Parent PLUS Loan
A federal Direct PLUS Loan available to parents of dependent undergraduate students to help pay for college costs not covered by other financial aid.
Interest rate is fixed (7.54% for 2025–26 loans) and generally higher than undergraduate Direct Loans. No income limit, but parents must not have an adverse credit history. Repayment begins immediately after disbursement (deferment available while student is enrolled). Unlike student loans, Parent PLUS Loans cannot be transferred to the student.
→ ICR (Income-Contingent Repayment) is available for Parent PLUS Loans if consolidated.
Related terms
- FAFSA
The form students must complete each year to determine eligibility for federal financial aid, including Pell Grants, federal student loans, work-study, and many institutional scholarships.
- Federal Work-Study
A federally funded program providing part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay for educational expenses while enrolled.
- Pell Grant
A federal need-based educational grant available to undergraduate students who have not yet earned a bachelor's degree, providing funds that do not need to be repaid.
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Frequently asked questions about Parent PLUS Loan
What is a Parent PLUS Loan?+
A Parent PLUS Loan is a federal loan for parents of college students. It helps pay for school costs that other financial aid does not cover. Your child must be an undergraduate student and depend on you financially. This loan is designed to make college more affordable for families.
Who can get a Parent PLUS Loan?+
Parents of dependent undergraduate students can get these loans. You must also meet other basic requirements like not having a bad credit history. The student also needs to be enrolled at least part-time at an eligible school. It helps families pay for higher education expenses.
How do I apply for a Parent PLUS Loan?+
You apply for a Parent PLUS Loan through the Free Application for Federal Student Aid (FAFSA). Your child fills out their part, and then you can apply for the PLUS loan. You'll need to complete a separate application for the loan itself. The school will then tell you what you can borrow.
How much money can I get with a Parent PLUS Loan?+
You can borrow up to the full cost of your child's attendance, minus any other financial aid they receive. The school determines this cost. This means the loan can cover big parts of tuition, housing, and other school-related expenses. It helps fill the gap that scholarships don't cover.