Parent PLUS Student Loans
StudentLoans.com can help parents seeking an affordable financing solution to cover up to 100% of the cost of your child's college education. Parent PLUS student loans are a smart financial strategy for parents of a dependent undergraduate student.
Parent PLUS loans are not based on financial need or income, so you cannot be turned down for making too much or too little money. The only criteria other than basic eligibility requirements is that you have at least a fair credit score and clean credit history without any adverse action.
Federal Parent PLUS loans are the most widely used, low-cost education loan available for parents. Parent PLUS loans are a great way for you to secure the financial aid you need in order to meet your child's needs for college, university or trade school.
However, there are instances where parents should consider co-signing on a private student loan for their children. Depending on credit strength, a private student loan could have a lower interest rate. Learn more and compare private student loans with PLUS loans.
Parent PLUS Loan Benefits
There are additional benefits of Parent PLUS Loans:
- The interest may be tax deductible.
- There is no prepayment penalty.
- You can consolidate your Federal Parent PLUS loan to benefit from one convenient payment and potentially lower your monthly payments.
Parent PLUS Loans are a great way to finance your child's education.
Parent PLUS Loan Interest Rates
Parent PLUS Loans carry a low, fixed interest rate which is set by the U.S. Department of Education. The current rate is 6.41% for loans disbursed during the 2013-2014 award year.
Parent PLUS Loan Fees
Currently, the Federal Direct Loan Program (FDLP) charges a 4% origination fee for all new PLUS loans created after July 1, 2010. This will be added to the loan repayment amount and is not required immediately upon signing the Master Promissory Note.
Parent PLUS Loan Eligibility
The federal Parent PLUS loan is available to you if you are the parent of an eligible, dependent undergraduate student. You may borrow up to the total cost of your child's education including tuition, books, housing (on or off campus), utilities, food, transportation, computers, travel and lab fees, minus any other financial aid your child has already received.
The Parent PLUS Loan is available to you if you are:
The parent of a dependent, undergraduate student enrolled in a college, university or other eligible post-secondary school at least half time,
- Eligible parent means that you are the biological, adoptive or step-parent.
- A citizen of the United States of America or eligible resident, non-citizen, and
- Meet federal minimum standards of creditworthiness.
Additionally, students must be:
- US Citizens or eligible resident, non-citizens,
- Less than 24 years of age as of December 31 of the academic year, and
- Unmarried with no dependents.