What is a Parent PLUS Loan: A Comprehensive Guide

In the pursuit of higher education, funding can often pose a significant challenge. As the cost of college continues to rise, many students and their families turn to various financial aid options to bridge the gap. One such option that parents can explore is the Parent PLUS Loan. In this article, we will delve into the details of what is a Parent PLUS Loan is, how it works, and its key features.

What is a Parent PLUS Loan?

What is a Parent PLUS Loan, short for offered by the U.S. Department of Education. This loan is specifically designed to assist parents or legal guardians in financing their child’s education. Looking to cover the costs of tuition, room and board, and other educational expenses.

How Does a Parent PLUS Loan Work?


To be eligible for a Parent PLUS Loan, the parent borrower must:

  • Have a good credit history. Adverse credit history may affect eligibility.
  • Ensure the student is enrolled at least half-time in an eligible program at an accredited institution.

Loan Terms

The interest begins accruing as soon. Parents can choose to start repayment immediately or defer it until after the student graduates or drops below half-time enrollment.

Benefits of Parent PLUS Loans

No Borrowing Limit

One significant advantage of Parent PLUS Loans is that there is no set borrowing limit. Parents can borrow up to the full received.

Flexible Repayment Options

Parent borrowers can choose from various repayment plans, including standard, extended, and income-contingent options. This flexibility allows parents to select a plan that aligns with their financial situation.

Potential Loan Forgiveness

In some cases, Parent PLUS Loans may be eligible for loan forgiveness or discharge if the parent borrower experiences a qualifying event, such as permanent disability or death.

Drawbacks of Parent PLUS Loans

Credit Check Requirement

One of the significant drawbacks of Parent PLUS Loans is the credit check requirement. Parents with adverse credit history may need an endorser or appeal the credit decision to secure the loan.

Interest Accrual

As mentioned earlier, interest on Parent PLUS Loans begins accruing immediately after disbursement. This can lead to a substantial amount of interest being added to the loan balance over time.

Limited Income-Driven Options

Unlike some federal student loans, Parent PLUS Loans have limited income-driven repayment options, which can make it challenging for parents facing financial difficulties. Read more…


In summary,what is a Parent PLUS Loan is a federal loan program designed to assist parents in funding their child’s education. While it offers benefits such as no borrowing limit and flexible repayment options, it also comes with drawbacks like credit check requirements and interest accrual. Before opting for a Parent PLUS Loan, it’s essential for parents to carefully consider their financial situation and explore all available options.


1. Can grandparents apply for a PLUS Loan?

No, only biological or adoptive parents or legal guardians of dependent undergraduate students are eligible for Parent PLUS Loans.

2. What is the current interest rate for PLUS Loans?

Interest rates for PLUS Loans are determined annually by the federal government. It’s advisable to check the current rates on the Federal Student Aid website.

3. How can I apply for a PLUS Loan?

To apply for a PLUS Loan, you must complete the FAFSA and then submit a separate application for the loan on the Federal Student Aid website.

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