How to Apply for a Parent PLUS Loan

A Parent PLUS Loan is a loan from the federal government to the parents of dependent undergraduate students. Parent PLUS loans are credit based using the provided parent’s financial information to determine if the loan will be approved. Parents who are not approved for the Parent PLUS Loan may appeal the credit decision or apply with a co-signer (also called an endorser).

To be eligible to apply for a Parent PLUS Loan an individual must be:

• The student’s biological or adoptive parent (regardless of if they have custody of the student or not)
• A Stepparent, if the stepparent’s financial information is required to be reported on the FAFSA

The following individuals are not eligible to apply for a Parent PLUS Loan:

• Legal Guardians
• Non-Citizens
• Individuals who are in default on a federal student loan or who owe a federal student grant overpayment
• Individuals whose property is held in a lien by the federal government
• Individuals who are incarcerated
• Individuals with adverse credit history as determined by the Department of Education

Steps to apply for a Parent PLUS Loan

1. Before starting, make sure that you do not have a freeze on your credit report
2. To apply for a Parent PLUS loan the Parent borrower must go to studentaid.gov and "Log In" using their FSA ID and password.

   Note: If the student logs in using their information, the student will be the borrower and will not be eligible for the loan. This will result in an invalid application that will not be processed

3. Move your mouse to the top of the page and hover over the "Grants and Loans"drop-down.
4. Click on the link that says: "PLUS Loans: Graduate Plus and Parent PLUS"when it appears.
5. Click the "Learn More" button under Select a borrower type.
6. Click the "Start" button under Apply for a Plus Loan. Click the "Continue" button to proceed with the application.
7. Select the award year that the student will be attending. For example, if your student is starting in the Fall of 2025, Spring of 2026, or Summer of 2026, the award year will be 2025-2026.
8. Enter the student’s Name, Personal Information, and Contact Information. You may be able to select a student and have the system fill in the data fields for you. Verify the information entered is correct before moving on.
9. Search for the school by selecting "Illinois" as the state and "Northern Illinois University" as the school name.
10. If this is your second plus loan application for the aid year, you need to select if this is a new loan or if you are trying to change the previous loan. (Please note, it may be significantly easier to email the financial aid office if you want your loan adjusted.)
11. Select the "Loan Amount Requested" as one of the following:
    • "I want to borrow the maximum Direct PLUS for which I am eligible, as determined by the school."
      Note: Selecting this option may result in a reduction of federal work study.
      
    • "I would like to specify a loan amount" then type in the loan amount you want. (You can contact the financial aid office for a recommended amount based on your student’s other aid and charges.)
      Note: An amount must be specified, or the application process will be delayed while the school requests this information from the parent.
      
    • "I do not know the amount I want to borrow. I will contact the school." Note: If you choose this option, it is important you contact the school or the application process will be delayed while the school requests the information from.

    Click the "Continue" button to proceed with the application.

12. Select the Loan Periodfrom the drop-down list:
    • For most borrowers we recommend choosing a full year loan if the student will be enrolled in both the Fall and Spring semesters.
    • If you are graduating in Fall 2025 or you only want a Fall semester loan — select Fall only.
    • If you are starting in the Spring 2026 or you only want a Spring semester loan — select Spring only.

    Click"Continue" at the bottom to move on to the next step.

13. Select if you wish to defer payment of the PLUS loan while the student is in school.
    Note: Interest will continue to accrue.
14. Select if you wish to defer payment of the PLUS loan for 6 months after the student is no longer enrolled.
15. Check the box if you want to authorize the loan to pay for additional charges.
16. Select who should receive any payments if the student has a credit balance; parent or student. Direct deposit options are discussed below.
17. Enter your (The Parent) information into the Borrower section. Indicate your (The Parent) relationship to the student. Some of the data fields may be populated with information that is already on file for you. Verify the information is correct before moving on.
18. Enter your (The Parent) employer information into the fields. If you are not employed check the box.
19. Click "Continue" at the bottom to move on to the next step.
20. Review the student and borrower information and update if necessary, then click "Continue".
21. Review the "IMPORTANT NOTICES" by selecting each drop down then click the box to confirm.
22. Certify the accuracy of the information on the application by checking the first box.
23. Authorize the Department of Education to check the credit of the parent borrower by checking the second box.
24. Upon selecting "Continue" the results of the PLUS application will be displayed.

Loan funds are disbursed to the Bursar account after the add/drop period is closed. If the Federal Direct Parent PLUS disbursement generates a refund after University charges are paid, the refunded amount will go to the parent unless the parent borrower indicates on the PLUS application that they authorize any refund to be sent to the student.

If the disbursement generates a parent refund, the parent borrower has the option of signing up for direct deposit. Direct deposit offers a timely, reliable, and safe way to deliver your refund to your checking or savings account. For more information on refunds and to sign up for direct deposit, please see the Bursar Office website.

What Happens If the Parent PLUS Loan Is Denied?

Apply with an endorser—this option allows the borrower to reapply with a co-signer. If after reapplying with an endorser, the borrower is still denied, or the parent decides not to pursue an endorser, the student may receive additional Direct Unsubsidized loans up to the independent amount for the student’s grade level.

Appeal the credit decision—this option allows the borrower to provide documentation to the Department of Education to prove extenuating circumstances that may override the initial credit decision. If after appealing the credit decision, the borrower is still denied or the parent decides not to appeal the credit decision, the student may receive additional Direct Unsubsidized loans up to the independent amount for the student’s grade level.

Do not pursue the Parent PLUS Loan—this option allows the borrower to acknowledge the denial of a Parent PLUS loan. Using this option allows the student to receive additional Direct Unsubsidized loans up to the independent amount for the student’s grade level.

Undecided—NIU will offer the additional Direct Unsubsidized loans if this option is selected.

NIU will be automatically notified if an endorser or credit appeal is approved at a later date and will make adjustments to the loans as necessary.