PLUS Loans

Federal Direct Parent Loan for Undergraduate Student (PLUS)

The Federal Direct Parent Loan for Undergraduate Student (PLUS) is a loan for the natural parent, adoptive parent, or legal guardian of a dependent undergraduate student. In certain circumstances, a stepparent may be eligible to borrow.

Once you have applied for financial aid (refer to How to Apply), your parent will be sent a Direct PLUS Loan Credit Authorization to complete or click here to print a PDF. The parent borrower must have a good credit history in order to be able to borrow a PLUS Loan. If you have questions about your Direct PLUS Loan credit history, contact the Department of Education at 1-800-433-3243.

If the parent-borrower does not pass the credit check, the loan may be denied outright, or the parent may be offered the option of obtaining a creditworthy endorser.

The PLUS Loan interest rate is fixed. The interest rate is adjusted each July 1. You can find out the current interest rate on Direct PLUS Loans at or by contacting the Kettering College Financial Aid Office.

There is no grace period on a Parent PLUS Loan, so interest begins to accumulate at the time the first disbursement is made. Parent PLUS Loan borrowers whose loans were first disbursed on or after July 1, 2008, may choose either to begin repayment within 60 days of the final disbursement or to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after the student is no longer enrolled half-time. Interest that accrues during these periods will be capitalized if not paid by the parent during deferment.

Federal Graduate PLUS Loans

Federal Graduate PLUS Loans are available for graduate students to borrow for educational expenses. A student can apply for the loan in his or her own name as long as they are enrolled in an approved graduate program at an accredited institution. The process is primarily the same as for the Parent PLUS Loan, and as with the Parent PLUS Loan borrowers, the student borrower is not required to enter repayment immediately if they request a deferment.

Contact the Kettering College Financial Aid Office for additional information.

updated 2/17/12