The Parent PLUS Loan is a federal loan program that allows parents to borrow money to help pay for their child's college education. This loan is available to parents of dependent undergraduate students who are enrolled at least half-time in a degree program at an eligible school.
The Parent PLUS Loan has a fixed interest rate and a repayment period of up to 10 years. The interest rate is currently 7.54%. You can apply for a Parent PLUS Loan online or by mail.
To apply for a Parent PLUS Loan, you will need to provide the following information:
apply for parent plus loan
Parent PLUS Loan is a federal loan program to help parents pay for their child's college education.
- Available to parents of dependent undergraduate students
- Fixed interest rate, currently 7.54%
- Repayment period up to 10 years
- Apply online or by mail
- Provide personal and financial information
- Credit check required
- Cosigner may be required
- Loan amount up to cost of attendance minus other financial aid
- Repayment begins after a six-month grace period
- Deferment and forbearance options available
The Parent PLUS Loan can be a helpful way to pay for your child's college education. However, it is important to understand the terms and conditions of the loan before you apply.
Available to parents of dependent undergraduate students
The Parent PLUS Loan is available to parents of dependent undergraduate students. A dependent undergraduate student is a student who:
- Is enrolled at least half-time in a degree program
This means that the student is taking at least 6 credit hours per semester.
- Is attending an eligible school
This includes most colleges and universities in the United States.
- Has not earned a bachelor's degree
The student can be pursuing a first bachelor's degree or a second bachelor's degree.
- Meets other eligibility requirements
These requirements include being a U.S. citizen or eligible non-citizen and having a good credit history.
If you are the parent of a dependent undergraduate student, you may be eligible to apply for a Parent PLUS Loan. The loan can be used to pay for your child's tuition, fees, room and board, and other educational expenses.
Fixed interest rate, currently 7.54%
The Parent PLUS Loan has a fixed interest rate, which means that the interest rate will not change over the life of the loan. The current interest rate for the Parent PLUS Loan is 7.54%. This rate is set by the U.S. Department of Education and is subject to change.
The fixed interest rate for the Parent PLUS Loan is higher than the interest rates for some other federal student loans, such as the Direct Subsidized Loan and the Direct Unsubsidized Loan. However, the Parent PLUS Loan is still a good option for parents who need to borrow money to pay for their child's education.
The fixed interest rate for the Parent PLUS Loan can be beneficial for parents who are concerned about rising interest rates. If interest rates increase in the future, the parent will still be paying the same interest rate on their Parent PLUS Loan.
Parents who are considering applying for a Parent PLUS Loan should be aware of the fixed interest rate and compare it to the interest rates for other loans. Parents should also consider their own financial situation and determine if they can afford to repay the loan.
The Parent PLUS Loan can be a helpful way to pay for your child's college education. However, it is important to understand the terms and conditions of the loan before you apply.
Repayment period up to 10 years
The Parent PLUS Loan has a repayment period of up to 10 years. This means that you will have up to 10 years to repay the loan. The repayment period begins after a six-month grace period.
- Monthly payments
You will make monthly payments on your Parent PLUS Loan. The amount of your monthly payment will depend on the amount of money you borrowed and the length of your repayment period.
- Fixed or graduated repayment plan
You can choose to repay your Parent PLUS Loan on a fixed or graduated repayment plan. With a fixed repayment plan, your monthly payments will be the same amount over the life of the loan. With a graduated repayment plan, your monthly payments will start out lower and gradually increase over time.
- Deferment and forbearance
You may be eligible for deferment or forbearance if you experience financial hardship. Deferment allows you to temporarily postpone making payments on your loan. Forbearance allows you to temporarily reduce or suspend your loan payments.
- Loan forgiveness
You may be eligible for loan forgiveness if you work in certain public service jobs. For example, you may be eligible for loan forgiveness if you are a teacher, a nurse, or a social worker.
It is important to understand the repayment terms of the Parent PLUS Loan before you apply. You should make sure that you can afford to repay the loan before you borrow the money.
Apply online or by mail
You can apply for a Parent PLUS Loan online or by mail. The online application is available on the Federal Student Aid website. The mail-in application can be downloaded from the Federal Student Aid website or obtained from your child's school.
To apply for a Parent PLUS Loan, you will need to provide the following information:
- Your personal information, such as your name, address, and Social Security number
- Your financial information, such as your income and assets
- Your child's school information, such as the school name and address
- Your child's financial aid information, such as the amount of financial aid your child is receiving
If you are applying online, you will need to create an account on the Federal Student Aid website. Once you have created an account, you can start the application process. The online application is typically faster and easier than the mail-in application.
If you are applying by mail, you will need to print out the application and fill it out by hand. Once you have completed the application, you will need to mail it to the address provided on the application.
The Parent PLUS Loan application process can take several weeks. Once your application is approved, you will receive a loan award letter. The loan award letter will tell you how much money you have been approved for and the terms of the loan.
Provide personal and financial information
When you apply for a Parent PLUS Loan, you will need to provide the following personal and financial information:
- Your name, address, and Social Security number
This information is used to identify you and to verify your eligibility for the loan.
- Your date of birth
This information is used to verify your age and to ensure that you are at least 18 years old.
- Your citizenship status
You must be a U.S. citizen or an eligible non-citizen to be eligible for the Parent PLUS Loan.
- Your income and assets
This information is used to determine your creditworthiness and your ability to repay the loan.
You will also need to provide information about your child, such as their name, Social Security number, and date of birth. You will also need to provide information about your child's school, such as the school name and address.
Credit check required
As part of the Parent PLUS Loan application process, you will be required to undergo a credit check. This is to assess your creditworthiness and to determine your eligibility for the loan.
- What is a credit check?
A credit check is a review of your credit history. It includes information such as your credit score, your payment history, and any outstanding debts.
- Why is a credit check required?
A credit check is required to assess your creditworthiness and to determine your eligibility for the Parent PLUS Loan. Lenders want to make sure that you have a good credit history and that you are able to repay the loan.
- What happens during a credit check?
During a credit check, the lender will request your credit report from one or more credit bureaus. The credit report will contain information about your credit history, including your credit score, your payment history, and any outstanding debts.
- What if I have bad credit?
If you have bad credit, you may still be eligible for a Parent PLUS Loan. However, you may be required to pay a higher interest rate or you may need to provide a cosigner.
It is important to be aware of the credit check requirement before you apply for a Parent PLUS Loan. You should check your credit score and make sure that you have a good credit history. If you have bad credit, you may want to consider getting a cosigner or applying for a different type of loan.
Cosigner may be required
If you have bad credit or no credit history, you may be required to get a cosigner for your Parent PLUS Loan. A cosigner is someone who agrees to repay the loan if you are unable to do so.
- Who can be a cosigner?
A cosigner can be any creditworthy individual who is at least 18 years old and has a good credit history. Cosigners can be parents, grandparents, siblings, or friends.
- What are the benefits of having a cosigner?
Having a cosigner can help you get approved for a Parent PLUS Loan and may also help you get a lower interest rate.
- What are the risks of having a cosigner?
If you are unable to repay the Parent PLUS Loan, your cosigner will be responsible for repaying the loan. This can damage their credit score and make it difficult for them to get credit in the future.
- How do I find a cosigner?
You can ask a family member or friend to be your cosigner. You can also find a cosigner online.
If you are considering getting a cosigner for your Parent PLUS Loan, it is important to talk to them about the risks and benefits involved. You should also make sure that you understand the terms and conditions of the loan before you sign the agreement.
Loan amount up to cost of attendance minus other financial aid
The maximum amount that you can borrow with a Parent PLUS Loan is the cost of attendance at your child's school minus any other financial aid that your child is receiving. The cost of attendance includes tuition and fees, room and board, books and supplies, and other expenses.
- Cost of attendance
The cost of attendance is the total cost of attending your child's school for one academic year. This includes tuition and fees, room and board, books and supplies, and other expenses.
- Other financial aid
Other financial aid includes scholarships, grants, and work-study. If your child is receiving other financial aid, the amount of your Parent PLUS Loan will be reduced by the amount of other financial aid that your child is receiving.
- Loan amount
The maximum amount that you can borrow with a Parent PLUS Loan is the cost of attendance minus any other financial aid that your child is receiving.
- Example
For example, if the cost of attendance at your child's school is $20,000 and your child is receiving $5,000 in other financial aid, the maximum amount that you can borrow with a Parent PLUS Loan is $15,000.
It is important to note that the Parent PLUS Loan is not a need-based loan. This means that you do not have to demonstrate financial need in order to qualify for the loan. However, the amount of money that you can borrow is limited by the cost of attendance at your child's school and the amount of other financial aid that your child is receiving.
Repayment begins after a six-month grace period
Once your Parent PLUS Loan is approved, you will have a six-month grace period before you have to start making payments. This grace period begins after you graduate, leave school, or drop below half-time enrollment.
- Six-month grace period
The six-month grace period gives you time to find a job and get your finances in order before you have to start making loan payments.
- Repayment period
The repayment period for the Parent PLUS Loan is up to 10 years. You can choose to repay your loan on a fixed or graduated repayment plan.
- Monthly payments
Your monthly loan payments will depend on the amount of money you borrowed and the length of your repayment period. You can use a loan calculator to estimate your monthly payments.
- Deferment and forbearance
You may be eligible for deferment or forbearance if you experience financial hardship. Deferment allows you to temporarily postpone making payments on your loan. Forbearance allows you to temporarily reduce or suspend your loan payments.
It is important to make your loan payments on time and in full each month. If you miss a payment, you may be charged a late fee. If you are having trouble making your loan payments, you should contact your loan servicer immediately.
Deferment and forbearance options available
If you are experiencing financial hardship, you may be eligible for deferment or forbearance on your Parent PLUS Loan.
- Deferment
Deferment allows you to temporarily postpone making payments on your loan. You can apply for deferment if you are:
- Enrolled at least half-time in an eligible school
- Unemployed or experiencing economic hardship
- Serving in the military
- In a rehabilitation program for a disability
- Forbearance
Forbearance allows you to temporarily reduce or suspend your loan payments. You can apply for forbearance if you are experiencing a temporary financial hardship, such as a job loss or a medical emergency.
- How to apply for deferment or forbearance
To apply for deferment or forbearance, you will need to contact your loan servicer. You can find your loan servicer's contact information on your loan statement.
- Important information about deferment and forbearance
During deferment or forbearance, interest will continue to accrue on your loan. This means that the amount of money you owe will increase over time. You should only apply for deferment or forbearance if you are experiencing a temporary financial hardship.
If you are having trouble making your loan payments, you should contact your loan servicer immediately to discuss your options.
FAQ
If you are a parent considering applying for a Parent PLUS Loan, you may have some questions. Here are some frequently asked questions and answers to help you understand the Parent PLUS Loan program:
Question 1: What is the Parent PLUS Loan?
Answer 1: The Parent PLUS Loan is a federal loan program that allows parents to borrow money to help pay for their child's college education.
Question 2: Who is eligible for the Parent PLUS Loan?
Answer 2: Parents of dependent undergraduate students who are enrolled at least half-time in a degree program at an eligible school are eligible for the Parent PLUS Loan.
Question 3: What is the interest rate on the Parent PLUS Loan?
Answer 3: The interest rate on the Parent PLUS Loan is fixed at 7.54%.
Question 4: What is the repayment period for the Parent PLUS Loan?
Answer 4: The repayment period for the Parent PLUS Loan is up to 10 years.
Question 5: Can I defer or forbear my Parent PLUS Loan payments?
Answer 5: Yes, you may be eligible for deferment or forbearance on your Parent PLUS Loan payments if you are experiencing financial hardship.
Question 6: What are the benefits of getting a Parent PLUS Loan?
Answer 6: The Parent PLUS Loan can help you pay for your child's college education and may offer lower interest rates than private student loans.
Question 7: What are the risks of getting a Parent PLUS Loan?
Answer 7: The Parent PLUS Loan is a federal loan, which means that you are legally obligated to repay the loan. If you do not repay the loan, your credit score may be damaged and you may be subject to collection actions.
These are just a few of the questions that you may have about the Parent PLUS Loan. If you have additional questions, you should contact your loan servicer or the U.S. Department of Education.
Before you apply for a Parent PLUS Loan, you should consider all of your options and make sure that you understand the terms and conditions of the loan.
Tips
Here are a few tips for parents who are considering applying for a Parent PLUS Loan:
Tip 1: Shop around for the best interest rate.
The interest rate on the Parent PLUS Loan is fixed at 7.54%, but you may be able to find a lower interest rate on a private student loan. Be sure to compare interest rates from multiple lenders before you apply for a loan.
Tip 2: Consider your debt-to-income ratio.
Your debt-to-income ratio is the amount of debt you have compared to your income. Lenders will consider your debt-to-income ratio when you apply for a loan. If you have a high debt-to-income ratio, you may be denied for a loan or you may be offered a higher interest rate.
Tip 3: Make sure you understand the terms and conditions of the loan.
Before you sign the loan agreement, make sure you understand the terms and conditions of the loan. This includes the interest rate, the repayment period, and the fees that may be associated with the loan.
Tip 4: Make a plan for repaying the loan.
Before you take out a Parent PLUS Loan, make sure you have a plan for repaying the loan. This includes budgeting for the monthly payments and making sure you have a source of income to cover the payments.
By following these tips, you can increase your chances of getting approved for a Parent PLUS Loan and getting the best possible interest rate.
The Parent PLUS Loan can be a helpful way to pay for your child's college education. However, it is important to understand the terms and conditions of the loan before you apply.
Conclusion
The Parent PLUS Loan is a federal loan program that allows parents to borrow money to help pay for their child's college education. The loan has a fixed interest rate and a repayment period of up to 10 years. Parents can apply for the loan online or by mail.
Before you apply for a Parent PLUS Loan, it is important to consider all of your options and make sure that you understand the terms and conditions of the loan. You should also make sure that you have a plan for repaying the loan.
The Parent PLUS Loan can be a helpful way to pay for your child's college education. However, it is important to use this loan responsibly and to make sure that you can afford the monthly payments.
If you have any questions about the Parent PLUS Loan, you should contact your loan servicer or the U.S. Department of Education.