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Federal Loans to Parents

Colorado State University participates in the William D. Ford Direct Loan program (Direct Loans).  This means that the PLUS Loans we offer are funded by the Department of Education to the parent, on behalf of the student.  A PLUS Loan is automatically offered with the rest of a student's aid after submitting a FAFSA application. You, the parent, are responsible to repay your parent loans even if your student does not complete their program.  You are legally obligated to repay your loans so we encourage parents to fully read and understand the terms and conditions before accepting a loan. 

The minimum requirements for consideration of any federal loan is a completed FAFSA application, the student be admitted into a degree seeking program, and the student be enrolled at least half-time.  You must be the natural/adoptive parent or be a stepparent whose income information was included on the FAFSA to be an eligible borrower.

- Credit Information

  • A PLUS loan is contingent on a credit check of the parent borrower.  Parent PLUS Loans are not based on your credit score or income-to-debt ratio.  Parent PLUS Loans are approved for parents who do not have an adverse credit history.  Your loan will be reported to credit agencies and becomes a part of your credit history.
  • Federal regulation classifies an individual as having an adverse credit history if they are 90 days or more delinquent on any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a debt during the five years preceding the date of the credit report.
  • If it is determined that a parent has an adverse credit history, the parent will have the ability to obtain an endorser or the student can contact Student Financial Services regarding possible additional unsubsidized loan in the student's name.

- Interest Rate

  • Beginning July 1, 2013
    • Direct Parent PLUS Loans first disbursed on or after July 1, 2013 and before July 1, 2014 will have a fixed interest rate of 6.41 percent.
  • Beginning July 1, 2014
    • Direct PLUS Loans first disbursed on or after July 1, 2014 and before July 1, 2015 will have a fixed interest rate of 7.21 percent
  •  This loan is a type of unsubsidized loan so interest does accrue while your student is in school or if the loan is in deferment.

- Fees

  • First disbursements made on or after December 1, 2013 will have a loan origination fee of 4.288 percent.
  • Beginning October 1, 2014
    • Direct Parent PLUS loans first disbursed on or after October 1, 2014 and before October 1, 2015 will have a loan origination fee of 4.292 percent.

- Repayment and Deferment

  • Repayment begins 60 days after the loan is fully disbursed if the borrower does not request a deferment. The parent borrower can contact their servicer after the loan has disbursed to request a deferment for up to 6 months after the student leaves school or drops below half-time.  Interest will be capitalized at the end of the deferment period.

- Additional Information and Applying

  • To apply online for a Federal Direct PLUS loan through our Web site, Click Here.