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Federal Parent PLUS Loan FAQ's

The Federal Direct Parent Loan for Undergraduate Students (PLUS) helps parents assist with their student’s educational costs. PLUS loans enable parents with good credit histories to borrow to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time (six credit-hours).

Who can apply and what are the requirements?
How does the Direct PLUS Loan affect my financial aid?
What is the interest rate, origination fee and repayment for the Direct PLUS Loan?
What do I need to do to complete the Federal Direct Parent PLUS Loan?
What if the Parent PLUS Loan is denied?

Who can apply and what are the requirements?

Only the legal or adopted parents of the student attending UTSA are eligible to apply for the PLUS loan. People classified as grandparents, legal guardians, or extended family and friends are NOT eligible to pursue this loan.

  • Students need to be classified as a dependent student in order to be eligible to receive the PLUS loan.
  • Students need to be enrolled at least half-time (6hrs) per semester in order to be eligible to receive the PLUS loan.
  • Students need to be making Satisfactory Academic Progress (SAP) in order to be eligible to receive the PLUS loan.

How does the Direct PLUS Loan affect my financial aid?

  • Parents can generally borrow the difference between the university's cost of attendance minus the student's other financial assistance.
  • Filing the FAFSA is not a prerequisite for borrowing a PLUS loan, but families are encouraged to complete a FAFSA, so students can be considered for the maximum aid they may be eligible for.  Please note that if a student decides to pursue a PLUS Loan and has no FAFSA on file, there may be a longer processing time.

What is the interest rate, origination fee and repayment period for the Direct PLUS Loan?

  • The interest rate is 7.9%. The PLUS interest rate is a fixed rate and is set July 1st of each year. 
  • PLUS loans are subject to a 4% origination fee, however, there is a 1.5% interest rate rebate that helps reduce this fee.  Once repayment begins, you must make 12 on-time monthly payments to retain this benefit.
  • The repayment period for a PLUS Loan begins on the date of the final disbursement of the loan and the first payment is due within 60 days after the date the loan is fully disbursed. Although repayment does not begin until after the final disbursement, interest does accrue while the student is enrolled.  Parents must contact the Direct Loan Servicing Center at 1-800-848-0979 to request a deferment based on the dependent student’s enrollment status.

What do I need to do to complete a Federal Direct PLUS Loan Application?

Complete and turn in a UTSA Parent PLUS Request Form for the correct academic year to Enrollment Services at either the Main Campus or Downtown Campus. Original signatures are required on the form due to UTSA completing credit checks through the U.S. Education Department.  If the form is submitted incomplete, then please note this will delay the processing of your loan.

  • UTSA will notify the parent borrowers by email if they were approved or denied the PLUS Loan.
  • If the parent is approved for the PLUS Loan, then UTSA will include in the parent borrower's email a link to begin the electronic MPN (e-MPN) process.
  • Parent Borrowers will be required to complete the e-MPN with the Education Department in order to receive funds from the Direct PLUS Loan Program.

What if my parent is denied a Parent PLUS Loan?

  • The Federal Loan Origination Applicant Services (LOAS) will issue a loan denial letter that will identify the name and telephone number of the agency who provided the credit information. Please note that our office is not provided any information about the specific reason for the denial.

  • The Federal Loan Origination Applicant Services (LOAS) may be contacted at 1-800-557-7394 or you may write to the Direct Loan Origination Center at:
    Application Services
    P.O.Box 5691
    Montgomery, AL 36103-5691

  • UTSA will email the parent borrowers as well to inform them of their denial of the Parent PLUS Loan
  • Based on what the student & parent completed on the Loan Denial Follow-up Information Section of the Request form will determine how UTSA will proceed in awarding.
    • If the parent borrower chose the option to appeal the credit decision, UTSA will include in the email the steps that need to be completed to begin the appeal and/or the endorser process. Please note that choosing this option will require the parent borrower to pursue a reversal of the denial decision and/or a credit-worthy cosigner and students will not be award an additional Unsubsidized Stafford Loan.
    • If the parent borrower chose the option to award the additional Unsubsidized Stafford Loan to the student, then UTSA will award the student's account accordingly.