Student Financial Aid

Parent (PLUS) loans

Students must first apply for FAFSA to be considered for a Federal Direct PLUS Loan. The PLUS Loan has no interest subsidy and should be regarded as a last resort for most students and their parents. Interest on PLUS loans borrowed after October 1st and during the 2016-17 award year is set at 6.31% for the life of this year’s loan. Loans borrowed in previous or subsequent dates may have a different interest rate.

Check here for a collection of previous interest rates

The Federal Direct Parent Loan for Undergraduate Students (PLUS) enables parents to borrow for their dependent undergraduate children. These loans are based on credit, not on need. However the maximum amount borrowed may not exceed the difference between the school’s determination of the cost of attendance and assistance received, including scholarships and other financial aid.

View or print out a detailed checklist for the Parent loan application process

How To Apply

If a parent wishes to borrow this loan, the student must first accept the loan on the award notice on MyUW.  If the PLUS loan is not part of the financial aid award, the student or parent may contact our office to request to have the loan added.

The parent borrower must complete an electronic application for the loan and sign a master promissory note electronically. During the application process, you (the borrower) will have options to defer repayment while your student is attending school, specify if the loan funds may pay non-tuition charges, determine if any credit balance is refunded to you or to your student, and specify the loan amount to borrow.

If the amount you want to borrow is different than what we have currently listed on your student’s award notice, indicate the total amount to borrow on the electronic application.

Specific details on the application process are provided.

After the intital application, if you want to make changes to the amount applied for, notify our office to borrow less and we will reduce the amount of the loan. To borrow more than what was authorized on the original application, you (the borrower) will need to return to the Direct Loans website and complete a new application listing the total loan amount requested. We will download the parent application data from this website and update the UW student record.

A credit check is done at the time of completion of the electronic application and master promissory note. If the credit check is denied, you will be given options for completion of the Parent Loan process. If an endorser for the loan is obtained, you will need to also complete PLUS counseling at https://studentloans.gov.

Repayment

Repayment of the PLUS loan begins 60 days after the full amount borrowed for the school year has been fully disbursed. However, you can request that the payment be deferred while your student is attending at least half-time and up to 6 months after they cease to be enrolled on at least a half-time basis. Please keep in mind that interest continues to accrue during periods of deferral and you may want to make quarterly interest payments instead of capitalizing the interest in order to keep your overall loan debt down.

Loans borrowed through the Federal Direct Loan Programs are borrowed directly from the federal government. The university will coordinate all paperwork for you (see Completing Paperwork for Loans). Repayment arrangements are handled by the Direct Loan Servicer (a servicer contracted by the federal government).

How much do I repay each month?

The amount you repay depends on how much you borrowed, your interest rate and how many years you will repay the loan. You can put this amount into the Direct Loan Repayment Calculator to get the amount of your monthly repayment.

Are there different payment plans?

The Parent Loan program has different payment plans you can choose from in repaying your loan. Generally, you’ll have from 10 to 30 years to repay your loan, depending on the repayment plan that you choose. Your monthly payment amount will be based on how much you borrowed and how long you take to repay. You may choose one of three repayment plans:

  • Standard Repayment Plan – Fixed monthly payments for up to 10 years.
  • Extended Repayment Plan – Fixed monthly payments for 12 to 30 years, depending on the total amount of your Parent Loans.
  • Graduated Repayment Plan – Payments that start off lower, and then gradually increase, usually every two years. You’ll repay your loan in full within 12 to 30 years, depending on the total amount of your Parent Loans.

You can change plans at any time. There’s no penalty if you make payments before they are due or pay more than the amount due each month.

Where do I repay my loans?

Parent Loans taken out for a UW student are repaid to the Direct Loan Servicer. You can determine who your servicer is from the NSLDS website.