United States Department of Education - Federal Direct Parent PLUS Loan

What the Parent PLUS Loan gives you

This is a loan from the US federal government which enables parents to borrow money to fund their child’s undergraduate studies at the University of Edinburgh. A parent may borrow up to Cost of Attendance, the total cost of the academic year. This amount covers tuition fees, visa and health insurance surcharges for the first year, airfares, living costs and the loan fees, less any other financial support the student is already receiving. There is no separate annual cap. The loan is provided directly by the US Department of Education, not by a private bank. Repayment is made by the parents, not by the student, and includes interest and a one-off processing fee (a small percentage deducted when the loan is disbursed). The interest rate and fee are set each year and published on studentaid.gov.

Who can apply

• Who borrows: A parent of a dependent undergraduate student enrolled at the University of Edinburgh.
• Nationality: Both parents and pupils must be US citizens or eligible non-citizens with a valid Social Security number.
• Credit: Parents must pass a credit check. They must not be in arrears with repayments on a US federal student loan, nor must they have any outstanding repayment obligations arising from a federal grant.
• Study mode: The student is studying on campus, on at least a part-time basis, and is fully enrolled.
• Prior study: The pupil holds a school-leaving certificate or an equivalent qualification and achieves satisfactory marks.
• Eligible programme: Most courses on campus are eligible for funding. Online and distance-learning courses are excluded. Certain degree programmes are also excluded, such as the MBChB programme at undergraduate level, the Bachelor’s degree programme in Nursing, and all diploma and certificate programmes.

How to apply

The student must first submit the FAFSA application on studentaid.gov (Edinburgh’s school code is G06839) and then send a US loan application form to the university. For the loan itself, a parent must sign a Master Promissory Note each year, providing a US postal address. Parents must also complete a PLUS loan counselling session if required following a credit check. The university then calculates the cost of study and sends a financial aid package for confirmation.

How realistic are your chances?

This is not an award presented as part of a competition. It is a loan available to all parents who meet the criteria; there is therefore no selection process. The main requirements are a credit check on the parents and the stipulation that both the parents and the student must be US citizens or have lawful status with a Social Security number. If your child is enrolled on an eligible on-campus course and you pass the credit check, the loan will be available to you. Bear in mind that you will have to repay it with interest.