Parents of undergraduate students can borrow Federal Parent PLUS Loans for their dependent
children. The U.S. Department of Education is the lender.
- 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.
To apply for a PLUS Loan, you must complete all of these steps every academic year.
- Complete a Free Application for Federal Student Aid (FAFSA).
- Complete the Federal Parent PLUS Loan application process.
Each semester, the Bursar’s 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.
For 2016-17 loans, the interest rate is 6.31%. (These rates apply to first disbursed between 7/1/2016 and 6/30/2017.)
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, 2017 and before October 1, 2018, the fee is 4.264% of each loan disbursement.
- For loans first disbursed on or after October 1, 2016 and before October 1, 2017, the fee is 4.276% 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
For additional information, visit these U.S. Department of Education websites:
- 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 servicer, log in to studentaid.ed.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.