A Parent PLUS Loan is a federal loan that your parent can take out to help cover the cost of your college education. It’s part of the federal Direct Loan Program and is intended specifically for parents of dependent undergraduate students.
Here’s what you need to know:
- Your parent borrows the loan, not you. They’re legally responsible for repaying it — including interest and fees.
- The loan can be used to pay for any part of your cost of attendance that isn’t already covered by financial aid, including tuition, housing, meal plans, books, and other education-related expenses.
- To qualify, your parent must pass a credit check.
- Interest starts accruing as soon as the loan is disbursed.
- Repayment typically begins right away, but your parent can request a deferment while you’re in school and for six months after you graduate or drop below half-time enrollment.
Important considerations:
- The interest rate is fixed but usually higher than student Direct Loans.
- There are loan fees (a percentage taken out of the loan before it's disbursed).
- It’s often best used only after exploring grants, scholarships, and federal student loans in your name.
- To be eligible for a Parent PLUS loan, you must maintain Satisfactory Academic Progress as defined by the college.
- All one-semester loans will be disbursed in two equal payments throughout the semester.
Special Announcement: Interest Rates for New Direct Loans
Interest and fees for Direct PLUS loans for Parents
| Fixed interest rate (for 7/1/24 - 6/30/25) |
Loan fee (from 10/1/23 - 9/30/25) |
|---|---|
| 9.083% | 4.228% of the total loan |
How to Apply
- Fill out the Free Application for Federal Student Aid (FAFSA)
- Register for at least six credit hours in a program that’s eligible for financial aid
- The parent borrower must submit the Direct PLUS Loan Application
- The parent borrower must sign a Master Promissory Note (MPN)
More information about Direct PLUS Loans is available at Direct PLUS Loans for Parents, a website provided by the federal government.