Discover federal loans for parents and grad students

The Federal Direct PLUS Loan program allows eligible borrowers to access federal education loans with fixed interest rates and repayment protections that are typically more favorable than private loan options. PLUS loans do not require demonstration of financial need but do require a credit check.

There are two types of PLUS loans:

If you’re financing your child’s undergraduate education, you can apply for a Parent PLUS loan.

Parents who borrowed a Parent PLUS Loan for the same dependent student prior to July 1, 2026 may qualify as legacy borrowers and continue borrowing under prior program rules, provided they remain eligible and the student continues to meet federal eligibility requirements.

You may choose to begin repayment immediately or defer payments until after your child leaves school.

Eligibility

To qualify, you must be the biological or adoptive parent of a dependent undergraduate student attending IU Indianapolis at least half-time. Parent PLUS Loans are credit-based and require a separate application.

See eligibility requirements for parents

Repayment

You may start making payments immediately or defer repayment until after your child leaves school or drops below half-time enrollment.

Changes to Parent PLUS Loans

Beginning July 1, 2026, Federal Direct Parent PLUS Loans will be subject to new borrowing limits. Eligible parents may borrow up to $20,000 per student, per academic year, with a lifetime maximum of $65,000 per student. These limits apply to total Parent PLUS borrowing across all institutions.

Parents who previously borrowed a Parent PLUS Loan for the same dependent student prior to July 1, 2026 may qualify as legacy borrowers. Legacy borrowers may continue to borrow under prior program rules, provided they remain eligible and the student continues to meet federal eligibility requirements.

Families are encouraged to plan ahead and explore additional payment options or alternative funding sources if educational costs exceed federal loan limits.

If you’re financing your own graduate education, the Federal Direct Graduate PLUS Loan allowed eligible students to borrow up to the cost of attendance minus other financial aid received.

Graduate PLUS Loans will no longer be available to new borrowers beginning July 1, 2026. Students who borrowed a Federal Direct Loan for their current graduate or professional program prior to July 1, 2026 may qualify as legacy borrowers and continue borrowing under prior program rules, provided they remain eligible.

Graduate and professional students who are not considered legacy borrowers should review their annual Direct Unsubsidized Loan eligibility and plan ahead for any remaining educational expenses. Additional funding options may include institutional payment plans, scholarships, employer tuition benefits, or private education loans.

Eligibility

To qualify prior to July 1, 2026, or as a legacy borrower after that date, you must be enrolled at least half-time in a degree-granting graduate or professional program at IU Indianapolis and meet federal credit and eligibility requirements.

See eligibility requirements for students

Repayment

Payments are automatically deferred while you are enrolled at least half time. Repayment begins six months after you graduate or drop below half-time enrollment. 

Changes to Graduate PLUS Loans

Beginning July 1, 2026, Federal Direct Graduate PLUS Loans will no longer be available to new borrowers. Students who borrowed any Federal Direct Loan, including Direct Unsubsidized or Grad PLUS, for their current graduate or professional program prior to July 1, 2026 may qualify as legacy borrowers.

Legacy borrowers may continue to borrow Grad PLUS Loans under existing program requirements for up to three additional academic years or until they complete their program, whichever comes first, provided they remain eligible. Students who do not meet legacy borrower criteria should explore other federal loan options, private loans, or alternative funding resources to cover remaining educational costs.

The amount you can borrow depends on the type of PLUS loan and your eligibility.

Parent PLUS Loans are limited to $20,000 per student, per academic year, with a lifetime maximum of $65,000 per student across all institutions, unless the parent qualifies as a legacy borrower under prior program rules.

Graduate PLUS Loans are only available to students who qualify as legacy borrowers and can go up to the remaining cost of attendance.

Loan funds are applied to tuition, fees, housing, food, and other eligible school charges. Any remaining funds after these charges are paid will be refunded to the borrower.

First, make sure you or your child have completed the FAFSA for the upcoming school year. Then, you’ll need to complete the application for the type of PLUS loan you’re seeking.

If you’re a first-time PLUS loan borrower, you’ll need to sign an online Master Promissory Note (MPN) agreeing to the loan terms. You’ll need your personal FSA ID to sign it.