Parent Plus loans
What is a Parent PLUS loan?
If your student is an undergraduate, the Parent PLUS Loan is an option for you to help pay their education expenses.
Here are some things to know about the Parent PLUS student loan:
Your first step is to ensure you, the parent, have guest access to your student's finances in My ASU.
Watch video: How to grant guest access
The interest rate on Parent PLUS loans is fixed. The current interest rate for 2021–2022 is 6.28%.
The interest rate for 2022–2023, effective for loans originated on or after July 1, 2022 is 7.54%.
The interest rate is based on the 10-year treasury rate plus a fixed margin of 4.6%.
There is a 4.228% loan origination fee on all Parent PLUS Loans. This fee will be deducted from each disbursement.
How to apply for a Parent PLUS loan
- To start the process of applying for a Parent PLUS Loan, you and your student must complete a FAFSA.
- After ASU receives your student’s FAFSA and they have completed all the items under their Priority Tasks on My ASU, you may be offered a Parent PLUS Loan.
- If your student is graduating in the fall, they must apply for graduation and notify Financial Aid and Scholarship Services in writing that they plan to graduate and will only need their Parent PLUS loan for one semester. If your student does not do this, your loan will be split over the full year. Watch video: How to accept a Parent PLUS loan.
How to receive a Parent PLUS loan
When are Parent PLUS loans disbursed?
All Parent PLUS Loan funds will be disbursed to your student through Electronic Fund Transfer and will be applied toward their outstanding ASU charges no earlier than seven days prior to the start of each semester.
Watch video: How do I accept a Parent PLUS loan?
What happens to the leftover loan money?
Any remaining funds will be disbursed to your student via paper check or direct deposit to their bank account (your student can set this up through My ASU). See our calendar for disbursement dates and other important financial aid dates.
How to pay back Parent PLUS loans
A Parent PLUS Loan is like any other loan. As the parent, you must repay the loan even if your financial circumstances change or your student doesn’t complete their degree. Parent PLUS Loan payments begin 60 days after the loan is fully disbursed.
Parent PLUS loan FAQs
Generally, you must have a good credit history to qualify. Here are the details: If your credit report indicates you’re 90 days or more delinquent on any debt, are in default, have a bankruptcy, a foreclosure, a repossession, a tax lien, wage garnishment or a write-off of any Title IV federal financial aid during the last five years, you will not be eligible to borrow a Parent PLUS Loan unless you can obtain a credit-worthy endorser who agrees to repay the loan if you don’t. The U.S. Department of Education determines if you meet credit history criteria.
An endorser is someone who has a good credit history and agrees to repay the Parent PLUS Loan if you are unable to do so. An endorser must:
- Be a U.S. citizen, U.S. National or a permanent resident of the United States.
- Be the biological parent or an adoptive mother or father of your student. A step-parent is also eligible if their income and assets were provided on the FAFSA. A legal guardian or grandparent is not eligible to apply for a Parent PLUS Loan.
First, your student must grant you Parent Guest access to My ASU. Then:
- Log in to My ASU, Guest Access Tab, with your parent ASURITE User ID, and click on the “Accept Parent PLUS Loan” link. If you have more than one student attending ASU, make sure you are viewing the correct student.
- Make sure all the information on the form is correct.
- Enter the amount that you would like to accept, but not more than the amount offered by ASU, and click the Continue button.
- Processing of your loan will initiate a credit check through the U.S. Department of Education.
- ASU will receive notification of the approval or denial of your Parent PLUS Loan in 2-3 business days.
For all questions regarding your credit check, including credit criteria, please call the Federal Student Aid office at 800-557-7394.
There are some situations where payment can be deferred. It’s important to remember that if you are able to defer your Parent PLUS Loan, interest will continue to accrue during that time and any unpaid interest will be added to the principal balance of the loan. For more information on deferment, contact your loan servicer.
A loan servicer is a company that takes care of the billing and other services for your Parent PLUS Loan. Your Parent PLUS Loan is assigned to a loan servicer by the U.S. Department of Education after the first disbursement is paid out. The loan servicer will contact you to discuss the repayment plans available.
Federal PLUS Loans are subject to credit approval and can be denied based on certain criteria. You have three options available to consider if you are denied a Parent PLUS Loan because of your credit. If your Parent PLUS loan is denied because of your credit, you may be eligible to receive a Parent PLUS loan by securing a creditworthy endorser who agrees to repay the loan if you do not, or you may appeal the decision by documenting extenuating circumstances. Contact the U.S. Department of Education PLUS Credit Appeal line at 800-557-7394 or online at studentaid.gov.
If you’ve been denied a Parent PLUS loan and plan to secure a creditworthy endorser, you will be required to complete an Annual Student Loan Acknowledgment for Federal Student Loans. To complete the loan acknowledgement and ensure that your endorsed PLUS loan is sent to ASU, go to Complete an Annual Student Loan Acknowledgment for Federal Student Loans.
NOTE: Effective March 29, 2015, federal regulations require any parent whose Parent PLUS Loan was first denied credit and then subsequently approved (either with a creditworthy endorser or by documenting extenuating circumstances to the satisfaction of the Department of Education) to complete PLUS Credit Counseling.
You can complete PLUS Credit Counseling on studentaid.gov.
If you are unable to find a creditworthy endorser or appeal the denial of your loan, your student may request an additional Federal Direct Unsubsidized Loan. Your student can submit the Parent PLUS Loan Denial Funds Request form. There are specific limits on the amount of additional unsubsidized loans that may be awarded. The maximum annual amounts are $4,000 for first-year students and sophomores and $5,000 for juniors and seniors.
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