Direct Parent PLUS Loans

Parent PLUS Loans are low-interest loans from the government that parents can get to help pay for their child's college.

Department of Education is the lender for all federal student loans. Loans are disbursed by the Department of Education to the University 10 days before the start of classes each semester. Additionally, loans are typically divided equally between fall and spring semesters. Unlike some private loans, there are no strict yearly or aggregate borrowing limits, except for the total Cost of Attendance as determined by the school.

When taking out a federal student loan, it's important to understand the terms and conditions. Origination fees apply, meaning a portion of the loan amount is deducted upfront to cover administrative costs.

Interest on the loan begins accruing right after the first payment is made to the school. Repayment options offer flexibility, including the choice to defer payments while still in school. However, it's crucial to note that interest continues to accumulate daily, based on the remaining amount borrowed.


  • Students must be enrolled in at least 6 credits in any given semester.
  • Students must be undergraduates.
  • Filed for Free Application for Federal Student Aid (FAFSA)
  • Students must have exhausted their eligibility for the Direct Stafford Loans.
  • Borrower must pass a simplified credit check.

How to Apply

UMB does not automatically award Parent PLUS Loans. Follow the following steps to apply for the Parent PLUS Loans. 

  1. Complete the FAFSA (Federal Title IV Code: 002104).
  2. Apply for Parent PLUS Loan on
  3. Complete Master Promissory Note (MPN) on
  4. The student request a Parent PLUS Loan Request Form from their UMB counselor.
  5. Turn in Parent PLUS Loan Request Form

Limits and Terms

The Parent PLUS limit is the total Cost of Attendance (as determined by the school) minus other aid received. 
(Cost of Attendance - Other Aid Received = Limit)


Term Percentage Rate
Annual Percentage Rate 8.05%
Origination Fee 4.228%

Credit Check and Denial

Parent PLUS Loan borrowers are required to pass a simplified credit check, meaning that the Department of Education is not looking for a certain credit score or for an extensive credit history, but simply the absence of an adverse credit history.

Criteria for Denial:

  • Current delinquency of 90 days or more, including unpaid collection accounts and charge-offs.
  • Default within the past five years or a defaulted loan that has been claim paid.
  • Bankruptcy (Chapter 7, 11, and 12) within the past five years (Chapter 13 is acceptable).
  • Discharge, foreclosure, foreclosure proceedings, deed in lieu of foreclosure, lease or contract termination by default, repossession, tax lien, wage garnishment, voluntary surrender, or write off of Title IV debt in the past five years.

Notification and Appeal:

Students denied a GradPLUS Loan will receive a notification letter from the Department of Education, with UMB notified electronically.

Appeal Options:

  • Review credit report for errors and appeal directly with the Department of Education.
  • Find a credit-worthy endorser to co-sign on the loan.

Endorsing a Parent Plus Loan

  1. Sign up for an FSA ID number at A FSA ID is required to electronically sign the endorser addendum.
  2. Sign onto 
  3. Enter Loan Reference Number (provided by parent borrower) and follow the instructions.