Skip to main content

Federal Direct PLUS Loans

Federal Direct PLUS Loans are low-interest loans available to parents to help meet their student's educational costs. These loans are borrowed directly from the U.S. Department of Education.

Parents may borrow the difference between the cost of attendance and all other financial aid the student has received. The Free Application for Federal Student Aid (FAFSA) must be filed to borrow a PLUS Loan.

Federal Direct PLUS Loans

• Loans in the parent's name, used for educational purposes.

• Loans not awarded as part of the student's initial Augustana aid package.

• Federal loans from the U.S. Department of Education.

• For additional Federal Direct PLUS Loan information, see Federal Student Aid.

Who is eligible

• Biological or adoptive parents of full-time or half-time students.

• U.S. citizens or eligible non-citizens (both parents and students)

• Annual FAFSA filers

Yearly borrowing limits

• A parent may borrow up to the cost of attendance minus the total financial aid student has received.

• The total of PLUS Loan and all assistance the student has received (including outside scholarship) cannot exceed cost of attendance. Your PLUS Loan amount may be reduced if your student receives additional aid after the PLUS Loan has been processed and disbursed.

Interest rates

• The interest rate for PLUS Loans disbursed between July 1, 2023, and June 30, 2024, is 8.05 percent fixed

• Interest rates on loans borrowed in previous academic years may vary.

• For additional information on interest rates click here.

Additional fees

• There is an additional 4.228 percent origination fee for PLUS Loans disbursed before Oct. 1, 2024.


Repayment begins 60 days after the loan funds for the year are fully disbursed. (within 60 days after the final disbursement).

Parents also may request a delayed repayment start date.

With deferment:

Repayment start date is delayed until six months after the student is no longer enrolled at least half-time.

Interest may be paid or capitalized upon loan entering repayment.

Deferment is granted for one year and must be requested for additional years.

Parent must contact their servicer to arrange a deferment.

How to apply for a Federal PLUS Loan:

1. Complete the FAFSA.

2. Complete all sections of the 2024-25 Federal Parent PLUS Loan Application online. The parent applying for the loan will need to have a valid FSA ID to log in and complete the application.

3. First-time borrowers must complete a Master Promissory Note (MPN). Once approved, follow the instructions below to complete the MPN. Note: the Federal Direct PLUS Loan will not appear as a credit on the student's account until the PLUS MPN has been completed.

Completing the Master Promissory Note

Please note: If your student is a returning Augustana student and you have previously borrowed a Federal Direct PLUS Loan at Augustana, you do not need to complete the MPN again.

By selecting the link below, you will be redirected to the Federal Direct PLUS Loan MPN site to complete your MPN. Select "Parent Borrowers," then "Complete Direct PLUS Loan Master Promissory Note (MPN)." The Office of Financial Aid will receive a notification you have completed your MPN.

• Sign in using your FSA ID. (Do not use your student's FSA ID.)

Create a FSA ID, if you do not have one, before you complete your MPN. ( Please note: the Office of Financial Aid does not have access to your FSA ID.)

Complete Federal Direct PLUS Loan Master Promissory Note.

When a parent borrows a Federal Direct PLUS Loan, and the loan is disbursed, the loan will be assigned to a servicer. To determine the servicer for your PLUS Loan, contact the Research and Customer Care Center at 800-433-7392 or email

Loan Servicer Contact Information

Loan not approved

If you are denied a PLUS Loan, your son/daughter may be able to receive up to $4,000 (for first years and sophomores) or $5,000 (for juniors and seniors) in an additional Unsubsidized Federal Direct Loan.