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PLUS loans for Parents and Graduate Students

PLUS Loan Basics

Parents of a dependent undergraduate student may apply for a PLUS loan to help meet the student's cost of attendance not covered by other financial aid.  Interest rates and repayment provisions on PLUS loans are generally more favorable than other consumer loans available for educational expenses. A FAFSA need not be completed, but parents must submit a PLUS loan request form to the Office of Scholarships and Financial Aid for certification of the student's cost of attendance as well as other anticipated financial aid.

Credit History

Parents are also required to pass a credit check when they are applying for the PLUS loan. If a parent's application for a PLUS loan is denied based on the borrower's credit history, the student may become eligible for an additional unsubsidized Stafford loan. Freshmen and sophomore students can borrow up to $4000 in a Federal Stafford loan, while juniors and seniors could borrow up to $5000. If you feel that your parents' credit history would prevent them from borrowing PLUS loans, you may complete a PLUS loan pre-screening form with any PLUS lender.

PLUS loans for Graduate Students

The Federal Graduate PLUS Loan is a Federal loan program which allows Graduate and Professional students to borrow a low interest federally backed student loan when Stafford loan eligibility has been exhausted. Like the Parent PLUS Loan, the Graduate PLUS Loan can be used to pay for the total cost of attendance minus any financial aid you've already been awarded. Also like the Parent PLUS Loan, eligibility for the Graduate PLUS Loan is largely dependent on the borrower's credit rating and history. There is no form to submit to NC State; students borrowing through the Direct Loan program should contact the Office of Scholarships and Financial to request the amount they want to borrow and go to https://dlenote.ed.gov/empn/index.jsp to complete the Master Promissory Note. Students using any other lender should apply directly with their lender. Graduate PLUS borrowers must complete Entrance Loan Counseling.

Interest Rates

PLUS loans have a fixed interest rate of 8.5% (Federal Direct loans 7.9%). Interest is charged from the date of disbursement until the loan is paid in full. For PLUS Loans disbursed between July 1, 1998 and June 30, 2006, the interest rate is variable and is determined on July 1 of every year.

Application Process

  • The parent borrower submits a PLUS loan request form to the Office of Scholarships & Financial Aid (GradPLUS borrowers start by contacting their lender directly)
  • The Office of Scholarships & Financial Aid will certify with the chosen lender the parent’s PLUS eligibility for the amount request or the maximum eligibility, whichever is less.
  • The Office of Scholarships & Financial Aid will send an award letter to the student confirming certification of the Federal PLUS.
  • Lender will review borrower’s credit history to determine eligibility.
  • Once the lender has approved the PLUS loan, the lender will send a “Master Application and Promissory Note for Federal PLUS loan” to the borrower’s permanent address. 
  • The parent/student must complete the Borrower and Student sections on the Master Application and Promissory Note
  • The parent/student returns the Master Application and Promissory Note directly to the lender.
  • The Lender/Guarantor will send the “Notice of Loan Guarantee and Disclosure Statement” to the borrower.
  • The lender will send loan disbursements to NC State in accordance with the disclosure statement schedule.
  • Loan proceeds will be used to offset any charges on the student’s billing account in the University Cashier’s Office.
  • If there are remaining funds available after University charges are paid, you can have these funds sent via Direct Deposit to either the parent's or the student’s checking account. The excess funds can only go to ONE designated Direct Deposit Account.

Choosing a PLUS lender

Many families want guidance in deciding which lender to select. Please see below for a list of PLUS lenders that parents and graduate students have used in the past: