Parent PLUS Loans
Parent PLUS Loans
Parent PLUS Loans
A Parent PLUS loan is a great option to consider if you are the parent of a matriculated, dependent, undergraduate student and need additional funding to pay for college.
About Parent PLUS Loans
What is a Parent PLUS Loan?
A Parent PLUS loan is a credit-based loan though the Department of Education for parents of dependent undergraduate students. The borrower for this loan is the parent applicant. The student is not a co-borrower and is not responsible for repayment of these funds.
Parent PLUS loans may have lower interest rates, more lenient lending requirements and more flexible repayment options compared to private student loans.
What are the eligibility requirements for a Parent PLUS loan?
There are several requirements that must be met to receive a Parent PLUS loan:
- You must be the biological or adoptive parent (or in some cases, the stepparent) of a dependent undergraduate student.
- You must be a citizen or eligible non-citizens of the United States.
- Your student must be eligible to receive federal aid (registered half-time, making Satisfactory Academic Progress, etc.)
- You must not have an adverse credit history (see more below).
Tip! You do not need to be the parent listed on the FAFSA in order to apply for a Parent PLUS loan. In fact, both the custodial parent and the non-custodial parent are eligible to borrow from the PLUS loan program, provided the combined amounts borrowed do not exceed the cost of attendance for that academic year. You must have your own FSA ID created to apply for a Parent PLUS loan.
Note: Grandparents (unless they have legally adopted the dependent student) and legal guardians are not eligible to receive parent PLUS loans, even if they have had primary responsibility for raising the student.
What are the interest rates and fees?
The interest rates for Parent PLUS loans are fixed and updated annually by the Department of Education. You can view up-to-date interest rates on the link below.
There is also an origination fee which is a percentage of the total loan amount which is deducted before the loan is credited to your student's billing statement. Please consider the origination fee when determining the amount of your loan request.
How do I repay my Parent PLUS loan?
Repayment begins within 60 days after disbursement. You may choose to have repayment deferred (postponed) while the student, for whom you borrowed, is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time.
Interest that accrues during these periods will be capitalized if not paid. The repayment term is up to 10 years. Unless requested, there is no six month grace period. Payments can be deferred if you are in school yourself. Please note, since the interest rate is not subsidized, it will continue to accrue and will be capitalized when the loan enters repayment.
What if I am denied a Parent PLUS loan?
You have options if your Parent PLUS loan application is denied.
