What is a Parent PLUS Loan ?
One type of Direct PLUS loan is the Parent PLUS loan, made to the parent or legal guardian of dependent undergraduate student to help cover the cost of student's education.
How Does Parent PLUS Loans Works ?
The USDE makes Direct PLUS Loans to eligible parents through schools participating in Direct Loan Program. Parent PLUS loans have a fixed interest rate.
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Who is Eligible for Parent PLUS Loan ?
Be the parent of a dependent undergraduate student enrolled at least half-time at a qualified school, whether biological, adoptive, or stepparent (in some situations).
Parent PLUS Loan Interest Rate
For Parent PLUS Loans first disbursed on or after July 1, 2022, and before July 1, 2023, the interest rate is 7.54%. This is a fixed interest rate for the life of the loan.
Parent PLUS Loan Borrowing Limits
The maximum PLUS loan amount you can borrow is the cost of attendance at the school your child will attend minus any other financial assistance your child receives.
Fees for Parent PLUS Loan
Federal student loans charge one-time origination fee, which is withheld from your loan funds. Parent PLUS loan origination fee is 4.228% of the principal for loans.
Repayment Plans for Parent PLUS Loan
Parent borrowers are eligible for the repayment plans like, standard repayment plan, graduated repayment plan, extended repayment plan & Income-contingent repayment.
How to Apply for Parent PLUS Loan ?
To apply for a Parent PLUS loan, students and their parents must fill out the Free Application for Federal Student Aid (FAFSA).