Federal Direct PLUS Loans
Additional loan types provided under the Federal Direct Loan Program include the Federal Direct PLUS Loans (for parents and graduate/professional degree students)
Parent PLUS Loan
The Parent Loan for Undergraduate Students (PLUS) loans are for parents of dependent undergraduate students enrolled at least halftime (6 credits) in an eligible degree program to help pay for their child’s education. Parents are the borrowers under the Parent PLUS loan program and are responsible for all interest charges and repayment of this loan.
The Financial Aid office will review the results of the student’s Free Application for Federal Student Aid (FAFSA) and determine the amount the parent can borrow. The loan is contingent upon credit approval. An approved credit decision is valid for 180 days prior to the first disbursement. For this reason, we recommend initiating your credit check after April 15th annually. A credit denial will alert the Financial Aid Office of additional unsubsidized loan eligibility to assist families with their direct cost to attend (see chart below). In order to apply, a parent must submit a Parent PLUS application online. First time Parent PLUS borrowers must submit a PLUS Master Promissory Note (MPN). Both the MPN and Parent PLUS Loan Application can be completed online at the studentaid.gov website.
| Parent PLUS Loan Credit Denial | |
| Undergraduate Student Status/Grade Level |
Additional Unsubsidized Eligibility |
| Freshman (0-29 credits earned)/ Sophomore(30-59 credits earned) |
$4,000 |
| Junior (60-89 credits earned)/ Senior (90+ credits earned) |
$5,000 |
Grad PLUS Loan
Graduate and professional degree students can borrow a Graduate Direct PLUS Loan to help cover education expenses. The Financial Aid office will review the results of your Free Application for Federal Student Aid (FAFSA) and determine the amount you can borrow. The terms and conditions applicable to PLUS Loans for parents also apply to Graduate PLUS Loan borrowers. The loan is contingent upon credit approval. An approved credit decision is valid for 180 days prior to the first disbursement. Both the Grad PLUS Application and MPN can be completed online at the studentaid.gov website.
Fees and Interest Rate Information
Fees and Interest Rates for Direct Loans first disbursed on or after July 1, 2023 and before July 1, 2024 is 8.05%. Loan fees are deducted proportionately from each loan disbursement. The fee amount for Federal PLUS Loans disbursed between October 1, 2020 an October 1, 2024 is 4.228%. For additional information regarding loan fees and interest rates, please visit studentaid.gov.
Once a PLUS Application is complete, the borrower will be notified by the Department of Education of the credit decision. If the credit decision is denied and the borrower does not wish to pursue an endorser, the loan will not be processed/received. The dependent student will then be awarded the additional unsubsidized loan amount based on their grade level and remaining eligibility. If the credit decision is approved, our office will be notified an the funds will be applied to the student's WIRED account. Kentucky State University will certify that actual loan amount that the student is eligible for based on the cost of attendance minus the amount of other financial aid an/or resources that the student has been awarded.
Options if the Federal PLUS Loan Credit Check is Denied
- Pursue an Endorser (credit-worthy co-signer). The U.S. Department of Education will send instructions on how to apply with an endorser.
- Appeal to the U.S Department of Education if there are extenuating circumstances. The U.S. Department of Education will send instructions on how to appeal a credit denial.
- Borrowers with an adverse credit history, including those who are initially denied an then approved on appeal or with an endorser must complete a "PLUS Counseling" session before funds can be disbursed to the student's account. PLUS Counseling is valid for 180 days.