Parent PLUS Loan — loan for parents
A federal Direct PLUS Loan available to parents of dependent undergraduate students to help pay for college costs not covered by other financial aid.
Official source: studentaid.gov
A Parent PLUS Loan is a federal loan that helps parents pay for their dependent undergraduate child's college expenses that other financial aid does not cover. The interest rate is fixed at 7.54% for loans first disbursed in the 2025-26 school year (through June 30, 2026), and rises to 9.07% for loans first disbursed in the 2026-27 school year (July 1, 2026 onward). PLUS loan rates are usually higher than undergraduate Direct Loan rates. There is no income limit to qualify, but parents must not have a bad credit history.Repayment starts right after the loan is given, but parents can choose to defer payments while their child is still enrolled in school. Parent PLUS Loans cannot be transferred to the student, meaning the parent is responsible for repayment.If a parent consolidates their loans, they may qualify for an Income-Contingent Repayment plan, which adjusts monthly payments based on income. Parents should consider their financial situation carefully before taking out this loan, as it can add to their debt. See also: <a href="/glossary/fafsa">FAFSA</a>.
In real life
- A parent might take out a Parent PLUS loan to fill the gap between their child's scholarship and the total cost of tuition.
- Someone could use a Parent PLUS loan to pay for their child's room and board, even if the student received other financial aid for classes.
- A family might consider a Parent PLUS loan if they need to cover college expenses that grants and student loans don't fully pay for.
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Frequently asked questions about Parent PLUS Loan
What is 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 9.07% for 2026–27 loans (disbursed on or after July 1, 2026). Generally higher than undergraduate Direct Loans.
Who qualifies for Parent PLUS Loan?+
No income limit, but parents must not have an adverse credit history.
How do I apply for Parent PLUS Loan?+
BenefitKarma's free Benefit Eligibility Screener can point you to the right application path.
Where can I get help?+
Use BenefitKarma's free Benefit Eligibility Screener to see what programs you may qualify for. The Find Benefits tool tool also lets you browse programs by state.
Source: studentaid.gov