How to Apply for a Federal PLUS Loan

To apply for a Federal Parent PLUS loan, follow these steps:

1. Complete the Free Application for Federal Student Aid (FAFSA). Before applying for a PLUS loan, the student must complete the FAFSA. This will determine if the student is eligible for any need-based aid, which may impact how much the family needs to borrow.

2. Gather necessary information. To apply for a PLUS loan, you'll need your FSA ID, the student's information (name, date of birth, and Social Security number), and your own information (name, date of birth, Social Security number, and income information).

3. Go to the Federal Student Aid website. Log in with your FSA ID and select "Request a PLUS Loan" under the "Apply for Aid" tab.

4. Select "Parent PLUS" as the loan type. Then, enter the requested information about the student and parent borrower, including the loan period, loan amount, and the school the student will be attending.

5. Complete the credit check. After submitting the loan application, the parent borrower will need to complete a credit check. If the borrower has an adverse credit history, they may need to obtain an endorser or appeal the credit decision.

6. Sign the Master Promissory Note (MPN). If the credit check is approved, the parent borrower will need to sign the MPN, which is a legal agreement to repay the loan.

7. Receive loan funds. Once the MPN is signed, the loan funds will be disbursed directly to the school to pay for the student's educational expenses.

It's important to note that the Federal Parent PLUS loan is a type of federal loan that is available to parents of dependent undergraduate students. The loan has a fixed interest rate and requires credit approval. The amount of the loan can't exceed the cost of attendance minus any other financial aid the student receives.