The Parent Loan for Undergraduate Students (PLUS) is an unsubsidized federal loan for parents that can be used to help pay for their undergraduate child’s education expenses that are not covered by other financial aid. Approval for this loan is contingent on a credit check of the parent borrower. The student must file a FAFSA for each year that a parent wants to borrow a PLUS Loan.
Parents should complete the PLUS Loan Application for the 2026-2027 academic year to begin the application process. The parent borrower will also be required to sign a PLUS Master Promissory Note (MPN).
The interest rate for PLUS loans disbursed on or after July 1, 2025 is fixed at 8.94%. Interest is charged from the date of the first disbursement until the loan is repaid in-full. The lender charges a 4.228% origination fee to process the loan.
Repayment begins within 60 days of the final disbursement for the academic year. Parents can contact their loan servicer to request that payments are deferred until 6 months after the student ceases to be enrolled at least half time.
Beginning July 1, 2026, federal law (One Big Beautiful Bill Act) introduces major changes to the PLUS Loan Program, including new borrowing limits and repayment restrictions.
New Borrowing Limits
The new statutory borrowing limits will primarily impact parents of students who first matriculate to Wabash in fall 2026, or parents of current students who have never borrowed a federal loan (student or parent).
- Annual Maximum Loan Limit: $20,000 per dependent student, per year
- Aggregate Loan Limit: $65,000 total per dependent student
Plan accordingly: If a parent borrows the maximum $20,000 annually, they will reach the $65,000 aggregate limit before a typical four-year program is complete. To ensure even eligibility across four years, parents should consider borrowing smaller annual amounts (approximately $16,250 per year over four years).
Legacy Borrowing Provisions
Some families may continue borrowing under pre-July 1, 2026 limits if specific conditions are met. Maximum eligibility under the legacy provisions is defined as total cost of attendance minus all other financial aid. Students cannot opt out of legacy provisions if they qualify.
A parent may qualify for legacy borrowing if:
- The student was enrolled in the program on or before June 30, 2026
- A Direct Unsubsidized, Subsidized, or Parent PLUS Loan was disbursed before July 1, 2026
- The student remains enrolled in the same program of study at the same institution
Legacy eligibility lasts for three years or until the end of the student's undergraduate program, whichever comes first.
Students lose legacy eligibility if they:
- Transfer to another institution
- Withdraw or cease enrollment in the program
Options if the PLUS Application is Denied
If the PLUS application is denied due to adverse credit (as determined by the Federal Direct Loan Center), three borrowing alternatives are in place:
- The student can receive an additional Unsubsidized Federal Direct Loan. Unless you indicate on the PLUS application that you plan to pursue the endorser option, our office will automatically review the student’s eligibility for the additional unsubsidized loan funds
- Up to an additional $4,000 for freshmen & sophomores
- Up to an additional $5,000 for juniors & seniors
- The student can decline the additional loan funds via his Wabash Self-Service account
- The parent can appeal the credit decision with the Federal Direct Loan Center. The process will require the parent PLUS borrower to complete Parent PLUS Credit Counseling. If the appeal is granted, contact the Financial Aid Office so that we know to proceed with processing the loan.
- The parent can apply with an endorser. An endorser is a co-signer on the PLUS loan and agrees to repay the loan if the borrower fails to do so. Our office will receive notification of an approved endorser at which point we can proceed with processing the loan.
亚洲通 encourage parents to be informed borrowers. Please review the Federal Direct PLUS Loan terms and conditions, including changes to repayment options as a result of the One Big Beautiful Bill Act.