Federal Parent Direct Loans enable parents with good credit histories to borrow funds to pay the educational expenses of their dependent undergraduate student (enrolled at least half-time).  Below are some basic facts about the parent loan:

• Requires a credit check
• Maximum amount a parent can borrow is the cost of attendance less any financial aid the student is expected to receive
• Variable interest rate not to exceed 8.5%
• Repayment begins 60 days after the loan is fully disbursed 

While federal student loans are not based on one's credit, a federal parent loan requires a credit check. There is also no grace period with a parent loan as there is with a student loan.

Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years. Interest begins to accumulate at the time the first disbursement is made. Parents must begin repaying both principal and interest while their student is in school.

With the 1.5% rebate, a fee of up to 2.5% is taken by the lender from the parent loan amount.

Eligibility for the parent loan is dependent on a satisfactory credit history. For more details, a parent should contact his or her lender.

If you apply for the Federal Parent Direct Loan and receive a denial letter, your student may submit a request for additional unsubsidized student loan funds.

No, a Free Application for Federal Student Aid is not required to receive a Federal Parent Direct Loan. However, students are encouraged to file for financial aid in order to take full advantage of other types of aid--including federal student loans that have better interest rates and repayment timeframes when compared with parent loans.

Parent loans are the financial responsibility of the parents, not the student. If the student agrees to make payments on the parent loan but fails to make the payments on time, the parent will be held responsible.

Parent loans are restricted to the parent or legal guardian of a dependent undergraduate.

• Variable interest rate not to exceed 8.5%
• Repayment begins 60 days after the loan is fully disbursed
• There is no penalty for early repayment
• The below table provides an estimate of the minimum monthly payment on a parent loan

• Your student must accept the parent loan award via My Financial Aid.
• You must complete and submit a Parent Loan Form. 
• From the information you provide on the Parent Loan Form, we will forward your parent loan request to your lender (the Department of Education) for a credit check.
• If you are not a first-time parent loan borrower, skip this step. If you are a first-time parent loan borrower, and once the credit check has been approved, you must complete a Direct Loan Master Promissory Note. The promissory note must be completed by you (the parent borrower). For you to complete and electronically sign the promissory note, you must have a FAFSA 4-digit PIN. The PIN may be requested at www.pin.ed.gov.
• To determine how your student applies your parent loan funds to his or her registration bill, visit Receive My Aid. Any parent loan funds in excess of the amount applied toward the registration bill will be forwarded to your address in the form of a check.