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.
The PLUS loan is not transferable to the student during repayment.
If you are borrowing Federal Direct Loans for the first time, you must complete a PLUS Master Promissory Note (MPN) for Parents online.
**On March 20, 2020, Federal Student Aid began providing the following temporary relief on ED-owned federal student loans: suspension of loan payments, stopped collections on defaulted loans, and a 0% interest rate. As of November 22, 2022, these COVID-19 emergency relief measures have been extended until the U.S. Department of Education is permitted to implement the debt relief program or the litigation is resolved. If the debt relief program has not been implemented and the litigation has not been resolved by June 30, 2023, payments will resume 60 days after that. Click here to read more.**
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.
2. Review Financial Aid in MyUW Student Center
You must review your financial aid 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.
5. Disbursement
When the MPN and all other requirements are complete, the loan money will disburse to the student’s tuition account prior to the start of classes each semester. Excess PLUS funds will be refunded as designated on the PLUS Loan Request application.
Interest Rate
Grade Level |
Loan Type |
2022-23 RateFirst disbursed between 7/1/2021 and 6/30/2022 |
2023-24 RateFirst disbursed between 7/1/2022 and 6/30/2023 |
| Parents | PLUS | 7.54% | 8.05% |
Origination Fee
| Loan Type |
2020 FeeFirst disbursed between 10/1/2019 and 9/30/2020 |
2021-22 FeeFirst disbursed between 10/1/2020 and 9/30/2023* |
| PLUS | 4.236% | 4.228% |
*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 – Student Loan Repayment.