Federal Direct Parent Loan for Undergraduate Students (PLUS)


The Federal Direct Parent Loan for Undergraduate Students (PLUS) Parents may borrow funds to cover educational costs for dependent students. Borrowers must be U.S. citizens or eligible non-citizens. Students must be enrolled at least half time and maintaining Satisfactory Academic Progress for financial aid eligibility.  Parents can begin repayment when the loan is fully disbursed, with the first payment generally due within 60 days, or they can choose to begin repayment six months after the student is no longer enrolled at least half time or graduates. There is no financial need required to be eligible; however, total financial aid cannot exceed cost of attendance. The applicant’s credit history will be evaluated in determining loan eligibility.

In order for COTC to certify a PLUS loan, the student must have a FAFSA on file and be file complete. The parent may apply for a PLUS loan by going to https://studentloans.gov and completing the Parent PLUS application. Parents will use their FSA ID (same FSA ID used to sign the FAFSA) to login and request the Parent PLUS Loan, sign the MPN, and complete an Annual Student Loan Acknowledgment. Once the parent’s loan has been approved, COTC will receive notification and originate the PLUS loan. Maximum eligibility for the PLUS loan is the Cost of Attendance minus any estimated financial assistance.

The interest rate is fixed at 5.30% for Federal Direct PLUS Loans first disbursed on or after July 1, 2020 and before July 1, 2021.  For 2020-2021, the origination fee is 4.228% for loans disbursed prior to October 1, 2021. This fee is subject to change.  Origination fees are deducted from the gross amount of the loans before the disbursement of the loans.