Federal Direct Parent PLUS Loan Terms and Conditions

Interest rates

• 8.05% fixed interest rate for Federal Direct Parent PLUS loans first disbursed on or after July 1, 2023.
  
  
• 9.08% fixed interest rate for Federal Direct Parent PLUS loans first disbursed on or after July 1, 2024.
  
  
• Interest begins to accrue on the date of the first disbursement until the loan is paid in full.

Origination fee

• The origination fee is a percentage of the loan amount which is deducted proportionally each time a disbursement is made. This means the disbursed amount will be less than the amount accepted. Parents are responsible for repaying the entire amount they borrowed and not just the amount they received.

First Disbursement Date	Origination Fee
On or after Oct. 1, 2019 and before Oct. 1, 2020	4.236%
On or after Oct. 1, 2020 and before Oct. 1, 2024	4.228%

Repayment

• Repayment typically begins 60 days after the loan is fully disbursed.
• Parents may choose to defer payments.
• The loan servicer will notify the parent-borrower when the first payment is due.
• Parents choose a repayment plan and find out how and when to repay the loan.

Deferment

• Parents may request to defer repayment while the student is enrolled at least half-time, and for an additional 6 months after the student graduates or drops below a half-time status.
• Interest will continue to accrue during deferment.
• Parents may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends.