The Parent Plus Loan: What You Need to Know

If you’re a parent of a college student, you may be considering taking out a Parent Plus Loan to help with tuition and other expenses. Here’s what you need to know about this type of loan.

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What is the Parent Plus Loan?

The Parent Plus Loan is a federal student loan that is available to parents of dependent undergraduate students. This loan can be used to help pay for the student’s tuition, room and board, books, and other expenses. Parents who take out this loan are responsible for repayment, and the interest rate is variable. repayment terms are flexible, and there is no origination fee.

How to Apply for the Parent Plus Loan

The first step is to fill out and submit the Free Application for Federal Student Aid (FAFSA®) form. Be sure to include your parent’s information on the form.

The next step is to complete a PLUS Loan Request Form. You can get this form from the financial aid office at the school your child is attending or from the Direct PLUS Loan Application and Master Promissory Note website.

Your parent will need to sign the PLUS Loan Request Form to agree to repay the loan.

If your parent is approved for the loan, he or she will need to complete a Master Promissory Note (MPN) at This legally binding document explains the terms and conditions of the Direct PLUS Loan program and lists your rights and responsibilities as a borrower.

How the Parent Plus Loan Works

The PLUS Loan is a federal loan program that helps parents and guardians pay for their child’s education. PLUS Loans can be used to cover the cost of tuition and fees, room and board, books and supplies, and other education-related expenses.

To apply for a Parent PLUS Loan, the first step is to complete the Free Application for Federal Student Aid (FAFSA). Then, the parent or guardian will need to sign a Master Promissory Note (MPN) and complete a PLUS Loan Application.

Once these steps are completed, the Department of Education will process the loan and send the funds to the school. The school will then apply the funds to the student’s account. Afterward, the parent or guardian will begin making payments on the loan.

Parent PLUS Loans have a fixed interest rate of 7.08% for loans disbursed between July 1, 2020 and June 30, 2021. Repayment on Parent PLUS Loans begins 60 days after the final disbursement is made. Parents or guardians have 10 years to repay their loan in full.

Parent Plus Loan repayment options

There are a few different repayment options available for Parent Plus Loans, and the option that you choose can have a big impact on how much you ultimately end up paying for your loan.

The standard repayment plan for Parent Plus Loans is a fixed-rate plan that requires you to make payments for up to 10 years. Under this plan, your monthly payments will be the same each month, and you’ll have your loan paid off within 10 years.

If you’re having trouble making your monthly payments under the standard repayment plan, you can switch to an income-based repayment plan. These plans base your monthly payment amount on your income and family size, and they can help make your payments more affordable. However, they also extend the length of your loan, so you’ll end up paying more in interest over the life of the loan.

Finally, if you’re having serious financial difficulties, you can apply for a deferment or forbearance. These options allow you to temporarily postpone or reduce your payments, but they will also increase the amount of interest that accrues on your loan.

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