The Federal Direct Parent PLUS Loan is a credit-based educational loan available to parents of dependent undergraduates directly through the U.S. Department of Education at participating schools, like UW-Madison. Parent borrowers are defined as a student’s biological mother or father, adoptive mother or father, or step-parent who was listed on the FAFSA. If you are borrowing Federal Direct Loans for the first time, you must complete a Master Promissory Note online.
The PLUS loan is not transferable to the student during repayment.
1. Submit FAFSA
You must complete the FAFSA. Be sure to submit any additional documents and/or information requested by our office that may be required to complete the application and award package.
2. Review Awards on MyUW Student Center
You must review your awards in your Student Center and accept or decline any offered aid.
3. Complete a PLUS Loan Application
Parent borrowers must apply for a Direct PLUS Loan Request for Parent Borrowers.
**Be sure to specify the loan amount you want, do not select ‘maximum’. Be careful to borrow only the amount you think you’ll need. Your parent will receive a credit decision immediately following the submission of the PLUS application.
Denied parent borrowers will have the option to appeal or designate a cosigner/endorser. It is your parent’s choice to pursue this option. Parents who use an endorser or who successfully appeal the credit decision are required to complete additional PLUS Credit Counseling before the loan funds can be disbursed. If your parent borrower is denied and chooses not to appeal or include an endorser, you may become eligible for up to $4,000 in an additional Direct Unsubsidized loan ($5,000 for juniors/seniors). For questions and answers about credit decisions and/or adverse credit history contact the Student Loan Support Center at 1-800-557-7394 or review Federal Student Aid’s fact sheet.
4. First Time Borrower Documents
First time Parent PLUS borrowers must complete the PLUS Master Promissory Note (MPN) for Parents.
When the MPN and all other requirements are complete, the loan money will disburse to your tuition account prior to the start of classes each semester. Excess PLUS funds will be refunded as designated on the PLUS Loan Request application. Note: PLUS loans will not automatically pay for UW Housing Charges. You are responsible for using excess PLUS funds to pay UW Housing bill separately.
First disbursed between 7/1/2016 and 6/30/2017
First disbursed between 7/1/2017 and 6/30/2018
First disbursed between 10/1/2016 and 9/30/2017
First disbursed between 10/1/2017 and 9/30/2018*
*Due to Sequestration – origination fees will continue to adjust for all federal direct loans on October 1 each year.
Repayment begins 60 days after the final loan disbursement. Parent borrowers may request an in-school deferment as long as the student for whom the loan was borrowed is enrolled at least half-time.
Everything you could want to know about repaying your federal student loan(s) can be found online – Federal Student Aid website.