Understanding Parent PLUS Loans: A Guide for Parents
- Author: Miguel Waters
- Posted: 2025-10-18
Parent PLUS Loans are a way for parents to help pay for their child's college education.
These loans are part of a federal loan program and are available to parents who have children in college and meet certain conditions.
Who Can Get a Parent PLUS Loan?
To be eligible for a Parent PLUS Loan, you must be the parent of a student (this includes biological, adoptive, or stepparents) who depends on you financially and is going to college at least half-time at a school that participates in the federal student aid programs.
It's important to note that grandparents and legal guardians can't get a Parent PLUS Loan unless they have legally adopted the student.
What You Need to Qualify
- You should not have a bad credit history, though some exceptions are made.
- You must meet the general requirements for federal student financial help.
Costs Involved
From July 1, 2024, to July 1, 2025, the interest rate for these loans is fixed at 9.08%. Also, there's a loan fee of 4.228% for money given out after October 1, 2020.
Learn more: $2,000 Child Tax Credit: How It Will Impact Your 2025 IRS Tax Return
Applying for a Parent PLUS Loan
If you fit all the requirements, you'll typically apply for the loan online. Some schools might have their own ways of doing this.
You can find a list of schools that work with the Direct Loan program on the website. If your child’s school has a different loan application process, you should talk to the school's financial aid office.
Once you're approved, you'll need to agree to the loan's terms by signing a Direct PLUS Loan Master Promissory Note (MPN). If you're getting loans for more than one child, you'll have to sign a separate note for each one.
For the exact steps, it's best to speak with the financial aid office where your child is or will be studying.
Remember, the loan is in your name, not your child's, and it's your responsibility to repay. Also, you can only cancel the loan before the money is sent to your account.
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Related Reading: Should I Use My Savings to Pay Off a Loan?
