The Federal Parent PLUS Loan is a credit-based federal loan available to parents of dependent undergraduate students. Parent borrowers apply directly through the U.S. Department of Education, and the University of Iowa administers the loan.
Parent PLUS Loans may be used to help cover educational expenses not already covered by financial aid and other resources.
Federal Direct Parent PLUS Loan
- Available to parents of dependent undergraduate students enrolled in at least six credits each semester
- Parent borrower(s) must have a separate request for the Federal Parent Plus loan for each semester/session (fall, winter, spring, summer)
- Parent borrower(s) will be notified by Federal Student Aid immediately after completing the PLUS request if the credit check is approved or denied
- Interest begins to accrue when the loan is disbursed and will accrue through the life of the loan
Grace Period: None unless requested on application (repayment begins 60 days after the PLUS Loan is fully disbursed, unless deferment is requested, see loan deferment below).
Loan Deferment: May be requested on the PLUS application either while the student is enrolled in school or for six-month post-enrollment. If either option is selected on the PLUS application, your servicer will contact you before the loan enters repayment. If you (the borrower) are unsure who your servicer is, you can log onto studentaid.gov to view this information.
Changes to Parent PLUS Loans Beginning July 1, 2026
Federal law changed Parent PLUS Loan borrowing beginning July 1, 2026.
Parent PLUS borrowers are now grouped into one of two borrowing categories: Standard Eligibility or Legacy Eligibility.
Parent PLUS Borrowing Categories
| Borrowing Category | Annual Limit | Lifetime Limit | Availability |
|---|---|---|---|
| Standard Eligibility | $20,000 per student | $65,000 per student | Applies to most Parent PLUS borrowers beginning July 1, 2026 |
| Legacy Eligibility | Up to the student's cost of attendance, minus other financial | No federal annual or aggregate Parent PLUS limits | Available only to certain continuing students for a limited transition period |
Parent PLUS limits apply per student, not per parent.
If more than one parent borrows for the same student, all Parent PLUS borrowing is combined when determining the student's annual and lifetime eligibility.
Check MyUI Before Applying
Beginning with the 2026–27 academic year, students can view their Parent PLUS borrowing category on their financial aid offer in MyUI.
Possible loan statuses include:
- Standard Eligibility
- Legacy Eligibility
This status determines which federal borrowing rules apply to your family.
Legacy Parent PLUS Eligibility
Some continuing students may qualify for a temporary transition period that allows Parent PLUS borrowing under previous federal rules.
A student may qualify for Legacy Parent PLUS Eligibility if:
- The student remains enrolled in the same academic program, and
- The parent previously borrowed a Parent PLUS Loan for that student before July 1, 2026, or
- The student received a federal Direct Loan before July 1, 2026
Students who qualify may remain eligible for Legacy Parent PLUS borrowing for up to three additional academic years while continuously enrolled in the same academic program.
Standard Parent PLUS Eligibility is limited to $20,000 per student each academic year.
If the full annual eligibility has been used during fall and spring semesters, no eligibility will remain for summer borrowing.
How to Apply
- Your student must complete the Free Application for Federal Student Aid (FAFSA).
- Complete a Direct PLUS Loan Request for Parent Borrowers.
- Submit a separate requests are needed for each semester you wish to borrow.
- First-time Parent PLUS borrowers must complete the PLUS Master Promissory Note (MPN) for Parents.
- Request your loan amount.
- Consider the changes beginning July 1, 2026:
- Most borrowers are limited to $20,000 per year and $65,000 total per student
- If you qualify for the temporary exception, you may continue borrowing up to the full cost of attendance for a limited time
- You do not have to request the maximum amount. Consider borrowing only what is needed for the academic year.
- Consider the changes beginning July 1, 2026:
- When the MPN and all other requirements are complete, the loan money will be disbursed to the student’s University Bill prior to the start of classes each semester. Excess PLUS funds will be refunded as designated on the PLUS Loan Request application.
How the University of Iowa Processes Parent PLUS Loans
The University of Iowa processes Parent PLUS Loans by semester.
Parents who wish to borrow for both fall and spring semesters must submit separate loan requests.
For the 2026–27 academic year:
- Fall loan period: August 2026 through December 2026
- Spring loan period: January 2027 through May 2027
Summer Parent PLUS applications may be submitted beginning April 1 for students enrolled in summer coursework.
Before You Apply
To help avoid processing delays:
- Multiple Parent Borrowers – If more than one parent plans to borrow for the same student, contact our office before submitting applications.
- Correct Personal Information – Review Social Security Numbers, dates of birth, and other identifying information carefully before submitting your application.
- Loan adjustments – If you need to change a loan amount after applying, contact our office before submitting another application.
- Increase requests – Must come in writing (or by email) from the parent borrower.
- Reduction or cancellation requests – Can be submitted by the parent borrower (via the email used on the loan application).
- Who We Can Talk To – Federal privacy regulations limit what information we can share about Parent PLUS Loans.
Borrowing Considerations
Because Parent PLUS borrowing is now subject to annual and lifetime limits, families should consider their student's entire academic plan when deciding how much to borrow each year.
Before borrowing:
- Estimate your remaining educational costs.
- Consider future years of enrollment.
- Review payment plans and other financing options.
- Borrow only what is needed.
Plan for Future Years
A student who borrows the maximum annual amount each year under Standard Parent PLUS Eligibility may reach the $65,000 lifetime limit before completing a traditional four-year degree program.
Families who need funding beyond Parent PLUS Loan limits may wish to consider private loans or other financing options.
Frequently Asked Questions
How can I find out whether my student has Standard or Legacy Parent PLUS Eligibility?
Beginning with the 2026–27 academic year, students can view their Parent PLUS borrowing category directly on their financial aid offer in MyUI.
Possible statuses include:
- Standard Parent PLUS Eligibility
- Legacy Parent PLUS Eligibility
If you have questions about your eligibility status, contact our office.
What happens if I select "Maximum" on my Parent PLUS application?
If you select "Maximum," the university will determine the highest amount available based on federal borrowing limits and your student's remaining cost of attendance.
For most students, this means up to $10,000 for fall semester and up to $10,000 for spring semester.
Can I request a specific amount?
Yes.
You may request a specific loan amount. If you request more than your available eligibility, the loan will be reduced to the maximum amount permitted.
What if I need different amounts in fall and spring?
Uneven borrowing between semesters is permitted.
For example:
- Fall: $12,000; Spring: $8,000
- Fall: $7,000; Spring: $13,000
The combined amount cannot exceed your annual eligibility.
After submitting your applications, contact our office if you need assistance adjusting semester amounts.
What if I don't know how much I need to borrow?
Our staff can help you review your costs, available aid, and remaining balance to determine an appropriate borrowing amount.
How can I find out how much Parent PLUS eligibility remains?
We can help you understand your remaining annual eligibility, review prior borrowing, and discuss your available options.
Can I submit multiple Parent PLUS applications for the same semester?
We generally recommend submitting one Parent PLUS application per semester.
If you need to change your loan amount after applying, contact our office. In most cases, adjustments can be made without submitting a new application.
Does the $20,000 annual limit apply per parent or per student?
The annual Parent PLUS Loan limit applies per student.
If more than one parent borrows for the same student, all Parent PLUS borrowing is combined when determining the student's annual eligibility.
My parents are divorced. Can both parents borrow?
Yes.
If both parents meet federal Parent PLUS eligibility requirements, they may share the student's available Parent PLUS eligibility.
Combined borrowing cannot exceed the student's annual Parent PLUS eligibility.
What if I need more than $20,000?
Federal regulations do not allow Parent PLUS borrowing above annual limits.
Families who need additional funding may wish to explore:
Who can receive information about a Parent PLUS Loan?
Due to federal privacy regulations, we can discuss a Parent PLUS Loan with:
- The student
- The parent borrower associated with that loan
We cannot provide information about one parent's loan to another parent.
What to do if your Federal Direct Parent Plus Loan request is denied
Utilize Another Parent Borrower
The "parent" in Federal Direct Parent PLUS Loan references a biological, adoptive parent, or a step-parent. If one parent is denied, or unable to borrow for any reason, you may elect to have another qualifying parent or step-parent pursue the loan. They will need to complete a new PLUS request and Master Promissory Note (MPN) on studentaid.gov.
Obtain an Endorser (Co-Signer)
If the Direct PLUS application is denied, you can obtain an endorser. If you are going to obtain an endorser, the following three items must be completed.
- Endorser Addendum
- The endorser must complete an Endorser Addendum. An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower becomes delinquent in making payments or defaults on the loan. The endorser cannot be the student on whose behalf a parent obtains a Direct PLUS Loan.
- A New Master Promissory Note if You Pursue an Endorser
- You, as the borrower, will need to complete a Master Promissory Note (MPN) after the endorser completes their addendum. If you intend to have multiple (i.e., fall and spring) Direct PLUS loans endorsed, after completing one MPN, wait one week before completing another MPN.
- If you have technical difficulties completing the MPN, please contact the U.S. Department of Education's Student Loan Support Center at 1-800-557-7394.
- Direct PLUS Credit Counseling
- Direct PLUS Counseling is required for all borrowers who are initially denied due to adverse credit, but later approved with an endorser. It provides information on the obligations associated with borrowing a PLUS loan and assists in making careful decisions about taking on loan debt.
Seek a Credit Appeal
In some cases, you can document extenuating circumstances by submitting an appeal with the U.S. Department of Education via the studentaid.gov website. The Department of Education allows borrowers whose credit was denied the opportunity to document either of the following situations:
- Information showing that credit reporting used in the credit denial is incorrect and/or has been corrected.
- Extenuating circumstances exist relating to the adverse credit history of the primary PLUS borrower.
Direct PLUS Counseling must be completed for all borrowers who are initially denied due to adverse credit, but later approved through a credit appeal.
Additional Unsubsidized Loan Eligibility
If your credit was denied and you will not be using another parent borrower, obtaining an endorser, or seeking a credit appeal, your student can request that we review their eligibility for additional Direct Unsubsidized Loan funds. Students can request this by emailing financial-aid@uiowa.edu to let our office know that their parent was denied the PLUS loan, and they are interested in borrowing an additional unsubsidized loan.
9.07 %
for loans first disbursed
between 7/1/2026 - 6/30/2027
4.228 %
for loans first disbursed
between 10/1/2020 - 9/30/2026
Interest is additional money that you pay to a lender as a cost of borrowing money. Interest is calculated as a percentage of the unpaid principal amount that you borrowed.
Direct Loans are “daily interest” loans. On daily interest loans, interest accrues (adds up) every day.
An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan.
Federal loans have an origination fee; therefore, the amount your student may receive as a disbursement may be slightly lower than the amount you request.