Parent PLUS Loans (Direct PLUS for Parents)
Federal Direct PLUS loans that parents of dependent undergraduates can take out to help pay for college.
Parent PLUS Loans are federal loans that parents of dependent undergraduate students can take out to help pay for college expenses. These loans are designed for parents who need to borrow money beyond what their student receives through other federal aid. Parent PLUS borrowers typically include parents seeking to cover tuition, fees, room and board, and other education-related costs. Since loan terms, eligibility requirements, and other details may change, families should verify current information directly through studentaid.gov before applying.
Who it's for
Biological or adoptive parents (and in some cases stepparents) of a dependent undergraduate student enrolled at least half-time. The parent — not the student — is the borrower and is legally responsible for repaying the loan. You must not have an adverse credit history (or you can qualify with an endorser or documented extenuating circumstances).
How the interest rate is set
Direct PLUS Loans carry a fixed interest rate set by Congress each year for loans first disbursed on or after July 1, fixed for the life of the loan, and typically higher than Direct Subsidized/Unsubsidized rates. Check studentaid.gov for the current rate.
How much you can borrow
There's no fixed annual dollar cap — a parent can borrow up to the cost of attendance minus any other financial aid the student receives, as certified by the school.
Key terms at a glance
| Loan type | Federal (Direct PLUS Loan) |
| Borrower | The parent (not the student) |
| For | Parents of dependent undergraduates |
| Credit check | Required (adverse credit history can disqualify you) |
| Interest rate | Fixed; set by Congress each year |
Pros and cons
Potential advantages
- Lets parents help cover the full cost of attendance (minus other aid).
- Fixed interest rate and federal protections, including some repayment and deferment options.
- Can be a more predictable option than some private parent loans because the rate is fixed and federally set.
Things to watch
- The parent is solely responsible for repayment — the debt is not the student's, and it generally can't be transferred to the student.
- Requires a credit check; adverse credit history can disqualify you.
- Higher interest rates and loan fees than Direct Subsidized/Unsubsidized Loans, and interest accrues from disbursement.
- Parent PLUS borrowers have fewer income-driven repayment options than students (typically only after consolidating into a Direct Consolidation Loan).
Sources: Federal Student Aid — PLUS Loans; CFPB — Student Loans. Federal loan details follow U.S. Federal Student Aid (studentaid.gov); always confirm current rates and limits there.
Compare your parent plus loans and refinance options
Want help weighing your choices? Tell us a little about your situation and we'll help you compare student-loan and refinance options from vetted partners. It's free, with no obligation — and we never sell your personal information.
Compare student loan & refinance options →Frequently asked questions
Is the parent or the student responsible for a Parent PLUS Loan?
The parent is the borrower and is legally responsible for repaying a Parent PLUS Loan. It is the parent's debt, not the student's, and it generally cannot be transferred to the student.
Can a Parent PLUS Loan be used with income-driven repayment?
Parent PLUS Loans are eligible for fewer repayment plans than student loans. To access an income-driven plan, a Parent PLUS borrower typically first has to consolidate into a Direct Consolidation Loan. Check studentaid.gov for current rules.