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Financial Aid

William D. Ford Federal Plus Direct Loan Program (For Parents)

For parent borrowers, the Direct Loan Program offers the William D. Ford Federal Direct PLUS Loan. These loans enable parents with good credit histories to borrow to pay the educational expenses of each child who is a dependent undergraduate student enrolled at least half time. To apply, the parent must complete the "William D. Ford Federal Plus Loan Processing Form" for the appropriate academic year. CUNY still requires that students complete the FAFSA if the parents wish to apply for the Federal PLUS Loan.

To be eligible to receive a Direct PLUS Loan, parents are generally required:

  • To pass a credit check. If they do not pass the credit check, they may still be able to receive a loan if someone, such as a relative or friend, is able to pass the credit check, agrees to cosign the loan and promises to repay it if the student's parents should fail to do so. Parents may also qualify for a loan even if they do not pass the credit check if they can demonstrate that there are extenuating circumstances.
  • Students and their parents must also meet other general eligibility requirements for federal student financial aid.

The yearly limit on either type of PLUS Loan is equal to the cost of attendance minus any other financial aid for which a student is eligible. For example, if a student's cost of attendance is $6,000 and the student is eligible for $4,000 in other financial aid, the student's parents could borrow up to, but no more than, $2,000.

The interest rate for Direct PLUS loans first disbursed on or after July 1, 2014 and before July 1, 2015 is 7.21%. The interest rate for Direct Plus loans first disbursed on or after July 1, 2015 and before July 1, 2016 will be 6.84%. Interest is charged on the loan from the date of the first disbursement until the loan is paid in full.

For loans disbursed on or after December 1, 2013 and before October 1, 2014, parents will pay a loan fee of 4.288% of the loan, deducted proportionally each time a loan disbursement is made. For loans disbursed on or after October 1, 2014 and before October 1, 2015 of the loan, parents will pay a loan fee of 4.292% of the loan, deducted proportionally each time a loan disbursement is made. A portion of this fee goes to the federal government to help reduce the cost of the loans. Also, if parents do not make their loan payments as scheduled, they may be charged late fees and collection costs.