Federal Parent PLUS Loan
The Federal Parent Loan for Undergraduate Students (PLUS) is a loan the parent or stepparent of a dependent student can borrow to assist in meeting educational costs.
Like student loans, the parent loan has a 10-year repayment cycle. However, repayment is not delayed until after the student leaves school. Overall, the parent loan is a helpful way for families to address educational expenses through a low-interest loan that spreads costs over a longer period and allows for manageable, monthly payments.
ACCEPTING THE PLUS LOAN
The PLUS Loan is accepted, along with other aid offered to the student, via the UC online award offer. When accepting the loan, the parent provides their name and Social Security number in addition to indicating the desired loan amount. The Website will direct the parent borrower through the online PLUS process. Note: Use the continue button throughout the PLUS Website to complete all phases of the process and return to the award acceptance summary.
Parents can use our Money Matters publication to determine the amount they wish to borrow in a PLUS Loan. Simply estimate costs as directed and subtract other aid. Some families use PLUS funds to cover books and other non-billed expenses while other families are only looking to borrow for billed costs.
Parent loans are offered at the UC-budgeted estimate of educational expenses minus other aid. As a borrower, the parent may wish to borrow a lesser amount. Parents who later wish to raise or lower their annual PLUS Loan accepted amount can contact Student Financial Aid.
CREDIT CHECK
Each time a parent borrows or increases their PLUS Loan, a credit check is performed. Accepting a PLUS Loan from the award offer will route the parent through the process. Once approved, the parent will be asked if they still wish to borrow the PLUS Loan.
If the parent is denied a PLUS Loan based on credit, the student may be eligible for additional loan funds in the student's name. Any additional loan offer will be made upon credit denial of an accepted PLUS Loan.
MASTER PROMISSORY NOTE
The PLUS Master Promissory Note is an open-ended loan note that allows borrowing for multiple years. Acceptance of a PLUS Loan with UC and a credit check combines the parent loans borrowed for that student into one loan.
Parents who previously borrowed a PLUS Loan for that student will not need to complete an additional MPN. New parent borrowers who accept a PLUS Loan following the online credit check will be directed to electronically sign (using their U.S. Department of Education-issued PIN) or print and sign any necessary promissory note.
Only when the credit check and promissory note are both complete can PLUS Loan funds be sent to UC for the appropriate quarter.
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