Federal Direct Parent PLUS Loan

The Federal Direct Parent PLUS loan is part of a federal program and is available to the parents of dependent undergraduate students. This is a credit based loan, and the interest rate is determined annually by the Department of Education. Federal Student Aid, an office of the Department of Education, provides information on the most current interest rates. Repayment begins within 60 days of the second disbursement.

How to Apply

  • Submit the Free Application for Federal Student Aid (FAFSA). Include the American University FAFSA school code, 001434, in the school release section.
  • Complete and submit the Parent PLUS application and Master Promissory Note (MPN). The Federal Direct loan program will complete a credit check and notify you immediately if you are approved.
  • The Federal Direct loan program will forward your application on to our office to verify enrollment and eligibility. If eligible, a revised award letter will be available on the student portal once this has been reviewed.

PLUS Loan Denial

If your PLUS Loan is denied, then you may still be eligible to re-apply using an endorser (co-signer). If applicable, information about this option will be sent to you from the Federal Direct Loan program.

If you are unable to secure a PLUS loan, then your student may be eligible for an additional Federal Direct Unsubsidized loan of either $4,000 or $5,000. You will be given the option to pursue the additional unsubsidized loan upon notification of your credit denial by the Direct Loan program. The Financial Aid office will receive the notice of denial and your request for additional unsubsidized loan automatically from the Direct Loan program and an offer of that loan will be made to your student.