Parent PLUS loan processing varies but generally takes a few weeks, from immediate credit decision to 2-3 weeks for school processing, with disbursements timed around school enrollment, often starting 10 days before a term begins, requiring separate steps like the MPN after application approval.
2. How long does it take to process a Federal Direct Parent PLUS Loan? Depending on the time of year, processing can take 2-4 weeks.
What's the status of my PLUS loan application?
Parent plus loans get denied because you have an adverse credit history--meaning a history of not paying your bills on time. The fact that you settled will eventually help your credit score but Parent Plus loans still consider it an adverse history. Them denying you might be for the best.
When do I have to begin repaying my loan? The repayment period for a Direct PLUS Loan begins immediately after you've received the last disbursement of the loan, while your child is still in school.
Federal Direct Parent PLUS Loan funds will be disbursed in the form of Electronic Funds Transfer (EFT) which are sent directly to the university. Each PLUS loan will be disbursed in two equal payments within the first week of each semester.
There is no minimum credit score required for a Parent PLUS Loan. However, borrowers cannot have an adverse credit history as defined by the U.S. Department of Education.
To be eligible for a Direct PLUS Loan for parents, you must be a biological or adoptive parent (or in some cases a stepparent), not have an adverse credit history, and meet the general eligibility requirements for federal student aid (which the child must meet as well).
Processing of your loan will initiate a credit check through the U.S. Department of Education. ASU will receive notification of the approval or denial of your Parent PLUS Loan in 5-7 business days.
Your credit score: Evaluating your 'creditworthiness' to see how much debt you have and how you've handled debt and repayments in the past. Your income: How much you earn will determine how much credit you can take on. Do you make enough money to repay your loan and still have enough left for other expenses?
Once you apply, it gets set to $0 while they run a credit check. If the credit check is approved, they send notice to complete the Master Promissory Note. The processing will not complete until that is returned. The full process takes on average 3 weeks.
Common Reasons a Mortgage Loan is Denied
In general, you will be denied if you have adverse credit consisting of any of the following: Bankruptcy discharge within the past five years. Voluntary surrender of personal property to avoid repossession within the last five years. Collateral repossession within the past five years.
How Much Do You Get if Denied Parent PLUS Loan? If a Parent PLUS Loan is denied, the student may qualify for additional Direct Unsubsidized Loan funds. The amount they can receive depends on their academic year: Freshmen and Sophomores may borrow up to $4,000 in additional unsubsidized loans.
Starting July 1, 2026, Parent PLUS Loans for undergraduates will have new limits: $20,000 annually and a $65,000 lifetime cap per student, replacing the previous unlimited borrowing up to the cost of attendance. Parents who borrowed before this date can continue under old rules for a few more years (grandfathering), while new borrowers after July 2026 will face these caps and standard repayment plans only, losing access to income-driven options.
Contact your school's financial aid office as soon as possible to let them know if you plan to pursue a Direct PLUS Loan by getting an endorser or by submitting documentation of extenuating circumstances.
The "7-year rule" for student loans generally refers to when negative marks, like defaults, are removed from your credit report (around 7 years after the first missed payment or default date for federal loans, 7.5 years for private loans), but the debt itself doesn't disappear and must be paid off; it's also a benchmark in bankruptcy proceedings where federal loans can become dischargeable after 7 years from when payments were due, though proving "undue hardship" is required and difficult.
Credit score: In general, you will need to have good to excellent credit, a FICO score of 680 or higher, to qualify. An excellent credit score paired with a high income will likely give you the fastest path to approval. Income: Lenders may set specific income requirements for you to qualify.