Federal Parent PLUS Loans

Eligibility Requirements

• The student and the parent borrower must meet all the general Eligibility Requirements for federal aid.
• The PLUS Loan does not require financial need.
• Students must be enrolled at least half time (6 credits per semester.)
• The parent borrower must not have an adverse credit history.
• If the U.S. Department of Education denies your application, your son or daughter will become eligible to borrow additional Federal Direct Subsidized & Unsubsidized Loan funds.

Application Process

To apply for a PLUS Loan, you must complete all of these steps every academic year.

1. Complete a Free Application for Federal Student Aid (FAFSA).
2. Complete the Federal Parent PLUS Loan application process.

Loan Disbursements

Each semester, the Student & University Billing Office will credit your loan disbursement to the student’s TU account to pay tuition and other university charges.  Any remaining funds will be disbursed to the student or the parent as a financial aid rebate (depending on the option selected by the parent borrower).

Annual Loan Limits

After TU finishes processing your FAFSA, we will send a Financial Aid Notification which will list your maximum PLUS loan. You must choose the amount you want to borrow, and you do not have to borrow the maximum amount. 

Maximum Annual PLUS Loan Formula 

Cost of Education Budget
- Total Other Aid Received
= Maximum PLUS Loan Amount

You can borrow PLUS loans to cover both your TU charges and your other living and personal expenses.  To calculate how much you need to borrow for this academic year, compare your total grants/scholarships to our estimated Cost of Attendance Budgets or review our current rates for tuition, room, and board. 

Interest Rate

For PLUS Loans first disbursed from 7/1/23 to 6/30/24, the interest rate is 8.05%.  For loans first disbursed from 7/1/22 to 6/30/23, the interest rate was 7.54%.  The interest rates for loans first disbursed after 6/30/24 will be available here in mid-May.

Loan Origination Fees

In addition to the interest costs, borrowers must also pay a federal Loan Origination Fee, which is deducted from each loan disbursement.  For loans first disbursed on or after October 1, 2020 and before October 1, 2023, the fee is 4.228% of each loan disbursement.

Loan Repayment Information

The repayment period for principal and interest begins the day after the loan has been fully disbursed.  For example, a loan covering the fall and spring terms will enter repayment after the disbursement for the spring term.  The first payment becomes due within 60 days after the final loan disbursement of loan proceeds for an academic year. 

For additional information, visit these U.S. Department of Education links.

Repayment

• Use the Repayment Estimator to estimate your monthly payments.
• Compare the repayment plan options. The standard repayment plan offers the lowest total borrowing costs because it pays off your loan the fastest, but the other plans can be helpful if the monthly payments from the standard plan are too high. If you want to pay off your loan faster, you can prepay all or a portion of your loan at any time without penalty.
• If you have repayment problems or questions, contact your federal loan servicer.  To find your federal loan servicer, log in to studentaid.gov. They can help you to avoid the consequences of delinquent payments and default. Many options are available including different repayment plans, deferments and forbearance.

Deferment and Forbearance

Learn about your loan Deferment and Forbearance options:

• During qualified enrollment deferment periods, you may defer making payments on your PLUS loan, but interest will always continue to accrue during all deferment periods.
• If you don't qualify for a deferment, but are having trouble making your payments, you can request a forbearance. If you request is approved, you can temporarily postpone your loan payments, but interest will continue to accrue.
• You could also consider switching to a different repayment plan.

Loan Forgiveness, Cancellation and Discharge

• PLUS Loans are also eligible for several Loan Forgiveness, Cancellation and Discharge options including but not limited to total and permanent disability discharge and public services loan forgiveness. PLUS loans are not eligible for teacher loan forgiveness.

Direct Consolidation Loan

• Explore your direct Direct Consolidation Loan options if you are interested in reducing your total monthly loan payments by combining loans from several different federal loan programs into a single consolidation loan.