Direct PLUS Loans

The processes of applying for a loan as well as the repayment plans offered differ somewhat for Direct PLUS Loans and FFEL PLUS Loans.

How do my parents apply for a Direct PLUS Loan?
Your parents must complete and submit a FAFSA (available through the Internet on FAFSA on the Web or in print from your school or library) and a Direct PLUS Loan Application and Promissory Note, which are available from your school's financial aid office.

Do my parents need to find a lender?
No. Under the Direct Loan Program, their lender will be the U.S. Department of Education. Your school assists the federal government in administering the Direct Loan Program by distributing the loan application, processing the loan, and disbursing the loan funds.

How do my parents pay back the loan?
Your parents can choose the Standard, Extended, or Graduated Repayment Plan (see page 18). The Income Contingent Repayment Plan is not an option for Direct PLUS borrowers. A Direct PLUS loan can also be consolidated. See page 21 for more information on loan
20 www.ed.gov/studentaid consolidation. Some benefits might be lost if you consolidate PLUS loans. Check with the Consolidation Department (see page 22) to find out if loan consolidation is for you.


Go on to PLUS Loans Page 20 - Direct FFEL Loans Page 22 - Consolidation Loans Page 23