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Financial Aid

Federal Direct Parent Loan (Plus)

 

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The Federal Direct Parent PLUS Loan is a federal loan available to parents of dependent undergraduate students to help cover educational expenses not met by scholarships, grants, and student loans.

Parent PLUS Loans are provided by the U.S. Department of Education and are available regardless of financial need. Because this is an unsubsidized loan, interest begins accruing when the loan is disbursed and continues throughout the life of the loan.

You can learn more about this loan by visiting the Federal Student Aid website.

Quick Facts

  • Borrower - Parent or eligible stepparent of a dependent undergraduate student
  • Current Interest Rate - 9.07%
  • Origination Fee - 4.228%
  • Lender - U.S. Department of Education
  • Credit Check Required - Yes
  • Financial Need Required - No
  • Enrollment Required - At Least Half-Time
  • FAFSA Required - Yes

Eligibility Requirements

To receive a Parent PLUS Loan:

  • The student must be enrolled at least half-time.
  • The student must maintain Satisfactory Academic Progress (SAP).
  • The parent borrower and student must be U.S. citizens, nationals, or eligible non-citizens.
  • The parent borrower must not have an adverse credit history.
  • The student must have a FAFSA on file.

Borrowing Limits

Beginning with the 2026-27 academic year, federal regulations limit Parent PLUS borrowing to:

  • $20,000 per academic year per student
  • $65,000 aggregate maximum per undergraduate student

In addition, a federal loan origination fee of 4.228% is deducted before loan funds are disbursed.

How to Apply

Parents must apply for a Parent PLUS Loan each academic year. Applications for the upcoming academic year typically become available beginning May 1st.

  • Complete the Parent PLUS Loan Application
    • The parent borrower must complete the online Parent PLUS Loan application using their own Federal Student Aid (FSA) ID and password.
  • Complete the PLUS Master Promissory Note (MPN)
    • First-time Parent PLUS borrowers must complete a PLUS Master Promissory Note (MPN), which serves as the legal agreement to repay the loan.

Returning Parent PLUS borrowers generally do not need to complete a new Master Promissory Note unless requested by the U.S. Department of Education.

Loan Disbursement

Once approved and processed, Parent PLUS Loan funds are generally disbursed directly to the student’s IWU account and applied toward university charges. To ensure funds are available at the beginning of the semester, parents are encouraged to complete the application process as early as possible.

If a Parent PLUS Loan is Denied

If a parent is denied a Parent PLUS Loan based on the federal credit review, the student may become eligible for additional Federal Direct Unsubsidized Loan funds.

Additional annual borrowing limits may be:

  • $4,000 for first-year and second-year students
  • $5,000 for third-year and fourth-year students

If eligible, the Financial Aid Office will contact the student with instructions for accepting these additional loan funds through MyIWU.

Requesting a Change to an Approved PLUS Loan

Parents who wish to increase, decrease, or otherwise modify an approved Parent PLUS Loan should complete the Federal PLUS Loan Revision Form and submit the signed form to the Financial Aid Office.

Additional Resources

Parent PLUS Loans can be a valuable financing option for families who need assistance covering educational expenses beyond scholarships, grants, and student loans. Illinois Wesleyan University receives no financial incentive or benefit for processing Federal Direct Parent PLUS Loans.

Helpful Links

Alec Mucha headshot

Alec Mucha - Student Loan Coordinator

Department - Financial Aid