Federal Direct PLUS Loans are fixed rate loans provided by the US Department of Education to parents of dependent undergraduate students. The US Department of Education must perform a check of the borrower’s credit history. There is a 10 year repayment schedule and deferment options are available.

To be eligible for a Parent PLUS Loan:

  • Student must complete the Free Application for Federal Student Aid (FAFSA)
  • Student must be a dependent student who is enrolled in at least 6 credits each semester in a degree program
  • Student must maintain Satisfactory Academic Progress
  • Borrower must be the biological or adoptive parent of the student. A step-parent may borrow a Federal PLUS Loan if the step-parent’s financial information is listed on the student’s FAFSA application
  • You, the parent borrower and your student must be US Citizens or eligible non-citizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid Programs
  • The maximum amount is limited by the Cost of Attendance minus any other financial aid received at USM.  The ESTIMATED PLUS and/or ALT Loan listed on your student’s “MaineStreet” account is the maximum amount the University of Southern Maine may certify
  • If you are approved, you must choose the option “Complete Master Promissory Note.” New borrowers & borrowers who are approved with an endorser need to complete the Master Promissory Note.
  • If you are denied and will not be using an endorser or appeal due to extenuating circumstances process, your student is eligible for the additional Unsubsidized Federal Direct Loan. The additional loan eligibility will be posted as an “Offer” on your student’s “MaineStreet” account. Your student may view and accept any portion of the Offered Unsubsidized Federal Direct Loan

HOW TO APPLY

  1. Parents will need the student’s name, social security number, and date of birth to complete the application.
  2. Go to https://studentaid.gov/ The Parent must log in using their parent FSA ID and password. If you (parent) do not have an FSA ID, click on the Log In (blue button).  Then click on the “Create an Account” (button)
  3. Select “Apply for Aid”
  4. Select “Apply for a Parent PLUS Loan”
  5. Click on the Log In to START (blue button located to the right)
  6. Complete Parent PLUS Loan Application. This will determine whether you are approved or denied
  7. The cost of attendance minus any financial assistance awarded will determine the maximum amount that may be requested
  8. All Direct PLUS Loan borrowers must sign a Master Promissory Note (MPN). The Parent PLUS MPN must be completed before your loan funds will be released to the school. Please sign your Parent PLUS MPN at https://studentaid.gov/