Parents Financial Aid

The Federal Parent PLUS Loan is a loan specifically for parents of undergraduate dependent students. It is a federal loan that must be repaid including all interest. 

Beginning July 1, 2026, new Parent PLUS loan rules begin. Parents can borrow up to $20,000 per dependent student per year with a $65,000 aggregate limit per dependent student.

If your student borrowed federal loans prior to July 1, 2026, parents may be eligible to borrow beyond the $20,000 limit.

Interest rates are set by the Department of Education each year. There is also a loan fee for all Parent PLUS loans. Eligibility for this loan is based on credit history as set by federal guidelines. Before applying for a Parent PLUS Loan, please be sure your student has already submitted their FAFSA.

You and your child must also meet the general eligibility requirements for federal student aid. 

Apply for a Parent Plus Loan 

Once approved, your funds will be disbursed after you sign your Master Promissory Note (MPN). Half of the loan will be added to the student’s account in the fall and the other half will disburse during the spring semester.

Repayment of a Parent PLUS loan typically begins within 60 days after the full disbursement of the loan. However, a parent can request deferment of a PLUS loan while the student is enrolled. Interest will continue to accrue during the deferment period.

Parent PLUS Denial: If denied, the student can receive additional Unsubsidized Loans in the amount of $4,000 for freshmen and sophomores and $5,000 for junior and seniors for the year. Decisions will be sent to the Financial Aid Office within a week. 

IMPORTANT: In order for the student to be eligible for additional unsubsidized loans with a Parent PLUS Denial, parents must select "Will not pursue PLUS Loan" after the denial decision is made. Leaving it blank or selecting the endorser option does not allow for the additional unsubsidized loan. The Financial Aid Office must also receive the "Undergraduate Loan Form" in order for the additional loan money to be placed on the student's account. The form can be found in the student's myLipscomb account.  If an endorser option is selected, then this process must be completed and submitted to the school by The Department of Education before the PLUS loan can be added to the student's award

Private loans should be considered as a last resort when financing your student’s college education. We strongly encourage you to borrow from the Federal Parent PLUS Loan program before considering private loans. Generally, you will receive a better interest rate on federal loans than with private loans. However, if you need additional funding beyond your federal loan limit or don’t meet the federal eligibility guidelines, private loans may help you cover unmet expenses.

Private loans are made by banks and other financial institutions and are subject to their terms. Eligibility for these loans requires a credit check.

Lipscomb University does not endorse or recommend any specific private loan product. In determining which private loan is best for your needs, we recommend you research and compare loan interest rates, fees, repayment options, and eligibility requirements.

Lipscomb students who are 18 years or older are protected by the Family Educational Rights and Privacy Act (FERPA). This federal law protects the privacy and rights of a student’s educational records.

Students should complete the FERPA form found through their Lipscomb Student Portal or under My Profile to authorize who we can share information with. We are unable to disclose any financial aid information without the student’s written permission.