The Federal Direct Parent Loan for Undergraduate Students (PLUS) is a low interest loan program that enables parents of
dependent undergraduate students to borrow directly from the U.S. Department of Education to help pay for their student’s
educational expenses. The program is administered by the University of Massachusetts Boston Financial Aid Services Office,
which works with the U.S. Department of Education to offer this loan. Please refer to the following overview for important
information regarding the Federal Direct PLUS Loan Program.
FEDERAL DIRECT PLUS LOAN PROGRAM OVERVIEW
The Federal Direct PLUS Loan is a non-need based Federal loan program administered by the UMass
Boston Financial Aid Services Office. Parent borrowers are able to borrow loan funds for their
dependent student directly from the U.S. Department of Education. Detailed information regarding the
Federal Direct PLUS Loan Program can be found in the U.S. Department of Education brochure,
PLUS Loan Basics
, which is available online at
One parent of a dependent student acts as the borrower of the loan. If the parent borrower is denied
the loan (see creditworthiness) the parent may request an endorser (cosigner) to the loan. Upon PLUS
denial, the parent borrower or student may also contact Financial Aid Services to inquire about
additional Federal Direct Unsubsidized Student Loan under the student’s name.
Parent and student borrower:
Are U.S. citizens or eligible non-
Are not in default on prior
Borrows on behalf of
Meets federally defined
Is enrolled at least half-
time in a degree
Is Meeting Satisfactory
Has completed a FAFSA.
A parent borrower cannot be:
90 days or more delinquent on the repayment of any debt; or
The subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien,
wage garnishment or write-off of a Title IV debt during the last five years.
Annual Loan Limit
A parent borrower may borrow a maximum of the cost of attendance minus all other aid.
There is a 4% loan origination fee which is reduced from the total amount of the loan. There is also an
up-front 1.5% origination fee rebate that is retained by the borrower if the first 12 monthly payments
are made on time.
For all PLUS Loans made after 7/1/06, the interest rate is a fixed of 7.9%. Interest starts to accrue after
the first disbursement to the student account.
Repayment begins within 60 days of the loan being fully disbursed. Prospective parent borrowers may
receive additional information regarding repayment options by contacting the Direct Loan Servicing
Center at 1.800.848.0979 or at www.dl.ed.gov.
How to Apply
A parent borrower may download the Federal Direct PLUS Loan Application & Instructions at
www.umb.edu or request this information from Financial Aid Services. Federal Direct PLUS Loan
processing begins after July 1 for the upcoming academic year.
FEDERAL DIRECT PLUS LOAN APPLICATION & INSTRUCTIONS
Thank you for your interest in the Federal Direct PLUS Loan Program. In order to review your eligibility and
process this loan, please note there are TWO separate steps that must be completed by the parent borrower: