Federal PLUS Loan

The Federal Direct PLUS Loan allows a parent to borrow money for the educational expenses of a child who is a dependent undergraduate student enrolled at least half-time.


  • Federally funded.
  • Non need-based.
  • Parent borrows on behalf of student.
  • The fixed interest rate for loans in the deferment or six month grace period is as follows:

    Disbursement Date Undergraduate %
    July 1, 2018 - June 30, 2019 7.6%
    July 1, 2017 - June 30, 2018 7%
    July 1, 2016 - June 30, 2017 6.31%
    July 1, 2015 - June 30, 2016 6.84%
    July 1, 2014 - June 30, 2015 7.21%
    July 1, 2013 - June 30, 2014 6.41%
    July 1, 2006 - June 30, 2012 7.9%
  • Effective July 1, 2013: Interest rates are adjusted yearly based on the 10-year U.S. Treasury note index rate. The interest rate cap for Federal Direct PLUS Loans is 10.5%.
  • Loan Origination Fees: 2018-19: 4.248%, 2017-18: 4.264%, 2016-17: 4.276%, 2015-16: 4.272%; no interest rate rebate.
  • Awarded up to the cost of attendance minus other financial aid received.
  • This is a loan your parent must repay to the U.S. Department of Education.


  • Undergraduate, dependent students only.
  • Must be enrolled at least half-time. Award will be canceled if enrollment falls below half-time.
  • Award eligibility based on estimated family contribution, cost of attendance, enrollment and other resources.
  • Award may be adjusted or canceled if there is a change to estimated family contribution, cost of attendance, enrollment or if you receive additional resources.
  • Student must be making satisfactory academic progress.

Application process

Please note that to apply for a Federal Direct PLUS Loan, you must complete our application.

  • A parent (biological, adoptive or a stepparent) must complete the Federal Parent PLUS Loan application and submit it to Student Financial Aid. We suggest beginning this process at least 4 to 6 weeks prior to the start of classes.
  • The financial aid office will verify the student is eligible for the Federal Direct PLUS Loan, then submit the application information to the Department of Education. The student may see the Federal Direct PLUS Loan on their financial aid award as "accepted." This means the Federal Direct PLUS Loan application is being processed. Please note that "accepted" does not mean that the loan is "approved".
  • The Department of Education will perform a credit check. Applications may be denied, approved or pending.
    • Denials: If denied, the borrower will be notified by the Department of Education and may appeal the credit decision or find an endorser. Or, the student may apply for an additional Federal Direct Unsubsidized Loan due to the Federal Direct PLUS Loan denial by completing the student financial aid adjustment form. The financial aid office will notify the student by email that we are unable to award their Federal Direct PLUS Loan and advise them of their options. If the parent borrower has not applied for an endorser or submitted an appeal, and the student has not submitted the application for additional unsubsidized loan within 30 days of the denial, our office will cancel the Federal Direct PLUS Loan.
    • Approvals: The parent borrower will receive the Federal Loan Disclosure Statement from the Direct Loan Servicing Center. The disclosure statement identifies anticipated disbursement dates, gross and net disbursement amounts and loan fee amounts.
    • Pending: The application may be delayed if there is an error on the application, or if a credit agency requests additional verification. If additional information is needed, the borrower will be notified via mail.
  • Parent borrowers must complete the Federal Parent PLUS Master Promissory Note required for first-time borrowers. The MPN will be sent to WMU automatically once it's completed. If the parent borrower completed the MPN for a Federal Direct PLUS Loan without an endorser, but then secured one, the borrower will need to submit a new MPN.
  • Once all requirements have been met, the Federal Direct PLUS Loan is ready to pay toward the student's account. Disbursement usually begins 10 days before the start of classes. Students will be notified via email anytime there is activity on their accounts.
  • If there is an excess of funds once the loan pays to the student's WMU account, a refund will be issued to whomever the borrower selected on the Federal Direct PLUS Loan application.
    • Borrower: If the parent selected "borrower," a refund check will be mailed to the parent.
    • Student: If the parent selected "student," a refund may be issued to the student electronically or through the mail depending on whether the student has signed up for e-refunds.

Changes to the PLUS loan

  • The parent borrower may complete the parent loan adjustment form if he or she wishes to cancel or reduce a loan that has not been disbursed to the student's WMU account.
  • If the loan has already disbursed, the borrower must complete the parent financial aid adjustment form within 30 days of the date of disbursement. Please note that canceling or reducing a disbursed loan may result in a balance due on the student's WMU account.


  • Federal Direct PLUS Loans first disbursed on or after July 1, 2008, can be deferred if the student is enrolled at least half-time, or during the six month period after the student ceases to be enrolled at least half-time. For more information, you can request a deferment based on the student's enrollment status. Interest will accrue during the deferment period.
  • Interest begins accruing upon disbursement.
  • Repayment of principal and interest begins 60 days after loan is fully disbursed.
  • The parent borrower will make payments to the loan servicer.
  • The interest rate for a direct consolidation loan is the weighted average of the interest rates on the loans being consolidated and is fixed for the life of the loan.

It is important that borrowers maintain important files and keep copies of the Master Promissory Note, borrower's rights and responsibilities and the Loan Disclosure Statement in one place as they provide loan details and a borrower's rights and responsibilities.