Parent PLUS Loan
What Is a Parent PLUS Loan?
A Parent PLUS Loan is a federal student loan available to parents of dependent undergraduate students to help pay for education expenses. These loans are part of the federal Direct Loan program and are issued by the U.S. Department of Education.
Parent PLUS Loans can help cover costs not already covered by other financial aid.
Why It Matters
Parent PLUS Loans provide additional funding when scholarships, grants, and student loans are not enough to cover the total cost of college. They allow parents to help finance their child’s education while using federal loan programs rather than private loans.
However, parents—not students—are responsible for repaying the loan.
How Parent PLUS Loans Work
Parents apply for a PLUS Loan through the federal student aid system.
Key characteristics include:
- credit check requirement
- borrowing up to the full Cost of Attendance minus other aid
- fixed federal interest rates
Repayment usually begins shortly after the loan is disbursed, though deferment options may be available while the student is enrolled.
Example
After reviewing their child’s financial aid package, the Martinez family still needs funds to cover tuition and housing. One parent applies for a Parent PLUS Loan to help cover the remaining college expenses.
Parent PLUS Loan vs Federal Student Loan
- Parent PLUS Loans are borrowed and repaid by parents.
- Most federal student loans are borrowed and repaid by the student.
FAQs About Parent PLUS Loans
Who repays the Parent PLUS Loan?
The parent borrower is responsible for repayment.
Is a credit check required?
Yes, parents must pass a credit check to qualify.
How much can parents borrow?
Up to the school’s Cost of Attendance minus other financial aid.
Related Terms
