Parent PLUS Loans vs. Private Student Loans
- Fixed interest rate - 7.9%
- Borrow up to the cost of education
Federal Parent PLUS Loans and Private College Loans can both help cover the difference between your total cost of education and other financial aid you have received. Both loans can be used to pay for educational expenses such as tuition, books, housing, school fees, student computers, supplies and more.
Difference Between PLUS and Private Loans
Two primary differences: First, the parent is the primary borrower on a PLUS loan and the student is the primary borrower on the private student loan.
The other difference between these two college loans is the interest rate. Federal PLUS loans are based on a fixed interest rate of 7.9%. Private Loan rates are based on borrower credit and come in both fixed and variable options depending on the lender. We recommend that you always consider scholarships, grants and federal loans, like the Parent PLUS Loan, before applying for Private Loans.
Federal PLUS Loan and Private Student Loan Comparison
| Parent PLUS Loan | Private Student Loan | |
|---|---|---|
| Primary Borrower | Parent | Student |
| Interest Rate Type | Fixed | Fixed and Variable Options |
| Requires school certification |  |
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Preliminary approval in
as little as 15 minutes |
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| 0.25% rate reduction for automatic payments | |
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| Up to 20 years repayment term | |
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| Funds disbursed to the school | |
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Federal Parent PLUS and "Certified" Private Student Loans are both disbursed to the school's financial aid office. For more information about private student loans, check out our frequently asked questions page, or simply get started and apply online.
Compare student loan programs and college loan lenders at StudentLoanNetwork.com.
