Federal Direct Parent Loan for Undergraduate Students (PLUS)

The Federal Direct PLUS Loan can be borrowed by a student's parent(s) to assist in the funding of a Luther College education. The following are highlights of this program:

  • Easy and convenient in-school processing for quick disbursement
    • Two-step process for new borrowers: The completion of a PLUS Loan Application and the Master Promissory Note.  A parent will need their Federal Student Aid (FSA) ID to complete these steps.  Once on the site, a parent will select the "Parent Borrowers" option followed by the "Request a Direct PLUS Loan" option to begin the process
    • One-step process for repeat borrowers (completion of a PLUS loan application only)
    • Online Master Promissory Note allows for added borrowing without signing a new note.  Parent FSA ID will be used for signature
  • Loans range up to the total cost of college, including travel and personal expenses
  • Parent must not have an adverse credit history
  • Unsecured loan, not based on family income
  • Loans borrowed from July 1, 2022 to June 30, 2023 - fixed 7.54% interest rate
  • Loans borrowed from July 1, 2021 to June 30, 2022 - fixed 6.28% interest rate
  • Loans borrowed from July 1, 2020 to June 30, 2021 - fixed 5.30% interest rate
  • Loans borrowed from July 1, 2019 to June 30, 2020 - fixed 7.08% interest rate
  • Loans borrowed from July 1, 2018 to June 30, 2019 - fixed 7.595% interest rate
  • Loans borrowed from July 1, 2017 to June 30, 2018 - fixed 7.00% interest rate
  • Loans borrowed from July 1, 2016 to June 30, 2017 - fixed 6.31% interest rate
  • Origination fee of 4.228% starting October 1, 2020. This rate will be retained starting October 1, 2021.
  • Borrower can elect to defer this loan while the student is enrolled at least half-time through use of a Deferment Form available from their loan servicer
  • Loan Servicing is handled by a U.S. Department of Education contractor. Loans are submitted to a contractor for servicing once they have been disbursed to the student's account