Federal Direct Parent PLUS Loans

Federal Direct Parent PLUS Loans are credit-based loans available to parents of dependent undergraduate students who are enrolled in an eligible degree or certificate program on at least a half-time basis (six credit hours/term). Only U.S. citizens and permanent residents are eligible.

To apply for a Federal Direct Parent PLUS loan, the following forms must be completed:

  • The Free Application for Federal Student Aid for the appropriate school year.
  • Complete an application for a Federal Direct PLUS Loan for Graduate/Professional Students for the appropriate school year at studentaid.gov.
  • New borrowers must sign a Master Promissory Note which can be completed at studentaid.gov. Parents who have previously borrowed a Direct Loan and signed a Master Promissory Note will not need to sign another Note.

This application must be submitted at least six weeks prior to the start of the term for Direct Parent PLUS Loan funding to be available by the time classes begin.

As of July 1, 2026, the new Parent PLUS Loan annual borrowing limit is $20,000 per year, with an aggregate borrowing limit of $65,000, per dependent student unless a limited exception applies.

A limited exception allows parent borrowers to continue to borrow Parent PLUS Loans up to the Cost of Attendance, as established by the Office of Financial Aid, minus any other financial aid the student will receive. The limited exception applies for the duration of the student’s expected time to credential (the difference between the length of the academic program and the period the student already completed) or three academic years, whichever is less. To qualify for the limited exception:

  • The student must remain continuously enrolled in the same program at the same institution as they were enrolled as of June 30, 2026, AND
  • Either the parent or the student must have borrowed a Federal Direct Loan for that same program prior to July 1, 2026.

Interest rates are set by the federal government every July 1st for the following year. The interest rate for Parent PLUS Loans disbursed on or after July 1, 2025, and before July 1, 2026, is 8.94%. The interest rate for Parent PLUS Loans disbursed on or after July 1, 2026, and before July 1, 2027, is 9.07%. All loans disbursed on or after October 1, 2020, will have an origination fee of 4.228% deducted from the amount borrowed.

It is usually to the family’s advantage for the student to apply for the Federal Direct Subsidized/Unsubsidized Loans (student loans) before applying for the Federal Direct Parent PLUS Loan. In fact, the amount of subsidized Direct Loan that the student may borrow will be counted when determining Direct Parent PLUS Loan eligibility, even if the student chooses not to borrow the subsidized Direct Loan.

Upon receipt of the appropriate application materials, the Office of Financial Aid will determine the loan eligibility and originate the loan.

For academic year Direct Parent PLUS loans, two equal disbursements are made — one at the beginning of each semester — through a direct credit to your student's account with the University of Richmond. For summer session and single term loans, one disbursement is made at the beginning of the term.