Parent PLUS loans

Allows parents to borrow money to pay for a dependent student's college education
Loan is in parent’s name and parent is responsible for the loan (not student)
No collateral is needed
Requires a credit check, usually only looking for adverse credit

Interest rates

Loans first disbursed on or after July 1, 2006 have a fixed interest rate of 8.5 percent.
Loans first disbursed between July 1, 1998 and June 30, 2006 have a variable interest rate with a cap of 9 percent. The interest rate is adjusted each year on July 1 (your loan holder will notify you of interest rates changes annually). As of July 1, 2007, the variable rate is 8.02 percent.
If you have a loan first disbursed prior to July 1, 1998, contact your loan holder to determine the interest rate.

Loan limits

The annual maximum that may be borrowed under this program is the difference between the cost of education minus any financial aid received. There is no aggregate maximum.

Loan programs

You can borrow a PLUS loan under one of two federal student loan programs, each with the same general terms, conditions, interest rates, benefits and loan amounts.

Federal Family Education Loan (FFEL) Program: Private lenders such as banks, credit unions, and savings and loan associations make the loans. You choose your lender.
Federal Direct Student Loan Program (FDSLP): The U.S. Government makes loans through schools

Your student's school usually will participate in one of the programs.

Loan repayment

You have a variety of repayment options for PLUS loans. Learn more.

Deferment and forbearance (solutions for loan repayment problems)

Find out about options if you have problems repaying your PLUS loan.

Cancellation, forgiveness, and discharge

Learn more about cancellation of PLUS loans.

More information

Applying for a Federal PLUS Loan
Alternatives to a Federal PLUS Loan
Understanding PLUS loan borrowing
PLUS loan delinquency and default