Parent PLUS loan approval can be near-instant for a credit check but processing by your school takes longer, often a few days to 2-4 weeks, varying with school volume; you get an immediate online decision, then the school processes it, potentially adding time for a PLUS Master Promissory Note (MPN) or credit denial follow-up.
Depending on the time of year, processing can take 2-4 weeks.
Log in to your StudentAid.gov account and check “My Activity” to see if your PLUS loan application is on file. Call your school for an update on your PLUS loan award.
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).
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.
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.
The "Parent PLUS loan loophole" refers to the "double consolidation loophole," a multi-step process allowing Parent PLUS borrowers to access cheaper income-driven repayment (IDR) plans (like SAVE) by obscuring the loans' origins, typically requiring two separate consolidations to bypass the normal restriction to Income-Contingent Repayment (ICR). This loophole, which involves consolidating loans into two separate Direct Loans and then consolidating those two into a final loan, has a deadline of July 1, 2025, to be completed to access benefits like potential loan forgiveness after 20-25 years, though its status is uncertain due to ongoing legal challenges.
A Parent PLUS Loan is anything but a plus for your financial goals. In fact, this kind of borrowing is a special kind of toxic because it involves a student and their mom or dad. The only thing worse than debt is the kind that hangs over a family relationship!
Any remaining loan funds will be paid to you directly, unless you authorize the school to pay this money to your child. 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.
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.
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.
Parent borrowers of Parent PLUS Loans have the option to sign up for direct deposit or refund. If you, the parent, have already claimed your NUID credentials, you'll receive an email with instructions on how to change your password with TrueYou and confirm your bank account information.
There are nearly 4 million Parent PLUS loan borrowers in the U.S. Recent data from the Department of Education (ED) reveals that as of Q4 2023, 3.8 million people in the U.S. were Parent PLUS loan borrowers. Over the last five years, the number of borrowers has increased by about 200,000 or 5.5%.
In the 2019-2020 academic year, 7.7% of dependent undergraduate students had parents who borrowed through Parent PLUS, with an average loan amount of $16,272.
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.
However, Parent PLUS Loans will be capped at $20,000 per student per year and a $65,000 lifetime limit beginning July 1, 2026. Parents who borrowed before that date can continue borrowing under the current limits for up to three additional years or until their student completes their program. Good news.
Unlike student loans, parents are fully responsible for repaying PLUS loans, often without an automatic grace period and with limited income-driven repayment options. High borrowing limits can encourage over-borrowing, sometimes without careful consideration of long-term debt-to-income ratios.
Get additional Direct Unsubsidized Loans.
But when you're denied for a parent PLUS loan, the school may offer your child the higher maximum amount of unsubsidized loans that is otherwise available only to independent students. Find info about Direct Unsubsidized Loans and how they differ from subsidized loans.