Parent PLUS Loans

Parent PLUS Loans allow parents to borrow money to help pay the educational expenses of their dependent undergraduate.

The amount a parent may borrow is limited by the student’s cost of attendance, other financial aid received, and applicable federal Parent PLUS Loan limits. Repayment begins 60 days after the loan’s final disbursement. Parent PLUS Loan borrowers may choose to have repayment deferred while their student is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time. 

The interest that accrues during these periods will be added to the original loan if it is not paid during the deferment. Deferment forms are available directly from the Parent PLUS Loan servicer, which will be assigned to the parent borrower by the Department of Education. The parent will receive information regarding how to contact the servicer once the first disbursement of the Parent PLUS Loan occurs.

Online applications for Parent PLUS Loans will not be available until after July 15 for the upcoming academic year.

Eligibility

To be eligible for a Parent PLUS loan, the student must:

• Meet basic federal eligibility criteria.
• File a FAFSA for the appropriate award year.
• Be enrolled at least half-time (6+ credits).
• Submit all required To-Do list documentation on your My Cal Poly Portal before applicable deadlines.
• Meet Financial Aid Satisfactory Academic Progress.

and the parent borrower must:

• Be a U.S. citizen or eligible non-citizen. Parents who are not U.S. citizens or eligible non-citizens are encouraged to contact the Cal Poly Financial Aid Office regarding other options.
• Have a valid Social Security number and favorable credit history. Parents with an adverse credit history may still be able to borrow with a cosigner.

Receiving Your Loan

1. The parent will need to complete the PLUS Loan application. Only one parent will need to apply for the loan by signing in with the parent FSA ID login and completing the Parent PLUS Loan application. The parent’s FSA ID login is the same set of credentials used to complete the student’s FAFSA application. The Parent PLUS application includes a credit check component, so you will need to complete any additional borrower requirements.
2. If this is your first PLUS loan for this student, you will need to complete a Master Promissory Note (MPN) online. This is the contract between you and the Department of Education. Be sure to complete the PLUS MPN for parents and not the MPN for subsidized/unsubsidized loans, which is used for student borrowers.
3. If the credit check is not approved, the parent will be asked to indicate one of the following:
   • They are going to pursue the loan by obtaining an endorser (co-signer). The parent will work directly with the origination center and Cal Poly will be notified once the loan is approved.
   • They are going to appeal the denial to the Department of Education. The parent will work directly with the origination center, and Cal Poly will be notified once the loan is approved.
   • They are not going to or cannot resolve the denial. The student will be given the option to accept an additional unsubsidized loan of $4,000 or $5,000 depending on their grade level.
   • They are unsure. Cal Poly will receive this response with the denial notice and will communicate with the parent via email asking them to notify us of the decision once they have decided if they are going to attempt to resolve the denial or not.