Parent PLUS Loan 2020-2021

What is a Parent PLUS Loan?

The PLUS loan is a federally funded loan from the U.S. Department of Education for parents/stepparents of dependent undergraduate students. Stepparents are eligible as long as their information is included on the Free Application for Federal Student Aid (FAFSA). Students must be enrolled at least half-time (6 undergraduate units) for a parent to pursue the Parent PLUS Loan.

What will my interest rate and origination fee be?

Repayment is a fixed interest rate of 5.30% on all PLUS Loans disbursed on or after July 1, 2020, and before July 1, 2021.

Interest accrues on the unpaid balance of the loan from the date of disbursement by the school until the entire principal balance is paid in full. Failure to make monthly or quarterly interest payments results in the interest being capitalized (added to the principal of the loan). Currently, a 4.236% origination fee is deducted upfront of each disbursement.

How much money am I eligible to borrow?

Unlike other types of financial aid, the Parent PLUS Loan is not need based. The maximum eligibility amount is determined by the Student's Cost of Attendance minus any financial aid that the student has been awarded and accepted. The Parent PLUS loan can replace all or a portion of the expected resources. If the student will not be receiving financial aid of any kind, the parent can borrow the full cost of attendance. On the other hand, the parent does not have to apply for the entire amount. The parent should calculate the amount they need. Please refer to the students Award Offer on the SF State Gateway for the amount of Parent PLUS Loan that you are eligible to borrow.

How does the parent apply for the Parent PLUS Loan?

Step 1 -

  • Go to and log in with the borrower (parent) FSA User ID & Password
  • Once logged in, click on "Apply for a Direct Plus Loan"
  • For type of Direct PLUS Loan Application, select "START" under Direct PLUS Loan Application for Parents.
    • Award Year: 2020-2021

Loan Period Options:

  • Fall 20 to Spring 21 (08/2020 - 05/2021)
  • Fall 20 only (08/2020 - 12/2021)

After submitting the application successfully, the credit decision is displayed immediately on the next screen, if the credit is approved, this indicates you are eligible to borrow the Parent PLUS Loan.

Step 2 -

After the credit is approved, first-time Parent PLUS Loan borrowers must also complete an online loan agreement known as a Master Promissory Note. If the parent completed a Master Promissory Note for a previous San Francisco State University Graduate PLUS Loan, you may not need to complete this step.

  • Go to and log in with borrower (parent)FSA User ID & Password
  • Once logged, click on "Complete Loan Agreement (Master Promissory Note)"
  • For type of Direct Loan MPN, select "START" under PLUS MPN for Parents

* Note: After the parent has completed all the steps successfully, please allow up to 3 weeks for processing and for Parent PLUS loan checklist items to be updated from your To Do List.

What happens if my Parents PLUS application is denied?

Option 1 - Appeal:

  • Appeal the decision by calling Direct Loan Servicing Center at 1 (800) 557-7394
  • If the appeal is approved, you must complete an additional loan counseling known as PLUS Credit Counseling. PLUS Credit Counseling is a requirement if you had an adverse credit history but were able to document extenuating circumstances to the satisfaction of the U.S. Department of Education.
  • Go to and log in with the borrower (parent) FSA User ID & Password
  • Once logged in, click on "Complete PLUS Credit Counseling"

Option 2 - Endorser:

  • Secure an endorser willing to cosign the Parent PLUS Loan
  • The endorser will create an FSA User ID & Password
  • The endorser logins and click on "Complete an Endorser Addendum"
  • If the endorser is approved, the borrower (parent) must complete an additional loan counseling known as PLUS Credit Counseling. PLUS Credit Counseling is a requirement if the parent had an adverse credit history but was able to obtain an endorser.

Option 3 - Additional Unsubsidized Loan:

  • The parent accept the credit denial and the student requests an Additional Unsubsidized Loan
  • The student can request for Additional Unsubsidized Loans by contacting the Financial Aid Office and speaking to a financial aid counselor.
  • Please be aware that annual limits and a student's Cost of Attendance budget apply:
  • Freshmen and Sophomore class level maximum Additional Unsubsidized Loan: $4000 for the academic year
  • Junior and Senior class level maximum Additional Unsubsidized Loan: $5000 for the academic year

Option 4 - Undecided:

  • No action will be taken by the school.

What if the parent changes his or her mind about the Parent PLUS Loan after applying?

Approval of a Parent PLUS Loan application does not commit the parent to accepting the loan. If approved, the parent must contact Office of Student Financial Aid to cancel or reduce the accepted Parent PLUS Loan amount.

How will I receive my Parent PLUS Loan funds?

The Parent PLUS Loan is disbursed to the borrower (parent) or student depending on the refund preference selected on the Parent PLUS Loan Application. If the loan is a full year loan, the loan will be disbursed half in the Fall and the other half in the Spring semester. If the loan is for one-semester, the loan will be disbursed in one disbursement. If the student owes money to San Francisco State University, the university deducts all financial obligations and forwards the balance. A check is sent to the parent if the borrower (parent) is the refund preference. Otherwise, if the student is the refund preference, a check is sent to the student or direct deposit is initiated. We encourage students to sign up for direct deposit on the Student Center under the option to Enroll In Direct Deposit.

When will I have to begin repaying the Parent PLUS Loan?

Repayment and interest will apply to funds after the loan has been disbursed. The first payment of interest and principal are due within 60 days after the loan is fully disbursed. The parent may request an in-school deferment while the student is enrolled at least half time (6 undergraduate units). If the student drops to less than half time or withdraws during the period for which the loan was intended, the entire amount of the Parent PLUS Loan is immediately due.

What do I do if I want to make changes to my accepted loan?

You may fill out the Change Request Form to increase/decrease amounts, cancel undisbursed loans, and other related action items. Upon completing and signing the form, you may submit it via DocuSign, in person or through the mail. Do not email or fax this form to our office.