Getting a Federal PLUS Loan

The Federal PLUS Loan is designed to help parents of dependent undergraduate students pay for their child's education. There are two types of Federal PLUS Loans: the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. A Federal PLUS Loan may be used to pay for any portion of the student's expenses including tuition, fees, room and board.

Step 1 -- How to Obtain a Federal PLUS Loan?

In order to apply for a Direct PLUS Loan a parent must first request and then complete a Direct PLUS Loan application from the financial aid office at their child's college or university.

To apply for a FFEL PLUS Loan a parent must complete a PLUS Loan application, available from the financial aid office of their child's college or university, lender, or your state guaranty agency. The college or university will then complete their portion of the application and send it to a lender for review.

Step 2 -- Credit Check

Parents must pass a credit check in order to qualify for a Federal PLUS Loan. If they fail the credit check, they may still be eligible for a Federal PLUS Loan by having a friend or relative endorse the loan.

Step 3 -- Receiving the Loan

The college or university will receive the money from the loan and apply it to charges for the student. If money remains after this, the parents will receive the remainder in the form of a check or cash.

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