PLUS Loans for Parents

Parents of dependent undergraduate students may apply for a Federal Direct PLUS Loan to help their student pay for education expenses not covered by other financial aid. A parent includes a student’s biological or adoptive parent, including stepparent if their information is included on the FAFSA.

In order for a parent to apply for a Federal Direct PLUS Loan, the student must submit the Free Application for Federal Student Aid (FAFSA) to UTA (federal school code 003656). The student must also be a dependent undergraduate student.

Parent PLUS Loans: Key Facts

The U.S. Department of Education is your lender.

The parent must not have an adverse credit history.

If a parent has an adverse credit history, they may still receive a Direct PLUS Loan through one of these two options:

1. Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay it (the endorser cannot be the child on whose behalf you are borrowing).
2. Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to your adverse credit history. Find more information about the appeal process.

Beginning July 1, 2026, the parent’s annual limit is $20,000 per student with an aggregate of $65,000 per student.

^*Legacy Provision

Undergraduate students who are currently enrolled and borrowed any type of federal student loan before July 1, 2026 while in their current undergraduate program may be considered.

Students with an existing Direct Loan in their current degree program may continue borrowing under current limits (up to cost of attendance) for up to 3 years (2026-2027, 2027-2028, 2028-2029) or until program completion, whichever is sooner. A Legacy Provision will end if the student takes a fall or spring semester off or withdraws for any reason including illness or personal.

The interest rate on Direct PLUS Loans is 8.94% for loans disbursed between July 1, 2025 and June 30, 2026, and starts accruing at time of disbursement.

A Direct PLUS Loan cannot be transferred to the child; the parent is the borrower and is legally responsible for repaying the loan.

If you are eligible for a Direct PLUS Loan, you will be required to sign a PLUS Master Promissory Note agreeing to the terms of the loan.