Applying for a Federal Direct PLUS Loan (Parent Loan for Undergraduate Students)

Caution: Applying for a Federal Direct PLUS or private educational loan prior to receiving an Official Award Notice could result in the expiration of the credit check process, which is normally only valid for 90 days.

To apply for a Federal Direct PLUS Loan, a Master Promissory Note (MPN) is required.

This note incorporates multi-year functionality that will allow the student’s parent to borrow for multiple years without having to complete a Federal Direct PLUS MPN for each requested loan amount.

Application Steps

To apply for a Federal Direct PLUS Loan for Parents:

Parent go to https://studentaid.gov, select the “Parent” tab, and then select “Apply for a Parent PLUS Loan”.
Parent applicant must log in with their FSA ID and password.
Select the Start button to “Apply for a PLUS Loan”.
Once the Direct PLUS Loan Application is submitted, the parent applicant must also complete a Direct PLUS Loan Master Promissory Note (Direct PLUS Loan MPN).

This application will then be sent to the Financial Aid Office, where it will be reviewed. Once the loan is processed, an email notification will be sent to the parent borrower and the student.

Denied Federal Direct PLUS Loans

Dependent students whose parents are denied the Federal Direct PLUS Loan may be eligible to receive additional funds from the Unsubsidized Federal Direct Loan Program. A denial notice from the Department of Education will be provided to the school; at that time the eligibility for additional funds will be determined and processed according to the student’s request.

MPN Validity

The Federal Direct PLUS MPN is valid for up to ten years, provided that the parent borrows within one year from the date the MPN was signed.

Multiple Students

If the parent-borrower is applying for Federal Direct PLUS Loan funds for more than one student, a separate PLUS MPN, if needed must be submitted for each student.

Disbursement

Disbursement of Federal Direct PLUS Funds will occur as outlined below:

If approved, the Department of Education will electronically disburse the funds to Minnesota State Mankato.
If there is a balance owed on the student's account, Minnesota State Mankato will deduct the remaining charges from the loan.
If there are funds remaining after University charges are satisfied, those funds will be delivered to either the parent or the student depending on what was chosen in the application process.