time, and for an additional six months after the student graduates or drops below half-time enrollment status.
There are various repayment options available. You can learn more information about the repayment plans and use the Repayment Estimator to estimate monthly payments at studentaid.gov/repayment-estimator.