This loan is offered by the U.S. Department of Education and is based on credit history. Parents are responsible for paying back the loan. Here are a few helpful notes:
 

• The loan is in the parent's name, not the student’s and you must qualify.
   

• You may be eligible to borrow up to the full cost of attendance (tuition, fees, housing, meals, books, etc.) minus any other financial aid your student receives. For example, if the cost of attendance is $40,000 and the student receives $25.,000 in other financial aid, the max amount you may be eligible to borrow is $15,000 for that school year.
   

• The amount that you can borrow is only for one year. While each year you still have to qualify, the amount you borrow can increase. (For example, if you borrow $15,.000 each year, you will be responsbile to repay back $60,000 if the student is enrolled for 4 years and you borrowed $15,000 each year).
   

• Payments can usually be delayed while your student is still in school at least half-time. Parent PLUS Loan deferment allows parents to pause their loan payments while their child is in school at least half-time and for six months after they leave school. Interest still adds up during this time, and if it’s not paid, it can be added to the loan, making the total amount you owe higher. Deferment doesn’t happen automatically—you have to ask for it when you apply or by contacting your loan servicer.
   

Current Interest Rate (2024–25 School Year)

• Interest Rate: About 9.08% (fixed)

• Loan Fee: About 4.23% of the loan amount is deducted upfront.
   

Note: Interest starts building (accruing) as soon as the loan is given, even if you delay payments.
 

Learn more about current rates here: Federal Student Aid Interest Rates
 

How to Apply for a Parent PLUS Loan

 

1. Submit the FAFSA® Form
   Your student must complete the FAFSA® first at studentaid.gov.
    

2. Apply for the Parent PLUS Loan
   Go to studentaid.gov/plus-app and fill out the Parent PLUS Loan application. A credit check is part of the application. 
    

3. Sign a Master Promissory Note (MPN). This is a legal agreement that you will repay the loan.

   • If your credit is not approved, you can appeal the decision, get an endorser (someone with good credit who agrees to repay if you don’t), or your student may become eligible for extra unsubsidized loans.
      

Repayment Plans Available

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• Standard Repayment Plan

  • Same monthly payment each time

  • Paid off in 10 years

  • Usually the quickest and least expensive way to repay
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• Graduated Repayment Plan

  • Payments start low and go up every two years

  • Also takes about 10 years to finish paying

  • Good if you expect your income to grow
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• Extended Repayment Plan

  • Gives you up to 25 years to pay it off

  • Monthly payments are lower

  • But you’ll pay more in interest over time
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• Income-Contingent Repayment (ICR) (Only if you consolidate)

  • Monthly payment depends on your income and family size

  • You must first combine your Parent PLUS Loan into a Direct Consolidation Loan to use this plan

  • Any remaining loan balance may be forgiven after 25 years
     

Loan Forgiveness Options: Public Service Loan Forgiveness (PSLF)
 

• This is only an option if the parent works full-time in a public service job, like for the government or a non-profit.
   

• The Parent PLUS Loan must be combined into a Direct Consolidation Loan, and the parent must sign up for the ICR repayment plan.
   

• To qualify for loan forgiveness, the parent must make 120 on-time monthly payments while working in the public service job.