The Parent Loan for Undergraduate Students (PLUS) is a federal low-interest loan designed to help parents cover the cost of their child’s education beyond high school.

• No financial need requirement: Eligibility is not based on financial need; however, the student must maintain satisfactory academic progress and meet enrollment requirements.
• Credit check required: The U.S. Department of Education will review the parent borrower’s credit history to determine eligibility.
• Who can borrow: The borrower must be the student’s natural or adoptive parent, or in some cases, a stepparent.
• Loan limits: Currently, parents can borrow up to the full cost of attendance, minus all other aid awarded. Starting July 1, 2026, parents will be able to borrow up to $20,000 per year per dependent student, or up to the student’s cost of attendance minus other financial aid—whichever is less.
• Aggregate limit: There is currently no aggregate limit, however starting July 1, 2026, the lifetime borrowing limit for Parent PLUS Loans is going to be $65,000 per dependent student.
• Legacy provision: If a borrower has a Parent PLUS loan made before July 1, 2026, while the dependent student is enrolled in a credentialed program, the parent can continue to borrow under current loan limits for 3 academic years or the remainder of their dependent student’s expected time to credential, whichever is less.
• Repayment responsibility: The parent borrower is responsible for repayment. Repayment begins once the loan is fully disbursed, unless the borrower requests a deferment.

Step by step process

Complete the FAFSA
The student begins by completing the FAFSA at studentaid.gov, and the parent fills out their portion of the application. Parents should wait until the student receives a financial aid award offer from ESU before proceeding with the PLUS Loan application.

Submit the Parent PLUS Loan Application
The parent completes the application at PLUS Loan Application. During this process, the parent will confirm details such as the loan period, requested amount, and how any excess funds should be handled. A credit check will be performed to determine eligibility.

Complete the Master Promissory Note (MPN)
The parent signs the Master Promissory Note for the Parent PLUS Loan at Completing a Master Promissory Note. This step can be skipped if an MPN was completed within the last 10 years, unless the previous note was valid for only one year.

Loan Disbursement
Funds are applied directly to the student’s billing account to cover outstanding balances. Any remaining funds will be refunded either to the student (via check or direct deposit, if set up) or to the parent by check.

Repayment and Deferment Options
Repayment begins once the loan is fully disbursed. Parents may request to defer payments while the student is enrolled at least half-time and for six months after the student is no longer enrolled. Interest accrues during deferment and will be capitalized if unpaid. Parents will receive quarterly interest statements and can choose to pay interest during deferment. A deferment request can be made on the application or by contacting the loan servicer.

Additional information:

• Visit the U.S. Department of Education website for the most up-to-interest rates and loan origination fees.
• When completing the PLUS Loan application and Master Promissory Note, the parent borrower must log in using their own FSA ID.
• If the parent’s PLUS Loan application is denied, the student may qualify for additional unsubsidized Direct Stafford Loans at the independent annual limits for their grade level.
• Parents have the right to cancel all or part of the PLUS Loan by contacting the Office of Financial Aid, Scholarships, & Veterans Services before disbursement or within 14 days after funds are disbursed.

Note:

If a student is eligible for the PLUS loan, the amount is calculated by taking the student's cost of attendance minus any other estimated financial assistance.  Once a loan has been accepted, the Office of Student Financial Aid and Scholarships will create a loan application with the Department of Education provided that the parent has completed a Master Promissory Note (MPN) and loan application.  These can be completed by going to https://studentaid.gov/. When completing the PLUS application and PLUS loan master promissory note, the parent borrower should log in to the website using their FSA ID.  If the parent applies for the loan and is denied, the student can be awarded additional unsubsidized Direct Stafford loans at the independent annual limits for their grade level.

You have the right to cancel all or a portion of the PLUS loan proceeds by contacting the Office of Financial Aid, Scholarships, & Veterans Services prior to disbursement or 14 days after disbursement.