Parent PLUS Loans

Federal Parent PLUS Loan (for parents of Dependent Undergraduate Students)

The Parent PLUS loan is a federal loan that allows a parent to borrow funds to help meet your educational expenses. Unlike the Stafford loan, eligibility for the Parent PLUS loan is based on the borrower’s credit worthiness.


Completion Requirements

Parent must apply for a Parent Plus Loan at

  • Parent uses his/her FSA ID to access the website
  • Parent completes the Parent Plus Request

Parent must sign a Plus Master Promissory Note (Plus MPN)

Annual Loan Limit Up to the Cost of Attendance (COA), minus other financial aid and resources.
Interest Rate 6.84% from July 1, 2015 through June 30, 2016 (expected to change July 1, 2016)
Fees Origination Fee: 4.272%
  • Repayment begins when the loan is fully disbursed.
  • The borrower has the option of deferring repayment until six months after the dependent student ceases to be enrolled at least half time. Interest is capitalized upon entering repayment.
  • The borrower (your parent) is responsible for interest that accrues from the date of disbursement.
Credit Worthiness A parent with an adverse credit history may still borrow a PLUS Loan if the parent gets an endorser/co-signer with an acceptable credit history. The endorser cannot be the student.

In some cases, the parent may be able to obtain a PLUS Loan if the parent can document that there are extenuating circumstances related to the adverse credit history.


 Additional Student Loan Eligibility if PLUS Loan is denied If the parent is denied a PLUS Loan, the student may request additional unsubsidized student loan funds. The amount of additional loan eligibility will vary, based on the student’s classification and previous student loan borrowing history, but cannot exceed the following limits:

Student’s UALR Classification Maximum Additional Unsubsidized Loan
Freshman  $4,000
 Sophomore  $4,000
 Junior  $5,000
 Senior  $5,000