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Direct PLUS Loans for Parents
Overview
Direct PLUS Loans for parents of undergraduate students are available through the federal government. These loans have a fixed interest rate.
The school determines the actual amount of the Direct PLUS Loan for parents. A parent may not borrow more than the difference between the school's cost of attendance and the amount of the child's student aid package.
Eligibility
To receive a Direct PLUS Loan for parents, the parent and student must meet certain requirements.
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Parent Eligibility
The parent must:
- Be the student's natural parent, adoptive parent, or in some cases, stepparent
- Be a U.S. citizen or eligible noncitizen
- Not be in default on an education loan or owe any education grant refunds
- Be creditworthy or have a creditworthy co-signer
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Student Eligibility
The undergraduate student must:
- Be a dependent student
- Be a U.S. citizen or eligible noncitizen
- Be accepted for enrollment in a participating institution of higher learning or, if enrolled, be making satisfactory progress
- Be classified as at least a half-time student working toward a degree or certificate
- Not be in default on an education loan or owe any education grant refunds
- Be registered with Selective Service, if required
If the parents are separated or divorced, either parent (or both parents) may apply for a Direct PLUS Loan, not just the parent who provides information on the FAFSA® (Free Application for Federal Student Aid).
How to Apply
Direct PLUS Loans for parents are available only through the federal government. Please visit Student Aid on the Web for instructions on how to apply.
How Much Debt?
As a general rule of thumb, your debt payments (housing, credit cards, loans, etc.) should not exceed more than 37% of your gross income.
Keep this in mind if you take out a Direct PLUS Loan to help pay for your child's education.
Want to Know More?
- Use our loan repayment calculator to estimate your monthly payment amount.
- In general, it takes 10 years or more to pay off a Direct PLUS Loan. If more than one child is in school, a family may have multiple Direct PLUS Loans at the same time.