Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS Loan is a credit-based loan with a fixed interest rate of 7.08% for 2019-20. Default and up front origination fees of 4.236% (for loans made on or after October 1, 2019 and before October 1, 2020). Students must be enrolled at least half-time in a degree seeking program, be meeting the Federal Academic Progress Standards (SAP), and have a completed FASFA on file for parents to access a PLUS loan.  The parent borrower must be either a biological or adoptive parent, or step parent.  Parent borrowers and their student must also be U.S. citizens or eligible noncitizens and are not currently in default on Federal aid.  Through the Federal Direct PLUS Loan Program, parents of dependent students may borrow up to the cost of education less any other financial aid received by the student. You may indicate on your Federal Direct Parent PLUS Loan application that you would like an automatic deferment while your student is attending school and/or a request for a 6 month deferment post enrollment.  For additional information search the Federal Student Aid website.

If a parent is denied a Federal Direct Parent PLUS Loan, the student may automatically be considered for an additional unsubsidized Federal Direct Stafford loan in an amount up to $4,000/year for freshman and sophomores.  Borrowers also have the option to either appeal the credit decision with the U.S. Department of Education or get an endorser for the loan by choosing the associated bubble on the results page after submitting your online Federal Direct Parent PLUS Loan application  www.studentloans.gov.   The Financial Aid Office will also send an e-mail to those students whose parents were denied the Federal Direct Parent PLUS Loan. Students wanting the additional Unsubsidized Stafford Loan will be required to respond to the e-mail with their consent and amount requested.

If there is a Federal Direct Parent PLUS Loan denial and certification of an additional unsubsidized Federal Direct Stafford loan has occurred, the same parent borrower or another parent borrower can later appeal or seek an endorser and be approved.  If this is the case, the student’s undisbursed additional unsubsidized Federal Direct Stafford Loan will be cancelled.

Repayment Options:

Additional information regarding repayment can be found here.

How to Apply:

  1. First, complete the Free Application for Federal Student Aid (FAFSA).
  2. Then, calculate how much you want to borrow and determine the loan period. The total amount you can borrow is equal to your student's Cost of Attendance minus other Estimated Aid (these figures are listed on your student's Student Aid Summary on Pitt-Pay).
  3. Next, calculate the loan fee. Divide the total loan amount by 0.95752 (= 4.248%).
    Request $10,444 ($10,444*0.95752 = $10,000) to receive a total of $10,000
  4. Also provide the correct loan period. (Fall only (Aug - Dec), Fall/Spring (Aug - April), Spring only (Jan - April))
  5. Initiate a Federal Direct Parent PLUS Loan application and sign a master promissory note at www.StudentLoans.gov (if you have questions when on this site, you can reach a customer service representative at 1-800-557-7394).
  • Once on www.StudentLoans.gov, simply click on "Sign In" on the left side of the page; A parent must sign in using his/her Social Security Number and his/her FSA ID.
  • Note, do not use the student's FSA ID or SSN in this section.
  • Also, if you forgot or don't have a FSA ID, you can go to https://studentaid.ed.gov/sa/fafsa/filling-out/fsaid to request a duplicate or to create a new PIN.
  • After the parent signs in, click on "PLUS Loan Process/Request Direct PLUS Loan".
  • Complete the required items. Then, "submit" the PLUS Loan request.
  • If you are credit approved, you will then click on "Home" to return to the www.StudentLoans.gov homepage to continue to the next step of the Federal Direct Parent PLUS Loan process, which is signing a Federal Direct Parent PLUS Loan Master Promissory Note.
  • Click on the "My Profile" button found in the top box next to your name.
  • Click on "Complete MPN" or "Master Promissory Note".
  • Click on "Parent PLUS".
  • Complete the required items and then "Submit" the Master Promissory Note.

Please note that it can take approximately 4-6 weeks for a Federal Direct Parent PLUS Loan to be processed; parents are encouraged to file the application early to allow time for the loan funds to arrive at the school.

Directions for Changing your Federal Direct Parent PLUS Loan:

If you would like to change your Federal Direct Parent PLUS loan, the parent borrower must submit a written request to the Financial Aid Office.  Please be sure to sign the request and include a phone number where the parent borrower can be contacted.  If you would like to increase the Federal Direct Parent PLUS Loan and it is more than 90 days since the initial credit check was completed, the Parent Borrower will need to complete a new Federal Direct Parent PLUS loan application at www.studentloans.gov .

Federal Loan Servicers:  For questions about loan repayment or deferment, a borrower can contact his or her Federal Direct Parent PLUS Loan servicing center.  Not sure who your Federal loan servicer is?  Look it up on National Student Loan Database System, www.nslds.gov, or call the Federal Student Aid Information Center at 800-4-FED-AID.

Phone: (800) 663-1662
Web site: www.mycornerstoneloan.org

Phone: (855) 337-6884
Web site: www.edfinancial.com

FedLoan Servicing (PHEAA)
Phone: (800) 699-2908
Web site: myfedloan.org

Granite Slate - GSMR
Phone: (888) 556-0022
Web site: www.gsmr.org

Great Lakes Educational Loan Services, Inc.
Phone: (800) 236-4300
Web site: www.mygreatlakes.org

Phone: (888) 866-4352
Web site: www.mohela.com

Navient (formerly part of Sallie Mae)
Phone: (800) 722-1300
Web site: www.navient.com

Phone: (888) 486-4722
Web site: www.nelnet.com

Debt Management & Collections System
Phone: 800-621-3115
Web site: https://myeddebt.ed.gov/