Federal Direct Parent (PLUS) Loans

The Federal Direct Parent Loan for Undergraduate Students (PLUS) is meant to assist parents in covering costs beyond any student financial aid. The PLUS loan is credit-based and is held solely in the parent's (and endorser's, if applicable) name for the life of the loan.

How do I apply for this loan and am I an eligible parent borrower?
Both you, the parent borrower, and the student must meet the general eligibility requirements for federal student aid. For example, both must be a citizen or eligible non-citizen and may not be in default or owe a refund to any federal aid program. To be eligible to receive a Federal Direct PLUS Loan, you will be required to pass a credit check. If you do not pass the credit check, you may still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan, promising to repay it if you should fail to do so.

To apply, the parent will:

• Log into the Federal Student Aid website with the PARENT FSA ID.
  • Tips: Remember that the PARENT is the borrower and the STUDENT is the student.
  • Double-check the student's SSN on the application.
• Select the option "Apply for a PLUS Loan” under the tab “APPLY FOR AID." A credit decision is provided immediately upon submission of the application.
• If your credit check expires before the loan is processed by the Financial Aid office, then a new credit check will be performed by the U.S. Department of Education. This may occur if the decision is based on a prior credit check; credit checks are valid for 180 days.
• Complete the Master Promissory Note for the Parent PLUS Loan on the same website, if this is your first time borrowing a PLUS Loan for your Potsdam student and your loan is approved. (Please note, the parent approved for the loan must complete the Master Promissory Note). Select the “COMPLETE AID PROCESS” tab and then select “Complete Master Promissory Note.” Finally, make sure to select the “PLUS MPN for Parents”, which is the last option in the list of MPN choices.
• The loan application, credit decision, and Master Promissory Note are sent to SUNY Potsdam electronically.

If the parent's credit decision is denied, the parent may:

• Request an "appeal."If there are errors in your credit report, or extenuating circumstances exist relating to your adverse credit history, the parent borrower may choose to appeal. When you select "appeal decision", it will start the appeal process.
• Provide an endorser: The endorser must pass a credit check and sign a promissory note. An email with the Loan Reference ID will be emailed to the borrower. The endorser will need the Loan Reference ID to complete the Endorser Addendum online. The endorser must create a Federal PIN to sign in and go to "Endorse a PLUS Loan” under the “APPLY FOR AID” tab, or
• Not pursue the PLUS Loan: If the parent borrower is not interested in the first two options, the parent can select the option not to pursue the PLUS Loan; Student will then be offered additional Federal Direct Unsubsidized Loans. Additional loans are available for up to $4,000/academic year for 1st and 2nd year students (fewer than 57 credit hours earned); and up to $5,000/academic year for 3rd and 4th year students (57 or more credit hours earned).

What is the interest rate and what fees are charged for this loan?
Interest rates for all federal loans are set by Congress.

How much can I borrow?
Beginning July 1, 2026, the annual loan limit for the Parent PLUS loan program is $20,000 per dependent student. The aggregate limit is $65,000 per dependent student (total limit). It is important to plan accordingly as this new aggregate limit of $65,000 means that borrowing the annual maximum for a four-year undergraduate program will cause parents to reach the aggregate limit before the student completes their degree. 

Note: On the Parent PLUS Loan application, parents should only select the "maximum amount" option if they wish to borrow the full $20, 000 for the year. To ensure adequate Parent PLUS Loan eligibility for the duration of the student's undergraduate program, parents should request a lesser amount on the application. For example, request $16, 250 per year for total (aggregate) eligibility to be split equally for a four-year program.

Current SUNY Potsdam students may qualify for a limited exception to be eligible for the previous annual limit for a Federal Direct PLUS Loan that is equal to the student's cost of attendance minus any other financial aid the student received. 

• View Current Parent Loan Borrower Changes Summary (PDF)
• View New Parent Loan Borrower Changes Summary (PDF)

To qualify for this for the limited exception:
The student must remain continuously enrolled in the same program of study at the same institution as they were enrolled as of June 30, 2026, AND

• Either:
  • The parent borrower must have had a Parent PLUS Loan disbursed for that same program before July 1, 2026, OR
  • The student must have had a Direct Loan (subsidized or unsubsidized) disbursed for that same program before July 1, 2026.
• If the above requirements are met, the new Parent PLUS Loan limits do not apply while the student is completing their program, for up to 3 years, provided the student remains continuously enrolled (i.e., does not withdraw or otherwise cease enrollment outside scheduled breaks or non-required terms, such as summer).
   
• Parents of current students who do not currently meet these criteria can still qualify for this limited exception to the new loan limits if:
  • The parent borrows a Parent PLUS Loan prior to July 1, 2026, OR
  • The student borrows a Direct Loan (subsidized or unsubsidized) prior to July 1, 2026.

When do I begin repaying the loan?
Repayment begins 60 days after the loan is fully disbursed, or the student is no longer enrolled on at least a half-time basis (6 or more credit hours). For Fall/Spring loans, repayment would begin in mid-March.

Disbursement
Funds are normally disbursed in two equal installments and are credited directly to the student's account.

Repayment Plan Changes Apply to All Parent Borrowers
Any federal Parent PLUS Loans borrowed on or after July 1, 2026 (including federal consolidation loans that include Parent PLUS Loans) can only be repaid under a single new, fixed repayment plan.

What is changing?

• For Parent PLUS Loans taken out on or after July 1, 2026, the only repayment plan option available will be a new tiered standard repayment plan.
  • The tiered standard repayment plan offers a fixed monthly payment over 10 to 25 years, based on the outstanding balance of the loan(s).
• This applies to parent borrowers with existing Parent PLUS Loans who borrow a new loan on or after July 1, 2026, as well, because the law requires that all Parent PLUS Loans be repaid under the same repayment plan.
  • Parents who currently have Parent PLUS loans in repayment and borrow a Parent PLUS Loan on or after July 1, 2026, will have all of their Parent PLUS Loans moved to the tiered standard repayment plan, potentially changing the monthly payment amount.
  • Current Parent PLUS Loan borrowers may repay their loans under the following repayment plans until their loans are fully repaid, but only if they do not borrow new Parent PLUS Loans on or after July 1, 2026:
    • 10-year standard repayment plan
    • Extended repayment plan
    • Graduated repayment plan
  • Parent PLUS Loan borrowers who consolidated their Parent PLUS Loans into a Direct Consolidation Loan before July 1, 2026, may repay their loans under the income-contingent repayment (ICR) plan through June 30, 2028, at which point that plan will sunset, and Parent PLUS Loan borrowers repaying under ICR will be moved to the income-based repayment (IBR) plan.
    
    Parents who want access to an income-driven repayment plan and/or loan forgiveness for their Parent PLUS Loans must:
    • Have consolidated their Parent PLUS Loans into a Direct Consolidation Loan and enrolled in the income-contingent repayment (ICR) plan prior to July 1, 2026, AND
    • Not have borrowed a new Parent PLUS Loan on or after July 1, 2026.
      • Parent PLUS Loans and Public Service Loan Forgiveness (PSLF): The new tiered standard repayment plan does not count as a qualifying repayment plan for PSLF purposes. As a result, borrowing a new Parent PLUS Loan on or after July 1, 2026, prevents borrowers from receiving PSLF, even if they have already made qualifying payments, as all Parent PLUS loans must be repaid under the new tiered standard repayment plan.
        
        Parents who are planning to borrow a Parent PLUS Loan on or after July 1, 2026, but who want to preserve their eligibility for PSLF, may want to carefully consider other ways to help finance their dependent student’s education.