Parents PLUS Loans

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Parents PLUS Loans, FFEL and Direct Loans!

Parents PLUS Loans or Direct PLUS Loans, as they are also known, are a part of the Federal student aid program. They are available to parents of college students to help pay educational expenses. There are two versions of the Parents PLUS Loan. Through the Direct Loan Program, your loan funds will be sent directly to your child's school from the U.S. Department of Education.

Parents PLUS Loans issued after July 1, 2018, have a fixed interest rate, 7.6% for the Direct PLUS Loans. The interest is charged from the time of disbursement until the loan is paid off. There is also a fee of up 4.248% charged upon disbursment of the loan. For the Direct loan, the entire fee is paid to the government.

There is one big difference between PLUS loans and Stafford loans. Approval for the PLUS loans will require that the borrowers pass a credit check. Should they fail to pass, there is still a chance to get the loan by having someone else endorse (co-sign) the loan. This means they would be accepting responsibility for repaying the loan if your parents defaulted for any reason.

Maximum Loan Amounts

The maximum amount of the PLUS loan will equal your cost of attendance minus any financial aid you receive.

Parents can choose to begin repaying the loan either 60 days after receiving it or waiting until the student is not in school at least half time for six months. The interest begins accumulating immediately, so waiting for the latter time will mean that the balance to repay will have increased significantly.

To apply for a Direct PLUS Loan, your parents must complete an application and promissory note, go to the online Direct PLUS Loan Application for Parents on

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