Federal direct loans

The first step is to fill out the FAFSA. Once the application has been processed and received, your financial aid offer will be made available, after which you can follow the steps below to complete your loan application:

• Log into your my.SMU portal to accept your loan(s). You can accept the loan for the full amount offered or you can chose to reduce the amount, but  you will not have the ability to increase the loan amount. 
• If you are a first-time SMU borrower: Complete the Direct Loan Entrance Counseling and and be sure to include SMU (school code 003613) as an institution you want to receive the results.
• If you are a first-time Direct Loan borrower: Sign the Master Promissory Note (MPN). All students are required to use their FSA ID issued by the Department of Education. 
  • If you do not have a FSA ID, you may request one from the official FSA ID site.

For detailed information on the differences between Subsidized and Unsubsidized Loans, please visit the Federal Student Aid website.

The Direct Parent PLUS Loan is a credit-based federal loan parents of dependent, undergraduate students can take out to assist with the cost of the student's education. The parent will need to apply for the loan, not the student, and the parent is responsible for repayment.

Any parent or legal guardian of a dependent undergraduate student who is enrolled at least half-time may apply. The parent applying for the loan must be credit approved to qualify for the loan.

For Direct Parent PLUS Loans first disbursed on or after July 1, 2026, and before July 1, 2027, the interest rate is 9.07%* and there is a loan origination fee of 4.228%** from the total loan amount. Interest begins accruing as soon as the loan is disbursed.

Repayment will begin 60 days after the loan has fully disbursed; however, the parent borrower may request a deferment. If a deferment is requested, the parent borrower will not need to make payments while their child is enrolled at least half-time and for an additional six months after their child graduates, leaves school, or drops below half-time enrollment. The parent borrower will have the option of requesting a deferment as part of the loan request process at StudentAid.gov, and they may also contact their loan servicer to make this request.

During periods of deferment, interest will accrue on the loan. The parent borrower may choose to pay the accrued interest or allow the interest to be capitalized (added to the loan principal balance) when they have to start making payments. The loan servicer will notify the parent borrower when their first payment is due, and under a standard repayment plan, the parent borrower will have up to 10 years (120 monthly payments) to repay the loan.

*Federal Direct Student Loan interest rates are subject to change every July 1.
**Federal Direct Loan origination fees are subject to change every October 1.

1. Visit the U.S. Department of Education's Direct Loan application page.
2. Complete the Direct PLUS Loan Request for "Parent of a Student."
   • This application authorizes the Department of Education to conduct a credit check on the requesting borrower. Please note: If the borrower currently has a credit freeze in place with any of the three major credit reporting bureaus (Equifax, Experian, or TransUnion), the freeze must be lifted prior to application submission.
3. Follow any additional steps based on the credit check results.

The results of the PLUS Application will be sent automatically to SMU. When completing the application, you will be asked to provide the term or academic year dates you would like the loan applied to, and you will also indicate the amount you want to borrow.

*Effective July 1, 2026, new loan borrowing limits will be imposed for new Parent PLUS Loan applicants starting with the 2026-2027 academic year. Parents who borrowed from the Parent PLUS Loan program, or their student utilized either a Federal Direct Subsidized loan or Federal Direct Unsubsidized loan prior to June 30, 2026, may be eligible for the "limited exception" allowing you to continue to borrow up to your student's total cost of attendance minus any other financial aid they are receiving. For more information on the new Parent PLUS loan limits and if you qualify for the "limited exception", please visit our One Big Beautiful Bill Act webpage.*

If credit approved, the parent borrower must also complete the PLUS Master Promissory Note (MPN) before funds can be disbursed.

In the event an application is denied, there are two options to consider:

1. The parent borrower can re-apply with a co-signer (called an endorser) they believe will meet the credit approval.
2. The student is eligible for an additional amount of Federal Direct Unsubsidized Loan funds.

If the parent borrower is approved with an endorser, they will need to complete PLUS Loan Credit Counseling in addition to the PLUS Master Promissory Note (MPN).

For more detailed information on the options and the requirements the parent borrower must meet to be eligible, please visit PLUS Loan Adverse Credit.

Loan funds are paid directly to the student's SMU Student Account. If there are excess funds remaining after paying the student's account charges, the credit balance will be refunded to the parent borrower.

The Direct Graduate PLUS Loan is a federal student loan specifically for graduate and professional students. Unlike other federal student loans, a credit approval is required.

Graduate and professional students who are enrolled at least half-time, have filed a FAFSA, and meet the credit approval may apply for the Federal Direct Graduate PLUS Loan. *Please note: effective July 1, 2026 the Grad PLUS Loan will only be available to students who meet the "limited exception" policy under the One Big Beautiful Bill Act.*

For Direct PLUS Loans first disbursed on or after July 1, 2026, and before July 1, 2027, the interest rate is 9.07%* and there is a loan origination fee of 4.228%** from the total loan amount. Interest begins accruing as soon as the loan is disbursed.

You will receive an automatic deferment while you are enrolled in school at least half time, and for an additional six months after you graduate, leave school, or drop below half-time enrollment. You do not have to start making payments until after this deferment period ends.

During periods of deferment, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due, and under a standard repayment plan, you will have up to 10 years (120 monthly payments) to repay the loan.

*Federal Direct Student Loan interest rates are subject to change every July 1.
**Federal Direct Loan origination fees are subject to change every October 1.

1. Visit the U.S. Department of Education's Direct Loan application page
2. Complete the Direct PLUS Loan Request for Graduate or Professional Students
   • This application authorizes the Department of Education to conduct a credit check
3. Follow any additional steps based on the credit check results

The results of the PLUS Application will be sent automatically to SMU. When completing the application, you will be asked to provide the term or academic year dates you would like the loan applied to, and you will also indicate the amount you want to borrow. On the financial aid offer in my.SMU, the total amount a student may borrow will be listed as "Credit-Based Loan Option". 

Effective July 1, 2026, The Grad PLUS Loan will only be available to students who meet the "limited exception" policy under the One Big Beautiful Bill Act. Students meeting and maintaining the new policy requirements may borrow up to their total cost of attendance minus any other financial aid they are receiving. Students not eligible for the "limited exception" may utilize other credit-based loan options.

If you are approved, you must also complete Loan Entrance Counseling and the PLUS Master Promissory Note (MPN) for Graduate/Professional Students before funds can be disbursed.

Students eligible under the "limited exception" who have their application denied due to adverse credit history, can re-apply with a co-signer (called an endorser) they believe will be credit approved and be reconsidered for a Graduate PLUS Loan. If approved with an endorser, the student will need to complete PLUS Loan Credit Counseling in addition to Loan Entrance Counseling and the PLUS Master Promissory Note (MPN).

For more detailed information on your options and the requirements you must meet to be eligible, please visit PLUS Loan Adverse Credit.

The loan is paid directly to your SMU Student Account. If there are excess funds remaining after paying the account charges, the credit balance will be refunded to the borrower.