Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education rather than a bank or other financial institution.
To apply for the Parent Loan, the parent must log on to studentloans.gov, select Apply for a Direct PLUS Loan, select Parent PLUS, and complete the application. If approved, the parent must complete the Master Promissory Note for Parent PLUS Loans online at studentloans.gov. After receiving a credit decision, complete and submit the Federal Direct Parent PLUS Loan Request Form, along with a copy of your parent’s valid government issued identification card (e.g., driver’s license, California Identification card, etc.) to the CSUDH Financial Aid Office. The Federal Direct Parent PLUS Request Form can be found on our Downloadable Forms page.
Yes. In addition to interest, you pay a loan origination fee of 4.228% (after October 1, 2020) of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. The fee is deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to pay.
The interest rate for 2020-2021 Direct PLUS Loans is a fixed rate of 5.30%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. To find out more information on interest rates for Direct PLUS Loans, contact the Direct Loan Servicing Center.
There are no set limits for Direct PLUS Loans, but you may not borrow more than the cost of education minus any other financial aid received, such as a Direct Subsidized or Unsubsidized Loan. Parent borrowers are eligible to borrow up to the students' cost of attendance minus other estimated financial assistance.
Undergraduate Commuter budget: | $18,311 |
Financial Aid Received (Student Loan) | - 3,500 |
Difference | 14,811 |
Parent PLUS Origination Fee (14,811 x 4.236%) | 627 |
Maximum Parent PLUS Eligibility | $14,184 |
All Federal Direct Parent PLUS loans will be credited directly to your student's account. If the amount of this loan exceeds the amount due on the student's account, the Accounting Office will prepare a balance check. This check will be made payable to the parent.
Your must begin repaying a Direct PLUS Loan 60 days after the full amount that you've borrowed for a school year has been disbursed. This means that in most cases, you must begin making payments while your child is still in school.
Generally, you will have from 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Your monthly payment amount will be based on how much you borrowed and how long you take to repay. You may choose one of three repayment plans:
You can find information about these plans by contacting by visiting StudentLoans.gov.
Yes, under some conditions you may receive a deferment or forbearance that allows you to temporarily stop making payments. For further information, please visit StudentLoans.gov.
You must repay your loan even if you child doesn't complete or can't find a job related to their program of study, or if you or your child are unhappy with the education you paid for with your loan. However, your loan may be cancelled if you have your loan discharged in bankruptcy, if you die, if the child for whom you borrowed dies, or if you become totally and permanently disabled (additional conditions apply). For further information, please visit StudentLoans.gov.
No. A Direct PLUS Loan is a loan made to a parent, not to a student. The parent is responsible for repaying a Direct PLUS Loan.
Visit StudentLoans.gov to get information on how to obtain a deferment or forbearance and much more.
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