Parent PLUS Loans
Parent PLUS loans allow parents to borrow money to help pay the educational expenses of their dependent undergraduate.
The maximum that a family can borrow is the total cost of attendance minus all other financial aid awarded to the student. 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 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 PLUS loan occurs.
Please be advised that online applications for Parent PLUS Loans will not be available until after June 1st for the upcoming academic year.
2022-23 Loan Information
Interest rates vary annually, with the rate fixed for the lifetime of the loan borrowed each year. For loans received between July 1, 2022 and June 30, 2023, the interest rate is 7.54%. The Department of Education also charges a loan origination fee that is deducted from your loan at the time of disbursement. The loan origination fee varies every year; for loans borrowed between October 1, 2020 and September 30, 2023, the rate is 4.228%.
Note: In response to the COVID-19 emergency relief period, the interest rate on all Direct Loans has been temporarily set at 0% until at least August 31, 2022. Once the COVID-19 emergency relief period ends, the rates as described in this announcement will be in effect for loans first disbursed on or after July 1, 2022.
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 for undergraduate or credential students and 4+ credits for graduate students).
- 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
- Accept your loans in the Financial Aid Awards section of your My Cal Poly Portal. If you do not want to borrow the full amount offered, you can reduce the amount.
- 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.
- 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.
- 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.
More information on Parent PLUS Loans
The Federal Government provides more information about Parent PLUS Loans.