What is a Parent PLUS Loan?

Playlist: Parent PLUS Loan - Overview

What is a Parent PLUS Loan?

A Parent PLUS Loan is an educational loan provided by the Federal Government to parents of dependent students.

The Parent PLUS Loan is designed to help students who have financial need to pay for educational expenses while attending college.

To be eligible for a Parent PLUS Loan, parents must pass a credit check and must be either: a U.S. citizen or national, a U.S.

permanent resident, or eligible non-citizen.

In addition, students must be enrolled at least half-time in an eligible program of study.

The interest rate is set for new loans each July 1st and is fixed for the life of the loan.

The U.S. Department of Education charges a loan fee for borrowing the Parent PLUS Loan.

This fee is a percentage based on the amount of your loan.

The maximum amount parents may borrow in a Parent PLUS Loan is the difference between the Cost of Attendance and the amount their student receives in financial aid.

So, for example, if the Cost of Attendance is $8,000, and the student receives $4,000 in financial aid, the parent may borrow up to $4,000 in a Parent PLUS Loan.

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