Direct Parent PLUS Loans

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

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

Completion Requirements

Parent must apply for a Direct Parent Plus Loan at

Annual Loan Limit

Up to the Cost of Attendance (COA), minus other financial aid and resources.

Interest Rate

8.05% from July 1, 2023 through June 30, 2024


Origination Fee: 4.228% (subject to change on October 1, 2023)


  • 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 Direct 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 Direct PLUS Loan if the parent can document that there are extenuating circumstances related to the adverse credit history.

Additional Student Loan Eligibility if Direct PLUS Loan is denied

If the parent is denied a Direct 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 UA Little Rock Classification Maximum Additional Unsubsidized Loan
Freshman  $4,000
 Sophomore  $4,000
 Junior  $5,000
 Senior  $5,000