The Parent PLUS Loan is a loan from the government meant to help parents pay for their college-aged children's education when they need financial aid or want to ensure a better education for their child.
Who Can Get a Parent PLUS Loan?
To qualify for the loan, you must be the child's actual parent, adoptive parent, or stepparent, and your child must be enrolled at least part-time in a school that participates in the Parent PLUS program.
It's important you don't have a bad credit history, although there are some special cases where you can still get a loan. Grandparents or legal guardians can't get a PLUS Loan unless they have legally adopted the child.
Costs Involved
The interest on these loans fixed at 9.08% for any loans taken out between July 1, 2024, and July 1, 2025.
Additionally, there's a fee of about 4.23% that's added to loans given after October 1, 2020. Earlier loans might have different fees.
Learn more: $2,000 Child Tax Credit: How It Will Impact Your 2025 IRS Tax Return
How to Apply for a Parent PLUS Loan?
To apply, you usually fill out an application online. However, some schools might do things a bit differently. You can find a list of schools that take part in the Direct Loan program and how to apply on the relevant website.
But if your child's school has a different process, it’s best to talk directly with the school's financial aid office.
To take out the loan, you'll need to agree to its terms by signing the Direct PLUS Loan Master Promissory Note (MPN). If you have more than one child you're applying for, you'll need a separate MPN for each.
You can get more personalized advice or information by contacting the financial aid office at the school your child is attending.
Remember, this loan is in your name—you can't transfer it to your child. The loan can only be canceled before the school receives the funds.
-
Check out: Should I Use My Savings to Pay Off a Loan?
