Parent PLUS Loan Information
Federal Parent PLUS Loans enable parents with good credit histories to borrow money with which to pay the education expenses of their children. Each child must be a dependent undergraduate student enrolled at least half time.
About the Parent PLUS Loan
- The primary benefit of the PLUS Loan is that parents can borrow federally guaranteed low interest loans to help pay for their child’s education.
- A Federal PLUS Loan allows parents to borrow the total cost of undergraduate education including tuition, room and board, supplies, lab expenses and travel, less any other aid.
- These parent loans are non-need based. Eligibility for the PLUS Loan depends on a modest credit check that determines whether the parent has any adverse credit. An adverse credit history is defined as being more than 90 days late on any debt or having any Title IV debt (including a debt due to grant overpayment) within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off.
- The interest rate on the Direct PLUS Loan is fixed at 6.41%.
- Unlike other type of loans, including home equity, Parent PLUS Loans require no collateral
- Interest may be tax deductible.
You can learn more about the Stafford Loan program by visiting the Federal Student Aid on the Web.