Parent PLUS Loans can be used to pay for educational expenses not satisfied by other federal aid. These loans can be issued to parents of undergraduate dependent students.
Eligible Borrowers
- Individuals eligible for Parent PLUS Loans include parents (biological and adoptive), in some instances, stepparents, and legal guardians of eligible dependent undergraduate students. The undergraduate students must be U.S. citizens or eligible non-citizens that are enrolled at least half-time in a qualifying program.
- To qualify for a Parent PLUS Loan, the parent borrower must not have an adverse credit history. Borrowers may require an endorser without an adverse credit history to be approved.
- Borrowers do not need to demonstrate financial need to qualify for Parent PLUS Loans.
Loan Limits
Borrowers can qualify for up to the school’s total cost of attendance remaining after all other financial aid is subtracted.
Repayment Terms
- Borrowers with loans disbursed before 7/1/2008 must enter repayment once the loan is fully disbursed. Borrowers with loans disbursed after 7/1/2008 can choose to enter repayment:
- Within 60 days after the loan is fully disbursed.
- Upon request, 6 months following the student’s graduation, withdrawal, or after the student drops to less than half-time enrollment.
- Upon entering repayment, loans are set to a Standard 10 year repayment term. Borrowers can switch to an alternative repayment plan if necessary.
- In some circumstances, the borrower can qualify for a deferment where loan payments are postponed for a period of time. During deferment, interest will continue to accrue.
- A borrower may be able to request a forbearance to temporarily stop payments. During forbearance, interest will continue to accrue, and any unpaid interest may be capitalized.
- There are no prepayment penalties for borrowers who choose to pay off their loans ahead of time.
Current Interest Rate
| Direct PLUS Loans first disbursed on or after 7/1/2013 and before 7/1/2014 | 6.41% |
| Direct PLUS Loans first disbursed on or after 7/1/2014 and before 7/1/2015 | 7.21% |