Parent Loan for Undergraduate Student (PLUS)

The Federal Direct PLUS (Parent Loan for Undergraduate Students) Loan Program provides loans to parents of dependent undergraduate students attending post-secondary schools. The parent is the borrower of the PLUS Loan and is responsible for paying the interest and principal on the loan.

FACTS

• The interest rate on a Direct PLUS Loan is currently fixed at 9.08% however the rate changes every year.  Interest is charged on the loan from the date of the first disbursement until the loan is paid.
• Fees are 4.228% of the principal. 
• Parents may borrow up to the cost of attendance minus other aid the dependent student is receiving.
• Parents have an option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or wait until six months after the student ceases to be enrolled at least half-time.

QUALIFICATIONS

• Federal PLUS loans are available to creditworthy parents of dependent students
• Students must be enrolled at least half time (6 credits or more)
• An eligible parent borrower must be the natural, adoptive, or step-parent of the dependent student
• The parent borrower must be a U.S. citizen or eligible non-citizen
• The student must be eligible for Federal Financial Aid

APPLICATION PROCEDURE

• Access the SMSU Federal Direct PLUS Loan Authorization at the bottom of this page. 
• Complete and return the authorization to the Financial Aid Office
• The Financial Aid Office will process the PLUS Loan.
• The PLUS Loan borrower (parent) must complete a PLUS Loan Master Promissory note at studentaid.gov.  SMSU will not receive funds for the PLUS Loan until the MPN has been completed. 
• At the beginning of each semester, 1/2 of the loan funds will be electronically transferred to SMSU.  The funds will be applied toward educational charges for your son/daughter.
• If funds remain the overage amount will be directly deposited into the students bank account if they have completed a direct deposit form.  If no direct deposit form is on file, SMSU will print and mail a check made payable to the student to the student's local address. If this is not acceptable, the parent borrower must contact the SMSU Cashier at 507-537-7117.

*PLUS Loan applicants are required to complete a Federal Direct PLUS Loan Master Promissory Note (MPN). This note incorporates new functionality that will allow the parent to borrow for multiple years without having to complete a separate MPN for each requested loan amount. The Federal Direct PLUS MPN is valid for up to ten years, provided that the parent borrows within one year from the date the note was signed. If the parent has more than one student, the parent will need to complete a separate MPN for each student.

**WHAT IF THE PARENT IS NOT APPROVED FOR THE PLUS LOAN?
Dependent students who parents are denied the PLUS Loan may be eligible to receive additional funds from the Unsubsidized Federal Stafford Loan Program. Parents must complete the Federal Direct PLUS Loan Authorization and check the box giving SMSU authorization to perform a credit check. If the parent is denied, additional Unsubsidized Stafford Loan eligibility will be determined and the student will receive a revised award letter.  Students wishing to accept the new loan must complete a Stafford Loan Authorization accessed via their E-services Financial Aid award letter.

Link to the Federal Direct PLUS Loan Authorization 2024-2025

Code of Conduct

The SMSU Financial Aid Office staff are committed to helping students obtain educational funding. Each staff member has signed the Code of Conduct.