Parent PLUS Loans
Parent PLUS Loans
Parent PLUS Loans
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 generally have a more lenient lending requirement compared to private student loans. Approval is based on the absence of recent derogatory credit.
Read details on studentaid.gov.
IMPORTANT NOTICE: The One Big Beautiful Bill made significant changes to repayment options available for the Parent PLUS loan program. See the section below for important considerations.
About Parent PLUS Loans
How does the One Big Beautiful Bill affect parent PLUS loans?
The One Big Beautiful Bill Act (OBBBA) significantly restricts Parent PLUS loans by capping annual and lifetime borrowing amounts and eliminating most income-driven repayment and forgiveness options for new loans.
New Borrowing Limits
- Annual cap: Maximum of $20,000 per year per dependent student.
- Lifetime cap: Maximum of $65,000 in total aggregate debt per dependent student.
If your student was enrolled at Rowan University prior to June 30, 2026 and either you or they borrowed a federal loan (Direct Subsidized or Unsubsidized, or a parent PLUS) then you are exempt from these loan limits. Conditions apply to remain exempt.
New Repayment Plan
For Parent PLUS Loans taken out on or after July 1, 2026, the only repayment plan option available will be a new tiered standard repayment plan. The tiered standard repayment plan offers a fixed monthly payment over 10 to 25 years, based on the outstanding balance of the loan(s).
Elimination of Loan Forgiveness Opportunity
The new and only repayment plan available to parent PLUS loans, the tiered standard plan, is not an eligible plan for the Public Service Loan Forgiveness program. Because all loans must be repaid under the same repayment plan, borrowing a parent PLUS loan after July 1, will result in ALL of your parent PLUS loans previously borrowed being restricted to the tiered standard plan. The entire balance of you parent PLUS loans will become ineligible for forgiveness under the PSLF program - even if you are currently participating in the PSLF and on your way to forgiveness.
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/legal parent (or in some cases, the stepparent) of a dependent undergraduate student.
- You must be a citizen or eligible non-citizen 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.
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?
Effective with loans disbursed for the 2026/27 academic year, the only repayment plan available for parent PLUS loans is the Standard Tiered Plan.
Repayment begins within 60 days after the loan is fully disbursed. 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. 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.
IMPORTANT NOTICE: The One Big Beautiful Bill made significant changes to repayment options available for the Parent PLUS loan program. Borrowing a new Parent PLUS loan on or after July 1, 2026, will make your older Parent PLUS loans ineligible for income-driven repayment and Public Service Loan Forgiveness (PSLF). All new and existing Parent PLUS loans become restricted to the tiered Standard repayment plan, which does not qualify for PSLF.
What if I am denied a Parent PLUS loan?
You have options if your Parent PLUS loan application is denied.
Repayment of PLUS loans
Federal parent PLUS loans must be repaid, even if your student does not graduate. These loans are reported to credit reporting bureaus and on-time payments is one of the best ways to build/protect your credit score. Falling delinquent will negatively impact your ability to access credit in the future. Failing to make a payment for 270 days will result in the loan being determined as in default. Defaulted loans are at risk of wage garnishment, tax offset, and other severe consequences.
If you are experiencing financial difficulties repaying your parent PLUS loans, or your own student loans, be sure to contact your loan servicer immediately. You can find your loan servicer information by logging into your studentaid.gov dashboard.
Federal education loans, including parent PLUS loans have discharge provisions in the unfortunate event of pernament disability or death of either the borrower or the student.
