To be considered for financial assistance at the University of Connecticut, your student must meet certain eligibility requirements. Please see the full list of Eligibility Requirements and Terms and Conditions on the Eligibility page.

The U.S. Department of Education’s Federal Direct Loan Program offers loans that need to be repaid with interest. Unlike most other federal programs, PLUS Loans are not awarded when the student applies for aid. Interested parents of dependent undergraduate students apply separately for the loan. Students must first complete the Free Application for Federal Student Aid (FAFSA) before parents can be considered for PLUS Loans.

The Federal Direct (Parent) PLUS Loan application is available April 1 of each year.

Apply

The parent(s) of a dependent student submit a PLUS Loan application by logging into the Federal Student Aid website using their FSA ID (not their student’s).

Complete Master Promissory Note (MPN)

Upon credit approval, Federal Direct PLUS Loan borrowers must complete a PLUS Master Promissory Note (MPN).

Denied Credit Check Options

If credit is denied, parents will be presented with four options at the end of the application process:

• I want to obtain an endorser.
  • This option requires the borrower to find an endorser (i.e. credit-worthy cosigner) to endorse a Direct PLUS Loan.
  • Borrowers must complete PLUS Credit Counseling.
  • Borrower must complete PLUS Master Promissory Note (MPN).
• I want to provide documentation of extenuating circumstances.
  • This option requires the borrower to Appeal Credit Decision.
  • Borrower must complete PLUS Credit Counseling.
  • Borrower must complete a PLUS Master Promissory Note (MPN).
• I do not want to pursue a Direct PLUS Loan at this time.
  • The student will be eligible for an additional Federal Direct Unsubsidized Loan (see details below.) Any additional loan eligibility will be offered to the student via the Student Administration (SA) System.

• Undecided.
  • Please contact the Office of Student Financial Aid Services to review the above options to determine which best fits the student’s financial situation.

Note:  If a parent’s PLUS Loan application is denied, the maximum additional amount of Federal Direct Unsubsidized Loan funds a dependent undergraduate student may be eligible for is:

The “Fed Parent Loan Eligibility” amount listed in the student’s award package represents the maximum amount an eligible parent(s) can borrow. It represents the student’s Cost of Attendance (budget) minus any financial aid offered. Although this amount represents the maximum an eligible parent(s) can borrow, families should always borrow the minimum amount needed to cover the student’s costs.
Eligible parent(s) should plan to borrow enough up front to cover both fall and spring costs. To help anticipate the student’s needs, please complete the Financial Aid Worksheet.

Notes:

• Required loan fees are deducted from each loan by the U.S. Department of Education before the proceeds are credited to the student’s account. More information about interest rates and fees is available on the Student Aid website.
• Federal Direct (Parent) PLUS Loan applications submitted without an amount specified cannot be processed until the parent borrower provides the Office of Student Financial Aid Services with written/email authorization to process the loan for the desired amount.

Disbursement

For more information about how the Federal Direct (Parent) PLUS Loan will disburse to a student’s fee bill, please visit the Steps to Aid page.

Refund of Credit Balance

During the PLUS Loan application process, the parent will be asked the following question:
“If there is a credit balance after your Direct PLUS Loan has been applied to the student’s school account, to whom do you want the school to pay the credit balance?”

• “The Student” means the student should receive the refund. Funds will be issued to the student by the Office of the Bursar.
• ‘Me’ means the parent borrower should receive the credit. If the Parent PLUS Loan was the last funding to be credited to the fee bill, the refund will be issued to the parent borrower. All refunds to the parent borrower will be mailed home to the address provided on the PLUS Loan Application.
• No changes to the person designated to receive the PLUS Loan refund can be made after the loan has been processed.

Repayment of Federal Direct PLUS Loan principal and interest begins sixty (60) days after the final disbursement for the loan period. Deferments are available for a parent who wishes to postpone repayment while the dependent student is enrolled at least half-time.

During the PLUS Loan application process, the parent borrower will be able to select whether or not to defer the loan. Interest continues to accrue on the PLUS Loan during periods of deferment or forbearance.

To learn more about understanding the options and responsibilities for repayment of loans, please visit the Federal Student Aid website.

For an estimate of monthly payments, please visit the Loan Repayment Estimator.