Federal Direct PLUS Loans | Financial Aid
General Information
- Federal loan program for parents
- Loan is in the parent’s name
- Student must be enrolled at least half time
- Approval based upon credit check
- Interest starts accruing at the time of disbursement
- Repayment
- Begins 60 days after funds have been fully disbursed
- Can request that repayment be deferred while student is enrolled at least half time
- Standard repayment is 10 years
- Additional Parent PLUS Information
Annual maximum: $20,000 unless meet legacy provision* below
Lifetime maximum: $65,000 unless meet legacy provision* below
Interest rate: Fixed rate of 8.94% for loans between July 1, 2025 and June 30, 2026. Fixed rate of 9.08% for loans between July 1, 2024 and June 30, 2025.
Fees: 4.228% is deducted from the loan proceeds for loans first disbursed after Oct. 1, 2020 and before Oct. 1, 2026. For example, on a $10,000 PLUS loan, $423 will be kept as a loan fee and therefore $9,577 will be credited to students account when it is disbursed to the school.
Applying for a Parent PLUS Loan
- Student must complete the Free Application for Federal Student Aid (FAFSA) at studentaid.gov/fafsa
- Student must be meeting Satisfactory Academic Progress (SAP) Standards.
- Neither the student or the parent can be in default on a Federal Student Loan or owe an overpayment on a Federal Student loan or grant.
- Complete the Parent PLUS application process at studentaid.gov. You will need to login to this site by clicking the blue "Log In" button.
- Complete the Parent PLUS MPN (Master Promissory Note) at studentaid.gov. You will need to login to this site by clicking the blue "Log In" button.
- If you are approved, the funds will be disbursed directly to the school and credited to the student's business office account
- If the PLUS funds cause a credit to the student's account, you will be issued a refund check unless you have given Carroll permission to release the refund to the student
Denial of Parent PLUS Loan
Student is eligible for additional Unsubsidized Direct Loan funding ($4,000 for Freshman and Sophomore; $5,000 for Junior and above)
*Legacy Provision
The One Big Beautiful Bill Act (OBBBA) signed in July 2025 introduced several changes to federal student loans beginning July 1, 2026. If parents & students meet legacy provisions, the changes may not apply. Please Note: Federal guidance continues to evolve as the U.S. Department of Education finalizes implementing regulations. Information reflects the most current guidance available.
To qualify for legacy provision:
- Any Federal Direct Loan funds, student Subsidized/Unsubsidized or Parent PLUS, were disbursed to the student’s account prior to July 1, 2026.
- Student is enrolled in the same degree type (bachelor, associate) as they were prior to July 1, 2026.
If you qualify for legacy provision:
- Annual maximum is student’s Cost of Attendance minus other financial aid.
- No lifetime maximum applies.
- Parent can borrow under the legacy provision for the lesser of 3 academic years or the remainder of the student’s current program.
