Parent PLUS Loans
Need help paying for your child's college education? The Federal Parent PLUS Loan provides fixed-rate education financing for parents of dependent undergraduate students.
PLUS loans can be used for tuition, fees, housing, books, supplies and more.
What steps should parents take to pay for college?
- Exhaust eligibility for scholarships, grants and other gift aid that doesn’t need to be repaid.
- Turn to the Federal Stafford loan and review the benefits of the Federal Parent PLUS loan.
- Consider Private Student Loans, which may be competitive with PLUS loan interest rates and offer cosigner release options.
The Federal Parent PLUS Loan provides fixed-rate education financing for parents of dependent undergraduate students. Federal PLUS loans may be used to pay for tuition, fees, housing, books and supplies, among other educationally related expenses.
Parents should contact the financial aid office at the student’s college to apply for a Federal Parent PLUS loan. Federal PLUS loan borrowers cannot have an adverse credit history. Students must file the Free Application for Federal Student Aid (FAFSA), even if they do not expect to qualify for need-based student aid.
Before borrowing to pay for school, be sure to exhaust eligibility for scholarships, grants and other gift aid (money that does not need to be repaid). Get started with the ScholarshipPoints program. Find scholarships at free scholarship matching web sites like the Edvisors college scholarships search. Next, turn to the Federal Stafford loan, one of the most popular student loan programs, and review the benefits of the Federal Parent PLUS loan.
If federal financial aid and scholarships aren't enough, consider private student loans, which are based on credit, not demonstrated financial need. Interest rates on private student loans may be competitive with interest rates on the Federal PLUS loan, if the student borrower and/or cosigner has excellent credit. Cosigner release options may be available.
Federal PLUS Loans as an Alternative Option
The Federal PLUS Loan provides parents with an alternative option for paying for their child's education. The benefits of the PLUS loan include a low fixed rate and favorable repayment terms. Some parents do not like the fact the the loan is in the parents name and therefore look for other options. Compare student loans and make sure you choose the right loan for your needs.
Graduate students can apply for a Graduate PLUS loan to cover tuition, books, supplies, housing expenses and more.