Parent Plus Loan - Parents of dependent undergraduate students may apply for up to $20,000 annually to help cover educational expenses. The aggregate limit for parent PLUS loans is $65,000.
Graduate PLUS Loan - Due to new legislation called the One Big Beautiful Bill Act, the graduate plus loan is no longer available to new borrowers, students in new programs of study, and students who have lost eligibility for a limited exception period.
Students who are eligible for the limited exception period may borrow up to the difference in the cost of attendance minus other financial assistance.
- Enrollment: Students must be enrolled at least half-time each semester to receive a PLUS Loan. Half-time for an undergraduate student is six credit hours per semester. Half-time for a graduate student is 5 hours per semester.
- Interest Rates: Rates are set each year. Interest rates are fixed for the life of the loan and interest begins accruing once funds are disbursed to a student’s account.
- Repayment:
- Parent PLUS Loan – repayment begins as soon as the loan is fully disbursed to the student’s account. Parents can request a deferment from their lender.
- Graduate PLUS Loan – repayment is automatically deferred while students are enrolled at least half-time (5+ hours as a graduate student) and for six months after graduating or dropping below half-time enrollment.
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How to Apply
Parents and graduate students can apply for a PLUS Loan by visiting www.studentaid.gov. Under “Apply for Aid,” select the respective PLUS Loan application. Borrowers will log in using their FSA ID and password. To be eligible, students must already have a Free Application for Federal Student Aid (FAFSA) on file for the respective academic year.
PLUS Loan Eligibility
Parent PLUS Loan amounts are up to $20,000 per year with an aggregate limit of $65,000. The actual annual amount is based on the student's cost of attendance minus all other scholarships, loans, etc. but cannot exceed $20,000 per year. A student may not be offered financial aid in excess of the cost of attendance. In the event that we are notified of additional scholarships, grants, fellowships, loans, etc. after the PLUS has been offered and/or disbursed, we will reduce the PLUS Loan accordingly pursuant to federal regulations.
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Loan Amount
Parent PLUS Loan amounts are up to $20,000 per year with an aggregate limit of $65,000. Parents should take into consideration that requesting the full $20,000 each year for 3 years will result in only receiving a remaining amount of $5,000 in the 4th year of the student’s enrollment.
A student may not be offered financial aid in excess of the cost of attendance. In the event that we are notified of additional scholarships, grants, fellowships, loans, etc. after the PLUS has been offered and/or disbursed, we will reduce the PLUS Loan accordingly pursuant to federal regulations.
If the student plans to attend the fall and spring semesters (August – April) or fall, spring, and summer semesters (August – August), it is recommended that borrowers request one loan to cover the entire academic year. Doing so avoids the need to submit a new application within the same academic year.
All Direct PLUS Loans are subject to a loan origination fee Opens an external link.. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement.
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Disbursement
Direct PLUS Loans are disbursed to a student’s account balance on the first day of classes each semester and are applied to charges before other financial assistance.
During the plus application process, the parent borrower will be asked, “If there is a credit balance (refund) after your Direct PLUS Loan has been applied to the student’s school account, to whom do you want the school to pay the credit balance?”
By selecting “The Student,” UAB Student Account Services will direct deposit the excess Parent PLUS funds to the student bank account on file in BlazerNET. By selecting “Me, the Parent,” UAB Student Accounting Services will mail a check to the parent borrower’s address if the refund is a result of the PLUS Loan.
Plus loan funds are only refunded to the parent when the PLUS loan amount is more than the student’s total charges.
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Credit Decision
A credit check is conducted on the borrower of the loan by the U.S. Department of Education. It is not based on a credit score but whether the borrower has an adverse credit history. This includes past-due accounts, charged-off accounts, liens, bankruptcies, repossessions, etc. Credit decisions are valid for a 180-day period. A PLUS Loan approval does not ensure future PLUS loan approvals, as credit is reviewed at the time of each subsequent application. If a borrower’s credit is not approved, they may:
- Appeal the decision through the application process at www.studentaid.gov.
- Have a credit-worthy endorser apply through www.studentaid.gov. An endorser is someone who agrees to repay the PLUS Loan in the event the borrower is unable to pay.
For Parent PLUS Loans - If the parent does not intend to pursue Parent PLUS approval through one of the first two options above, the student can request additional Direct Unsubsidized loan funds, “denial funds.” A freshman or sophomore may receive up to an additional $4,000 per academic year and junior or senior may receive up to an additional $5,000 per academic year. Students can submit this request by completing a Change Request Form on the “My Financial Aid” section of BlazerNET.
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Loan Cancellations
Prior to disbursement of the loan to the student’s account, the borrower can request a reduction in the loan amount by contacting the Office of Student Financial Aid at
This email address is being protected from spambots. You need JavaScript enabled to view it. . A new PLUS Loan application is typically not required for updates to an existing loan as long as the credit check has not expired.A loan cancellation request can be made within 30 days after the loan has been disbursed. A Loan Cancellation Form Opens an external link. is required and any disbursed plus loan funds must be returned to the school at the address below.
UAB Office of Student Account Services
University of Alabama at Birmingham
1720 2nd Avenue South
801 Financial Services Building
Birmingham, Alabama 35294