To get a Parent PLUS Loan, you must be the biological or adoptive parent of a dependent undergraduate student who is enrolled at least half-time at an eligible school. You apply through the U.S. Department of Education’s website using your FSA ID, and the school must certify your eligibility. The process is straightforward, but there are specific requirements and steps you need to follow.
What Are the Eligibility Requirements for a Parent PLUS Loan?
Before you apply, make sure you meet all the basic requirements. You must be a U.S. citizen or eligible non-citizen, and you cannot be in default on any federal student loan. You also must not have an adverse credit history, which means no recent bankruptcies, foreclosures, or unpaid debts that are more than 90 days past due.
Your child must be enrolled at least half-time in a degree or certificate program at a participating school. The school must be eligible for federal student aid programs. You also need to be the parent of a dependent student—if your child is independent, they would not qualify for a PLUS loan.
How to Apply for a Parent PLUS Loan: Step-by-Step
Applying for a Parent PLUS Loan is done online. Follow these steps to complete your application.
- Get an FSA ID: Create a Federal Student Aid (FSA) ID at the official FSA website. This is your electronic signature.
- Complete the PLUS Loan Application: Log in with your FSA ID and fill out the Parent PLUS Loan application. You will need your child’s school information and the amount you wish to borrow.
- Submit the Application: After you submit, the Department of Education will check your credit history. If approved, the school will receive the funds.
- Sign the Master Promissory Note (MPN): You must sign an MPN, which is a legal agreement to repay the loan. You can do this online after approval.
- Complete Entrance Counseling: Although not required for PLUS loans, some schools may ask for it. Check with your child’s financial aid office.
How Much Can You Borrow with a Parent PLUS Loan?
The maximum amount you can borrow is the cost of attendance (COA) minus any other financial aid your child receives. The COA includes tuition, fees, room and board, books, supplies, and other education-related expenses. The school determines the COA, and you cannot borrow more than that amount.
What Is the Interest Rate and Fees for Parent PLUS Loans?
Parent PLUS Loans have a fixed interest rate that is set each year by Congress. For loans disbursed between July 1, 2026, and June 30, 2027, the interest rate is 7.54%. There is also a loan fee, which is a percentage of the loan amount. For PLUS loans, the fee is 4.228% for loans disbursed on or after October 1, 2025. These rates and fees are subject to change each year.
| Loan Type | Interest Rate (2026-2027) | Loan Fee |
|---|---|---|
| Parent PLUS Loan | 7.54% | 4.228% |
These rates are fixed for the life of the loan, so your monthly payment will not change due to interest rate fluctuations. However, the fee is deducted from the loan amount before disbursement, so you will receive slightly less than the amount you borrow.
What If You Are Denied a Parent PLUS Loan?
If your application is denied due to adverse credit history, you have options. You can appeal the decision, or you can get an endorser (a co-signer) who has acceptable credit. Another option is to document extenuating circumstances for the credit issue, but this is not common.
If you cannot get the loan, your child may be eligible for additional unsubsidized Direct Loans. The amount is limited, but it can help cover education costs. You can also explore private student loans, but these often have higher interest rates and less flexible repayment options.
How to Repay a Parent PLUS Loan
Repayment begins after the loan is fully disbursed, and the first payment is typically due within 60 days. However, you can request a deferment while your child is enrolled at least half-time, plus an additional six months after they leave school. You can also choose from several repayment plans, including standard, graduated, and income-contingent repayment.
Income-contingent repayment (ICR) is the only income-driven plan available for Parent PLUS Loans, but you must consolidate your PLUS loan into a Direct Consolidation Loan first to qualify. This can lower your monthly payment based on your income, but it may extend the repayment term and increase total interest paid.
Tips for Managing Parent PLUS Loans
- Borrow only what you need, not the maximum amount offered.
- Consider making interest payments while your child is in school to avoid capitalization.
- Set up automatic payments to get a 0.25% interest rate reduction.
- Keep track of your loan servicer and payment due dates.
Alternatives to Parent PLUS Loans
If you are hesitant about taking on debt, there are other ways to help your child pay for college. Your child can apply for scholarships, grants, and work-study programs. They can also take out federal Direct Subsidized or Unsubsidized Loans in their own name. Private loans are an option, but they should be a last resort due to higher costs.
You can also consider a home equity loan or a cash-out refinance if you own a home, but these put your home at risk if you cannot repay. Always compare all options and understand the terms before borrowing.
Summary
Getting a Parent PLUS Loan is a simple online process, but it requires meeting eligibility criteria and understanding the costs. Start by creating an FSA ID, complete the application, and sign the MPN. Be aware of the interest rate and fees, and have a plan for repayment. If denied, explore alternatives like an endorser or additional student loans. Always borrow responsibly and consider all financial aid options first.
Frequently Asked Questions
What credit score is needed for a Parent PLUS loan?
There is no minimum credit score, but you must not have an adverse credit history, which includes bankruptcy, foreclosure, or being 90+ days delinquent on any debt.
Can I get a Parent PLUS loan if my child is a graduate student?
No, Parent PLUS loans are only for parents of dependent undergraduate students. Graduate students can apply for Grad PLUS loans on their own.
How long does it take to get approved for a Parent PLUS loan?
Approval is usually immediate if you apply online, as the credit check is automated. The school then processes the funds, which can take a few days to a few weeks.
Can I consolidate a Parent PLUS loan with my own student loans?
No, you cannot consolidate a Parent PLUS loan together with your own federal student loans. You can consolidate multiple Parent PLUS loans into one Direct Consolidation Loan.
Are Parent PLUS loans forgiven if the parent dies?
Yes, Parent PLUS loans are discharged if the parent borrower dies. They are also discharged if the student for whom the loan was taken dies.
