Federal Direct Parent PLUS Loan
Office of Financial Aid
Parents of dependent undergraduate students may borrow a Federal Direct Parent Plus loan. The maximum a parent may borrow is the cost of attendance minus all other financial aid sources. If you need assistance with the amount you (or your parents) are eligible to borrow, you may contact the Financial Aid Office.
The Parent PLUS loan is interchangeable with a private alternative loan, which is a loan in the student's name rather than the parent's. For more information on alternative loans, please visit the Hamline student loans page.
Parent eligibility requirements for the Parent PLUS loan
In order to apply for a Parent PLUS loan, you must be the student’s biological parent, adoptive parent, or the parent’s stepparent if the biological or adoptive parent has remarried at the time of application and their information is included on the FAFSA. Your child must also be enrolled at least half-time.
How to apply
In order to fill out the Acknowledgement, you will need your Verified FSA ID.
If this is your first time accepting a federal student loan, you are acknowledging that you understand your responsibility to repay your loan. You will also need to know the school name, the degree name, and the field of academic program.
If you already have existing federal student loans, you are acknowledging that you understand how much you owe and how much more you can borrow.
1. Request loan amount
To apply for a Parent PLUS Loan, complete the Federal Online Direct Parent PLUS Loan Request (studentaid.gov). You, as the parent, will need to create an account on studentaid.gov and log in with your FSA ID username and password. The parent applying for the PLUS loan would need to fill out the Loan Amount Requested and Loan Period. Please be prepared to enter the amount of the loan you desire to borrow. If you select either the Maximum or Unknown Amount options, we will contact you to confirm in writing with us the amount you intend to borrow. This may substantially delay the processing of the loan. The Loan Period is the Start and End Dates of the academic period for which the loan is intended.
2. Complete a Master Promissory Note (MPN)
First time Hamline Federal Direct Parent PLUS borrowers and borrowers that require an endorser must complete a Master Promissory Note for each of your dependent students (studentaid.gov). Parents will need to sign in with their username and password used on the FAFSA. When logging in, please make sure to use the information for the parent who is applying for the Parent PLUS loan. If the student logs into the site and tries to sign the MPN, it will result in an error. For questions about Federal Direct Parent PLUS Master Promissory Note or approval status, contact the Loan Origination Center at 1-800-557-7394.
3. OPTIONAL: Annual Student Loan Acknowledgement
The Annual Student Loan Acknowledgement (studentaid.gov) is for student and parent borrowers who are accepting Federal Subsidized/Unsubsidized Loans, PLUS Loans for Parents, or PLUS Loans for Graduate/Professional Students. It will take around 10 minutes to complete the Acknowledgement. Within the Annual Student Loan Acknowledgement, borrowers are able to view how much they currently owe in loans, their progress toward aggregate loan and grant limits (if applicable), and have access to content surrounding smart borrowing, interest rates, and payments.
Loan details
Federal Direct Parent Plus loans first disbursed on or after October 1, 2020, to September 30, 2024, have a loan fee of 4.228%, which is taken off the amount requested at each disbursement.
The Federal Direct Parent PLUS loan has a fixed interest rate of 7.54% for loans disbursed between July 1, 2022 and June 30, 2023, and a fixed interest rate of 8.05% for loans disbursed between July 1, 2023 and July 1, 2024.
Repayment information
The Federal Direct Parent PLUS loan is flexible and allows a parent to decide how much to borrow. Repayment begins within 60 days after the full amount borrowed for a school year has been disbursed (around April 1 for a full-year loan). However, parents may request that repayment be delayed until 6 months after the student graduates or is no longer enrolled at least half-time. To request this deferment, parents must contact their loan servicer. A letter identifying the loan servicer is mailed from Direct Loans upon the first disbursement. Loan servicer information is also available within seven to 10 days from the first disbursement on studentaid.gov using the parent borrower’s information and FSA ID and Password. The minimum monthly payment on a Federal Direct Parent PLUS Loan on a standard repayment plan is $50 per month.
If you are denied
If your credit is denied, you will receive notification from the direct loan servicer. You can:
- Seek a credit status override. Contact the Direct Loan Origination Center at 1-800-557-7394 and Equifax (their credit bureau) at 1-800-685-5000.
- Request a review. If you have extenuating circumstances, provide documentation to Direct the Direct Loan Origination Center.
- Have a third-party endorser co-sign the Federal Direct Parent PLUS loan application. Contact Direct the Direct Loan Origination Center at 1-800-557-7394.
- Choose not to pursue the denied Federal Direct Parent PLUS loan. Contact the Office of Financial Aid at 651-523-3000 to discuss alternative options
Please note: Some borrowers may need to complete online PLUS counseling. This is different than Entrance Counseling and, if required, must be completed in order for the loan to disburse. Direct Loans will notify you if you are required to complete the counseling.
Enrollment status—undergraduate and post-baccalaureate students
| Enrollment status | Credit requirement |
|---|---|
| Half-time* | At least 6 credits per semester |
| Full-time | At least 12 credits per semester |
| State Grant | At least 15 credits per semester for full reward |
*Half-time status is a requirement for all federal and some alternative student loans.
