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Parent PLUS Loans

Federal Direct PLUS are non-need based loans available from the U.S. Department of Education for the parents of enrolled, dependent students. Under this program, parents can borrow up to the total cost of education minus their student's expected financial aid. Your child must have a Free Application for Federal Student Aid (FAFSA) completed, be admitted into a degree seeking program, registered at least half-time(6 credit hours), considered a dependent student(defined by FAFSA), not in default on any federal student loans or overpayment and meeting satisfactory academic progress.

Parent PLUS loan applications must first be completed at  www.studentaid.gov . Approved applications must be followed up with an Institutional PLUS Loan Update form, which is accessible via the student's "myTSU" student portal. Repayment begins 60 days after the loan is fully disbursed. Deferment options are available.

The PLUS loan application is available at studentaid.gov, a federal website where:

* Parents of Undergraduate students can complete an online PLUS credit application
* Endorsers co-sign for PLUS
* Borrowers can appeal credit checks during the application process
* Borrowers can complete PLUS Counseling
* Borrowers complete the Master Promissory Note (MPN)

Fees and Interest Rate Information:

Fees and Interest Rates for Direct Loans first disbursed on or after July 1, 2023 and before July 1, 2024 is 8.05%
Loan fees are deducted proportionately from each loan disbursement. The fee amount for Federal PLUS Loans first disbursed between October 1, 2020 and before October 1, 2023 is 4.228%.  For additional information regarding loan fees and interest rates, please visit studentaid.gov

Once you complete the application you will be notified by the U.S. Department of Education of the credit check decision. If you are denied and do not wish to pursue a credit decision appeal or use an endorser, you will not receive the parent PLUS loan. Your dependent student will then be awarded the additional unsubsidized loan based on their grade level and remaining eligibility. If you are approved, our office will be notified and the student will need to access their "myTSU" student portal to access and complete the Institutional PLUS Loan Update form.  T ennessee State University will certify the actual loan amount the student is eligible for based on the amount you request on the online application and the amount of other financial aid the student has been awarded.  

NOTE: New PLUS borrowers will be required to complete a PLUS MPN with their application.

Options if the Federal PLUS loan credit check is denied:

The borrower can apply for the loan with an endorser (credit-worthy co-signer). The U.S. Department of Education will send you instructions on how to apply with an endorser.
Appeal to the U.S. Department of Education if there are extenuating circumstances.  The U.S. Department of Education will send you instructions on how to appeal the credit denial.
Borrowers with an adverse credit history, including those who are initially denied and then approved on appeal or with an endorser must complete a "PLUS Counseling" session before funds can be disbursed to the student's account. PLUS Counseling is valid for 180 days.

Repayment of Federal PLUS Loans -  *This is a loan that must be repaid, including any interest accrued.