Federal Direct PLUS Loans

PLUS Loans are designed for parents of undergraduate dependent students to borrow funds to help pay for their student's college education.

Federal parent PLUS Loan for Undergraduate Students

One option to cover your student’s college expenses is the PLUS Loan. PLUS Loans are designed for parents of undergraduate dependent students to borrow funds to help pay for their student’s college education. You must be a U.S. citizen, or eligible noncitizen to qualify.


Eligibility is not based on financial need, however credit guidelines will apply in determining your eligibility. A parent with an adverse credit history who is denied a PLUS Loan will be notified of that denial. In the case of a denial, there is an option of obtaining an endorser. More information on this option is available at www.studentaid.gov. In the event that your credit is denied and the endorser option is not used, please contact the Financial Aid staff to request additional unsubsidized Direct Student Loan for the student.

Parents may borrow an amount equal to the cost of attendance minus any other aid. Consider your other loan payments when determining your borrowed amount and do not overextend your ability to repay your total indebtedness. If the PLUS Loan will be borrowed each year that the student is enrolled, please include those future loan amounts when determining your total indebtedness.

When to Apply

A credit review is required by the Department of Education as part of the PLUS application process. The credit review is valid for a period of 180 days, during which a Master Promissory Note (MPN) must be activated.

New College does not certify loans until mid-August before the start of the academic year. If we certify your loan after the credit review expires, the Department of Education is required to do another. A new MPN may also be required.

What Will You Need to Apply

Your Federal Student Aid ID (FSAID). Information on creating, using, or unlocking your FSAID can be found here.

Personal Information

  • Permanent address
  • Mailing address (if different from permanent address)
  • Telephone Number
  • Email Address
  • Alien Registration Number (if you are an eligible noncitizen)
  • Social Security Number

Employer Information

  • Employer Name
  • Employer Address

School Name

Student Information

  • Student first name, middle initial and last name
  • Student Social Security number
  • Student date of birth
  • Student address
  • Student telephone number

Reference Information

Reference Information for two people with U.S. address who have known you for at least 3 years. Do not list the Direct PLUS Loan borrower or the dependent undergraduate student as a reference.
• Reference Names
• Reference Addresses
• Reference Telephone Number

How to Apply

The student on whose behalf you will complete the PLUS loan application must have submitted a FAFSA for the current academic year. If selected, verification paperwork and supporting documents must be finalized. The student must also accept or decline their offered federal student loans before a PLUS loan can be certified and processed.

Click here to apply for a PLUS loan.

Please contact the Financial Aid staff once an application has been made. All new and continuing borrowers will be required to complete a Federal Direct Parent PLUS Loan Master Promissory Note (MPN);  this is required, even if you have borrowed from the Federal PLUS Loans in the past. All PLUS Loan borrowers must also complete the Parent PLUS Loan Authorization Form and return it to the Business Office.

Interest Rate
For Direct PLUS Loans first disbursed on or after July 1, 2021, and before July 1, 2022, the interest  rate is 6.28%.

Origination Fees
There is a loan fee on all Direct PLUS Loans. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. The percentage varies depending on when the loan is first disbursed:

— For a Direct PLUS Loan with a first disbursement date on or after Oct. 1, 2020, and before Oct. 1, 2021, the loan fee is 4.228%.

Loan Disbursements
The loan funds will be electronically sent to New College. The loan will be disbursed in two installments, half in the Fall semester and half in the Spring semester.

Repayment begins within 60 days after the final loan disbursement. There is no grace period for these loans. However, you may request a deferment in certain circumstances. In order to find out more information about repayment, please visit https://studentaid.ed.gov/sa/repay-loans/understand.