Parent Loan for Undergraduate Students (PLUS)
Parents of dependent students (as determined by the FAFSA) may borrow up to the financial aid cost of attendance less any other financial aid received. Only biological parents, legally adoptive parents, or stepparents may borrow this loan on behalf of their student.
Requirements
The parent borrower must be one of the following:
- A U.S. citizen
- A U.S. national
- A U.S. permanent resident
- A citizen of the Freely Associated States: the Federated State of Micronesia and the Republics of Palau and the Marshall Islands
- An eligible noncitizen (PDF)
Students must be enrolled at least half time to be considered for this loan. However, the loan is in the parent's name only. The Department of Education's Direct Loan Servicing Center is the holder of this loan when a parent enters into repayment.
Interest and Repayment
While the student is attending school, the interest accumulates on this loan.
The parent must either pay the interest on this loan quarterly to the Direct
Loan Servicing Center or you let the interest accumulate and capitalize.
Capitalized interest makes the loan payback more expensive over time.
No payment on the principal balance of the loan is necessary so long as the student remains half time (six credit hours undergraduate and five credit hours graduate). A deferment form can be found on the Direct Loan Servicing website.
The interest rate is fixed at 7.9 percent. Yearly loan amounts the parent may borrow depend on the student's credit hours enrolled per semester.
To Apply
The Parent PLUS Loan is offered to students when they apply for financial aid using the Free Application for Federal Student Aid (FAFSA). This does not mean the student/parent automatically qualifies for the loan.
- The parent must complete the Parent PLUS Loan Origination Worksheet (PDF) first. The parent can indicate on the worksheet how much he or she would like to borrow and allows UNLV Financial Aid & Scholarships Office to perform a credit check for the Parent PLUS loan eligibility. The U.S. Department of Education will notify the parent by mail if he or she was approved for the Parent PLUS Loan in about 10 business days via U.S. Mail.
- Assuming the Parent PLUS Loan is approved, the parent borrower must complete a Master Promissory Note online. The master promissory note is a legal document where the parent affirms to pay back the loan in the future. The parent will use the same four-digit PIN he or she used in signing the online FAFSA application for the master promissory note. No Entrance Loan Counseling Session is necessary for parents. If you lose or forget your PIN, you may obtain another one at www.pin.ed.gov.
Credit Check
A credit check is necessary to determine if the loan can be approved from the U.S. Department of Education. The UNLV Financial Aid & Scholarships Office does not see the parent's credit report or FICO scores. Our office only receives a "yes" or "no" notice regarding the application status of the loan from the U.S. Department of Education.
The credit check with the U.S. Department of Education is good for only 90 days. If the parent decides he or she has not borrowed enough later in the semester, another credit check may be necessary. Additionally, if the parent wants this loan each year, it will be necessary to apply with the Parent PLUS loan application worksheet each year.
A parent may use any creditworthy co-signer if he or she believes the likelihood of loan approval may increase. If the parent PLUS loan is declined, the student may borrow additional unsubsidized loan funds in his or her name.
Re-Application
Once a parent signs and completes a master promissory note online with the U.S. Department of Education, you do not need to complete another MPN as long as your student attends UNLV. The parent will, however, need to complete the Parent PLUS Loan Origination Worksheet each year if you (the parent) want to continue receiving a PLUS loan for your son or daughter in the future.
Payment of Cashiering Account
If the PLUS loan is large enough to pay the balance in the student's UNLV Cashiering account, the parent has two options:
- A refund check or direct deposit is produced to the parent for the student's educational expenses.
- The parent can allow UNLV to produce a refund check or direct deposit to the student. Your preference can be indicated on the Parent PLUS Loan Origination Application Worksheet (PDF) if you apply for the loan.
An example to determine how much a parent may borrow in a Parent PLUS loan, if necessary:
| Tuition & fees | $4,000 |
| Books | $1,000 |
| Room & board | $5,000 |
| Transportation | $1,000 |
| Miscellaneous | $500 |
| Total | $11,500 |
| $11,500 | (COA) |
| - $3,500 | subsidized loan offered to student |
| - $2,000 | unsubsidized loan offered to student |
| - $1,000 | scholarship offered to student |
| = $5,000 | up to potential PLUS loan borrowing by the parent |
