Parent Plus Loan

A Parent PLUS Loan is a federal loan program available to parents of Dependent undergraduate students to help cover the costs of their child’s education. These loans are issued by the U.S. Department of Education and allow parents to borrow up to the total cost of attendance (minus any other financial aid received) for their child. The loan is in the parent’s name, and they are responsible for repayment.

Examples of cases include:

• Case 1: A parent borrows $10,000 through a Parent PLUS Loan to cover tuition and fees for their child attending a private university.
• Case 2: A parent takes out a Parent PLUS Loan of $15,000 to pay for their child’s living expenses while studying at a community college.
• Case 3: A parent utilizes a Parent PLUS Loan to finance their child’s study abroad program, covering travel and accommodation costs.

Interest Rates for Parent PLUS Loans are fixed, and parents may also choose to defer payments while their child is in school. However, unlike other federal loans, Parent PLUS Loans require a Credit Check, and borrowers may need a co-signer if they have an adverse Credit history.