What Is Parent Plus Loan?

What Is Parent Plus Loan? Many parents look into different financial choices to support their children’s educational objectives when financing higher education. The Parent PLUS Loan, a federal loan program created especially for parents of undergraduate students, is one such choice. This page seeks to give a quick introduction to Parent PLUS Loans, covering their characteristics, requirements for qualifying, and available repayment plans.

What Is Parent Plus Loan?

Parent PLUS Loans: What Are They?

The U.S. Department of Education offers Parent PLUS Loans, which are federal loans, to help parents or guardians pay for their children’s college education. Families that require additional financial assistance beyond what their child can borrow through federal student loans or other financial aid alternatives may find these loans appealing.

Essential Qualities and Eligibility:

1. Creditworthiness:

When applying for Parent PLUS Loans, a credit check is necessary. However, compared to private loans, they have less strict credit requirements, allowing a larger spectrum of borrowers to be eligible for them.

2. Loan Caps:

Parents are permitted to borrow a maximum of the total cost of attendance, as assessed by the school, less any additional financial aid that the student may have received. There are no yearly or overall borrowing restrictions for Parent PLUS Loans, in contrast to several other federal loan programs.

3. Interest Rates and Fees:

The U.S. Department of Education sets the fixed interest rates for Parent PLUS Loans each year. These interest rates are typically greater than those for loans for undergraduate students. The origination fee is subtracted from the loan payment in addition to interest.

4. Repayment Options:

Parent PLUS Loan repayment usually starts 60 days after the loan has been fully disbursed. The repayment options available to borrowers include graded repayment, income-contingent repayment, extended repayment, and ordinary repayment. In some situations, parent borrowers may also choose a deferment or forbearance.

5. Responsibility and Transferability:

It is crucial to remember that the parent borrower, not the student, is legally responsible for the Parent PLUS Loan. After graduation, parents cannot transfer this loan to their child, therefore they are responsible for repayment up until the loan is paid off.


Parents who want to pay for their child’s college education may find Parent PLUS Loans to be a beneficial financial resource. These loans help close the funding gap between available resources and the cost of attendance by offering extra financial options in addition to federal student loans. Parents need to evaluate their financial status and comprehend the loan’s conditions, repayment choices, and long-term effects before considering a Parent PLUS Loan. To make an informed choice about how to pay for higher education, it is also advised that you speak with a financial advisor or look into other financial aid options.

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