PLUS Loans for Parents
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A federal Parent Plus loan helps parents pay for their child’s college expenses. This guide explains the basics of the Parent Plus loan, including interest rates, borrowing limits and how to apply.
Note: The information contained in this article is current as of July 2026 and will be updated, as necessary, to reflect any significant legislative or regulatory changes to federal student loans.
What is a Parent Plus Loan?
The federal Parent PLUS loan is a federal education loan taken out in a parent’s name. It’s part of the U.S. Department of Education’s Direct Loan Program.
How Does a Parent Plus Loan Work?
With PLUS loans, the parent is the borrower and is legally responsible for loan repayment. The federal government sends the loan money directly to the student’s school. Once the college's tuition, fees, room and board, and other charges are paid, any money left over may be refunded to the parents, or, if the parents authorize it, to the student.
What is the Parent Plus Loan Interest Rate?
The interest rate for federal PLUS loans is 9.07% for loans disbursed on or after July 1, 2026, through June 30, 2027. This rate is fixed for the life of the loan. The interest rate for PLUS loans is determined annually based on financial market conditions and will not exceed 10.5%.
In addition to interest, a 4.228% loan fee is subtracted from the loan amount, which means that when parents take out a $12,000 Plus loan, their child’s college will receive about $11,492, but the parents will still owe the full $12,000, plus interest. Interest begins accruing as soon as the money is sent to the child’s school. Parents can choose to pay interest while their child is in college or let it capitalize until the official repayment period begins.
What are the PLUS Loan Limits?
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Beginning with the 2026-2027 academic year, parent borrowing is capped, per student, at $20,000 per year with a lifetime borrowing limit of $65,000.
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Parents of students who enrolled in college before July 1, 2026 – and who have already borrowed a PLUS loan for that child – will not have their borrowing capped for a period of three years, or until the student is no longer enrolled in college, whichever occurs first. These parents may borrow up to — but not more than — the amount of their student’s estimated cost of attendance minus the amount of any other financial aid received for that academic year.
How Do You Qualify for a PLUS Loan?
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Be the biological or adoptive parent of a dependent undergraduate student. Under certain circumstances stepparents may also be eligible.
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Have a child enrolled at least half time at an eligible college or career school
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Be a United States citizen or eligible noncitizen
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Have a valid social security number
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Pass a credit check
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Meet all other eligibility requirements for federal student aid
If parents are turned down for a PLUS loan, their student may be eligible for higher Direct loan limits. Parents with an adverse credit history may receive a PLUS loan if a creditworthy person can serve as an endorser, or if they can demonstrate that their credit issues were due to extenuating circumstances.
How Do You Apply for a Parent Plus Loan?
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Parents must complete a Parent PLUS loan application.
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Their student must complete the Free Application for Federal Student Aid (FAFSA) and continue to submit a FAFSA each year. Students need to complete the FAFSA before their parents apply for a PLUS loan.
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If approved, parents must sign the Master Promissory Note (MPN) agreeing to the loan terms.
What Are the Repayment Terms for Parent PLUS Loans?
Parents generally have from 10 to 25 years to repay their Plus loan, depending on the amount they borrow. Parents may request to postpone their loan payments until six months after their student graduates or ceases to be enrolled in college at least half-time. Otherwise, payments will begin as soon as the student receives the loan.
Plus loans disbursed on or after July 1, 2026, are eligible for only the Tiered Standard repayment plan and are not eligible for income-driven repayment plans or public service loan forgiveness. Plus loans disbursed before July 1, 2026, may be eligible for other repayment options.
Can a Parent Plus Loan Be Transferred to a Student?
No. A Federal Parent Plus loan cannot be transferred into the student’s name under any circumstances. The parent borrower is legally responsible for repaying the loan.
While a Parent PLUS loan can help fill the gap when other financial aid falls short, it’s important for parents to consider how a Plus loan will impact their long-term financial goals, such as retirement or funding college for other family members. However, the Parent Plus loan’s federal protections, fixed interest rates and flexible repayment terms, make it a valuable option for many families.
