Federal Direct Parent PLUS Loan

What is a Parent PLUS Loan?

A Parent PLUS Loan allows a parent to help pay for their child's education through a fixed-rate federal loan. PLUS Loans can help cover educational expenses not covered by other financial aid resources. The loan is in the parent's name; not the student's and in order to be approved, the borrower must not have adverse credit. The US Department of Education is the lender for the loan and the parent is responsible for repaying any amounts borrowed. In order to have a PLUS Loan awarded to the student's account, the student must have a FAFSA application on file and be enrolled in at least 6 credits per semester.

As a family, you should weigh the options between a Federal Direct Parent PLUS Loan (parents of dependent undergraduate students only), Private/Alternative Parent Loans (any credit-worthy person who is not the student wishing to gift the cost of education on their behalf) and a Private/Alternative Student Loan (student & credit-worthy co-signer). Click on the link below to view a side-by0-side comparison of the different loan types.