Parent PLUS Loan

The Direct PLUS Loan is unsubsidized, so interest accrues while the student is enrolled at least half-time and during deferment periods. Eligibility is not based on financial need. Through the 2025-26 academic year, graduate students and parents of undergraduates may borrow up to the amount of the student’s Cost of Attendance, minus any other financial assistance a student receives.  In some cases, these existing borrowers may be eligible to continue utilizing the PLUS program in this way for a limited time. Learn more on the Key Information for Financial Aid page.

New: Beginning in 2026-2027, new annual and lifetime borrowing limits will apply to this parent loan program with a few exceptions for current borrowers. For each dependent student, parents will be limited to borrowing up to $20,000 annually in parent PLUS loans. Additionally, parent borrowers will have a new overall borrowing limit in this program of $65,000. Students with more than one parent borrower will still be limited to $65,000 total in combined PLUS funds regardless of which parent or parents are borrowing. Contact the Office of Financial Aid if you have questions about your family's eligibility.

The Direct PLUS Loan may be of particular interest to students and parents who: 

• have unusual costs above the standard student expense budgets
• have remaining financial need after other forms of financial aid have been awarded
• would like to borrow all or part of the Student Aid Index

PLUS Loans offer advantages compared to private education loans, including the stability of federal funding, a fixed interest rate, and repayment and deferment options. See the Eligibility, Loan Terms, and Requirements section below and the Comparing Supplemental Loans page for details.

Students must submit a Free Application for Federal Student Aid (FAFSA) when their parent is applying for a PLUS Loan. Parent borrowers must have an acceptable credit history or a loan endorser with an acceptable credit history. Families with adverse credit may sometimes borrow under PLUS if they can document extenuating circumstances.

Key information about PLUS

• Because credit reports are only valid for a limited time and we process PLUS Loan applications in July, we wait until early April to accept PLUS applications so that only one credit check is required.
• We will assume that your application is for the fall/winter terms. If you want the loan for one term only, choose the correct loan period on the application and advise us as soon as possible. Final eligibility is determined when your application is processed in July.
• Contact our office if you require a paper PLUS Loan application (this option delays credit check results until the application is processed).

Eligibility Criteria

• Non-need-based
• Parent borrows on behalf of undergraduate student
• Student must be enrolled at least half-time in a degree program
• Borrower must be a U.S. citizen or eligible noncitizen
• Borrower cannot be 90 days or more delinquent on repayment of any debt (180 days on mortgage loan or medical bill payments) or the subject of a default, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt in the last five years

Loan Terms

Visit the Federal Student Aid website for the latest loan rate information.

Additional Information and Requirements

• Students must complete the Free Application for Federal Student Aid (FAFSA).
• First-time Direct Loan borrowers must complete an online Master Promissory Note.
• More information from the U.S. Department of Education

1. In mid-April or later, visit studentaid.gov. Do not use studentloans.com, which is a commercial website.
2. Sign in and select "Apply for a PLUS Loan" under the Parent Borrower section using your U.S. Department of Education FSA ID. If you need an FSA ID, create an account on the studentaid.gov website. Do not use your student's FSAID.
3. Follow the steps to complete the application and credit check. In the School Name section, be sure to select University of Michigan-Ann Arbor.
4. The results of your credit check will be available immediately. If your credit is approved, you will be given instructions for completing a PLUS Loan Master Promissory Note. If your credit is not approved, you will have the option to obtain an endorser, appeal the credit decision or not pursue the loan.
5. If you and/or your student are eligible non-U.S. citizens, you must also submit a copy of your U.S. Citizenship and Immigration Services document to the Office of Financial Aid to verify your current citizenship status. Copy both sides of the document, write the student's name and U-M ID on the copies, and fax them to our office at 734-647-3081 or email them to [email protected].

If you are a Direct PLUS Loan borrower, you will be required to complete three Direct Loan Program requirements: sign a master promissory note, complete entrance counseling and complete exit counseling.

Master Promissory Notes

Parents and students borrowing for the first time through the Direct Loan Program must complete a Direct Loan Master Promissory Note (or MPN) to receive their loan funds. The MPN authorizes U-M to credit the Direct Loan funds to the U-M student's account. Once you complete the MPN, you will not have to complete another Direct Loan MPN for 10 years. Visit the Master Promissory Note page for details about completing your MPN.

If you prefer, you may complete a paper MPN, but there are more steps involved before approval and your loans could be delayed. To complete a paper MPN, sign in at studentaid.gov. Select "Complete MPN" to complete the MPN electronically, or "Print MPN" to print, complete, and mail a paper MPN to our office.

Entrance Counseling

Entrance counseling is not required for most PLUS Loan borrowers. However, it is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have either obtained an endorser or documented any extenuating circumstances with the Department of Education. For more information, visit the Federal Student Aid website.

Note: Entrance Counseling is not the same as the Financial Awareness Counseling Tool on the same site. Taking a demo counseling session will not fulfill your requirement.

Exit Counseling

This is required for Direct Loan student borrowers who are graduating or dropping below half-time enrollment. This counseling session helps borrowers understand their rights and responsibilities in repayment and helps them choose a repayment plan. You must use your Department of Education FSA ID to access this counseling session. To complete the Exit Counseling session, go to the studentaid.gov website. Click the "Complete Counseling" link and follow the link to "Exit Counseling" to begin.

Note: Exit Counseling is not the same as the Financial Awareness Counseling Tool on the same site. Taking a demo counseling session will not fulfill your requirement.

You must sign all of your loan documents and students must be enrolled at least half-time to receive your loan funds. Direct PLUS loans are applied to the student bill. If there are excess funds after the bill is paid in full for the term, those will be released to the student unless the parent borrower has requested to receive the refund when completing the loan application. We strongly encourage students to set up Direct Deposit to receive refunds quickly and securely.

Federal PLUS loans are credit-based. If it is determined that you have an adverse credit history, you may still quality for a Direct PLUS Loan. Follow these instructions:

• Find an endorser with good credit (not the student for which the loan is being borrowed)
• Document extenuating circumstances to the U.S. Department of Education Office of Federal Student Aid. Visit studentaid.gov and select "Parent Borrowers" where you will find a link to "Document Extenuating Circumstances." Review does not guarantee approval; Federal Student Aid will determine your eligibility based on information provided.

In both cases, the parent will need to complete online PLUS Counseling at studentaid.gov.

If a parent is unable to secure a PLUS loan for a dependent undergraduate, the student is eligible for additional unsubsidized loans to help with education costs. This increase is not available if any parent passes the credit check or an endorser is approved. The student should contact our office for assistance.