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 (1.75 units/term or 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 (FAFSA) for the appropriate school year
- The Federal Direct PLUS Loan Application for the appropriate school year at studentaid.gov
- New borrowers must sign a Master Promissory Note which can also be completed at studentaid.gov
Direct PLUS Loan applications are available on studentaid.gov starting in late April. Parents should complete the application as soon as possible, but no later than six weeks prior to the start of the term, for loan funding to be available by the time classes begin.
The maximum annual loan is determined by the Cost of Attendance, as established by the Office of Financial Aid, minus any other financial assistance the student will receive.
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, 2023, and before July 1, 2024, is 8.05%. The interest rate for Parent PLUS Loans disbursed on or after July 1, 2024, and before July 1, 2025, is 9.08%. All loans disbursed on or after October 1, 2020, will have an origination fee of 4.228% deducted from the amount borrowed.
Upon receipt of the appropriate application file from studentaid.gov, the Office of Financial Aid will determine the loan eligibility and originate the loan. Parents who have previously borrowed a Direct Loan and signed a Master Promissory Note will not need to sign another Note. New borrowers must sign a Master Promissory Note which can be completed at studentaid.gov.
Direct PLUS loans are typically processed for the academic year, and 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.