At Montana State University, we encourage students and families to make informed decisions about financial aid. We highly recommend that you borrow only the amount of loans you need to successfully complete your education.

Federal Direct Parent PLUS Loans are loans parents may apply for on behalf of their student. PLUS loans are funded by the Department of Education and is offered automatically in the student aid package after having completed the Free Application for Federal Student Aid (FAFSA). Loans can be made to degree seeking students attending at least half-time (six credits).

What else do you need to know?

  • To be eligible to apply for the Parent PLUS loan, you must be the student’s natural or adoptive parent. A stepparent is eligible to borrow the PLUS loan, if his/her income & assets are reported on the FAFSA.
  • Loans are made to credit worthy borrowers; no adverse credit history.
    • Loans denied based on adverse history can still be made by appeal or securing an endorser.
    • For additional information about the process of using an endorser, the parent should contact the Direct Loan Servicer at 1-800-557-7394.
    • More information can be found by reviewing the PLUS Loan Basics.
  • Parent needs to complete a credit check application at https://studentaid.gov , logging in with their own FSA user name and password. Application opens May 1st for the following academic year.
  • The Department of Education will notify you automatically about approval or denial of your loan.
  • Students can receive an additional amount of unsubsidized loan when the PLUS loan is denied due to the adverse credit history. Freshman and Sophomores can received up to additional $4,000 while juniors and seniors can get up to additional $5,000.
  • Interest accrues on the loan while the student is in school. Begins on the date the loan first disburses and until it is paid in full.
  • Repayment begins 60 days after the PLUS loan is fully disbursed. The repayment term will be 10-25 years depending upon the type of repayment plan selected. There is no grace period for this loan.
    • Parents have the option to defer payments for PLUS Loans, provided the designated student is enrolled at least half-time (six credits) each semester. The parent should check the deferment box on their electronic loan application when submitting their application through StudentAid.gov to be eligible for the deferment.

Interest Rate and Fees

The Parent PLUS loan currently has a fixed rate of 9.083% for loans disbursed on or after July 1, 2024, and a loan fee of 4.228%.

Applying for Parent PLUS Loan

To apply for a Parent PLUS loan go to StudentAid.gov, use your FSA ID to sign in and then click on the Request PLUS Loan link. PLUS borrowers must also complete a Parent PLUS Master Promissory Note (MPN) at the same website. Additional information about the Parent PLUS Loan can be found here.

Parent PLUS Loan Instructions