Federal Direct Parent PLUS Loans (PLUS)

To apply for a Parent PLUS Loan, the borrower must:

• Be the biological, adoptive, or (in some cases) stepparent listed on the FAFSA
• Be the parent of a dependent undergraduate student
• Have a completed FAFSA on file

Credit Requirements

A credit check is required. If the parent has adverse credit history, they may still be approved by:

• Obtaining an approved endorser OR
• Documenting extenuating circumstances to the U.S. Department of Education

If a Parent PLUS Loan is denied, the student may be eligible for additional Federal Direct Unsubsidized Loan funding.

In the event a parent is ineligible to apply for a PLUS Loan due to being in default on a federal loan, the parent must notify the One Stop in writing at OneStop@MiamiOH.edu.

Beginning on July 1, 2026, federal law sets limits on Parent PLUS borrowing:

• Parents may borrow up to $20,000 per dependent student per academic year
• Total lifetime borrowing is limited to $65,000 per dependent student
• Loans may not exceed the student’s cost of attendance minus other financial aid received

Plan Ahead Before Borrowing the Maximum

Parent PLUS Loans can help families cover educational expenses not met by scholarships, grants, savings, payment plans, and student loans. Before borrowing, parents should consider the total amount they may need for their student’s full academic program, not just one year at a time.

For example, if a family borrows the maximum $20,000 per year for three years, it will have used $60,000 of the $65,000 lifetime limit. This would leave $5,000 remaining for the student’s final year.

Borrowing only what is needed each year can help preserve eligibility for later years in the program.

Loan Terms and Costs

• Interest begins accruing at disbursement
• A federal loan fee is deducted from each disbursement
• Interest rate is fixed annually by the U.S. Department of Education

Legacy (Transition) Provision

Some borrowers may qualify for temporary continuation of prior borrowing limits if specific conditions are met. To qualify, ALL of the following must apply:

• The student remains continuously enrolled in the same program of study at Miami University as of June 30, 2026 AND
• At least one of the following occurred before July 1, 2026:
  • A Parent PLUS Loan was disbursed for that program OR
  • A Federal Direct Subsidized or Unsubsidized Loan was disbursed for that program

If the above requirements are met, prior borrowing limits may continue for:

• Up to three years OR
• The remainder of the program’s published time-to-degree, whichever is shorter, provided continuous enrollment is maintained
  • Legacy eligibility is limited to the program’s published time-to-credential and may not exceed three years from July 1, 2026

Parents apply for a Federal Direct Parent PLUS Loan at StudentAid.gov. After your PLUS Loan application is approved:

• Complete the Parent PLUS Master Promissory Note (MPN) at StudentAid.gov.
• If required based on your credit decision, complete any additional federal requirements before your loan can be disbursed.

The Parent PLUS Master Promissory Note (MPN) is a legal agreement in which the parent borrower promises to repay the loan, including any accrued interest and fees.

In most cases, a completed MPN may be used for multiple Parent PLUS Loans over several years.

Special Application and MPN Situations

Some borrowing situations require additional steps when completing the Parent PLUS Loan process.

Borrowing for More Than One Student

A parent borrowing Parent PLUS Loans for more than one dependent student must complete a separate application and Master Promissory Note (MPN) for each student.

Two Parents Borrowing for the Same Student

If both parents choose to borrow a Parent PLUS Loan for the same student, each parent must complete a separate application and Master Promissory Note (MPN).

Parent PLUS Loans with an Endorser

If a Parent PLUS Loan is approved with an endorser because of adverse credit history:

• The Master Promissory Note (MPN) becomes a single-loan promissory note.
• Additional Parent PLUS Loans cannot be made under that MPN.
• The endorser is responsible only for the specific loan they agreed to endorse.

Parent PLUS Loans are typically disbursed in two equal installments (fall and spring).

• Funds are applied directly to the student’s account
• Any credit balance is refunded to the parent borrower unless otherwise requested

Parents may request cancellation or adjustment of a disbursed loan within 30 days of the disbursement notice by contacting the One Stop in writing at OneStop@MiamiOH.edu.

You can manage your loan at StudentAid.gov. Repayment begins:

• 60 days after the loan is fully disbursed OR
• May be deferred while the student is enrolled at least half-time (interest continues to accrue)

Parents may choose from available federal repayment plans after repayment begins. Repayment options depend on when Parent PLUS Loans were borrowed and whether loans are consolidated.

* Parent PLUS borrowers are only eligible for Income-Contingent Repayment (ICR) if the loans are consolidated into a Direct Consolidation Loan and the borrower enrolled in ICR before July 1, 2026.

Forgiveness/Cancellation: Eligibility depends on loan type, repayment plan, and federal requirements. Review StudentAid.gov for current eligibility information.

If repayment becomes difficult, deferment or forbearance options may be available through the loan servicer.

Important Note: Parent PLUS Loans disbursed before July 1, 2026 are subject to the federal repayment options that were in effect when the loans were borrowed. Parent PLUS Loans first disbursed on or after July 1, 2026 are subject to the repayment provisions established under current federal law.

Borrow only what is needed to cover educational expenses after scholarships, grants, and other aid. Before borrowing, consider:

• How much you need after scholarships, grants, and savings
• Your expected monthly loan payment after graduation
• Your anticipated salary in your chosen career
• Your long-term financial goals

Borrowing responsibly now can help reduce your monthly payments after graduation. Before accepting additional loans, review your current federal student loan balance and only borrow what you need.

You can view your federal student loan history, current balances, and loan servicer information by logging into StudentAid.gov with your FSA ID. You can also view your loans awarded through Miami in your loan summary portal.

Smart Borrowing Tips

Managing your student loans starts with understanding how borrowing affects your future. Use StudentAid.gov’s budgeting tools to help you plan while in school and after graduation.

• Understand Loan Details and Terms: Review your Entrance Counseling and Master Promissory Note (MPN) before accepting loans.
• Borrow Only What You Need: Limit borrowing to direct educational costs such as tuition and fees.
• Be Aware of Loan Costs: Remember loans must be repaid with interest and may include fees in addition to the amount borrowed.
• Borrow Within a Reasonable Future Budget: A general guideline is that your monthly student loan payment should not exceed 8 to 10% of your expected monthly income. 

Before accepting a loan, use the Federal Repayment Calculator to estimate:

• Your expected monthly payment
• Total repayment cost
• Repayment options available based on your loan type
• How additional borrowing may affect your future payments

Borrowers should fully understand the repayment options available to them. For more information, review the “Repayment” areas on our Federal Direct Student Loans and Federal Direct Parent PLUS Loans (PLUS) pages.

Additional information is available at StudentAid.gov.

The U.S. Bureau of Labor Statistics publishes estimated salaries for hundreds of positions and careers around the country. Research expected earnings in your intended career field to help you make informed borrowing decisions. Understanding your future repayment obligation can help you borrow only what you need.