Applying for a Parent PLUS Loan: When it comes to financing a college education, many parents turn to the Parent PLUS Loan to bridge the gap between financial aid and the full cost of attendance. In 2025, applying for a Parent PLUS Loan is more straightforward than ever—but it still requires attention to detail. Whether you’re a first-time borrower or a returning applicant, this guide breaks down the process so it’s easy to understand and execute.
Applying for a Parent PLUS Loan
| Feature | Details |
|---|---|
| Loan Name | Federal Direct Parent PLUS Loan |
| Interest Rate (2024–2025) | 9.08% fixed |
| Loan Origination Fee | Approx. 4.228% |
| Max Borrowing Limit | Full cost of attendance minus other aid |
| Repayment Start | 60 days after final disbursement (with deferment options) |
| Official Application Site | StudentAid.gov |
Applying for a Parent PLUS Loan in 2025 is a practical way to invest in your child’s future while maintaining control over the borrowing process. From completing the FAFSA to signing the Master Promissory Note, each step is manageable with the right guidance. Make sure to explore all your options, read the fine print, and consult your child’s financial aid office if you have questions.
What is a Parent PLUS Loan?
The Parent PLUS Loan is a federal loan available to parents of dependent undergraduate students. Issued by the U.S. Department of Education, it’s designed to help families cover educational expenses not met by other forms of aid. Unlike student loans, the parent, not the student, is legally responsible for repayment.
Why Parents Choose PLUS Loans
Many families find that scholarships, grants, and student loans don’t fully cover the cost of college. Parent PLUS Loans help fill that financial gap with:
- High borrowing limits
- Fixed interest rates
- Deferment while the student is enrolled
Applying for a Parent PLUS Loan: How to Apply for a Parent PLUS Loan in 2025?
Step 1: Complete the FAFSA
Your child must complete the Free Application for Federal Student Aid (FAFSA) for the 2025–2026 academic year. Without this, you can’t apply for the PLUS Loan. FAFSA opened on December 1, 2024. (Learn more)
Step 2: Check Your Eligibility
To qualify, you must:
- Be the biological, adoptive, or stepparent of a dependent undergraduate student
- Be a U.S. citizen or eligible noncitizen
- Have no adverse credit history, or get an endorser if you do (Bankrate)
Step 3: Gather Required Information
Have these ready:
- Your FSA ID (Create one here)
- Student’s Social Security number
- Name of the school
- Your income and employment details
Step 4: Apply Online at StudentAid.gov
Go to the Parent PLUS Loan application page and sign in with your FSA ID. Click “Apply for a PLUS Loan for Parents.”
Step 5: Enter Loan Details
You’ll be asked to:
- Choose the award year (e.g., 2025–26)
- Enter the school name
- Specify the loan amount or allow the school to determine it
- Choose repayment options and deferment preferences
Step 6: Credit Check Process
The government performs a credit check as part of the application. If you have an adverse credit history, you can:
- Get a creditworthy endorser
- Submit documentation for extenuating circumstances
- Complete credit counseling
Step 7: Sign the Master Promissory Note (MPN)
If approved, sign your MPN electronically at StudentAid.gov/mpn/parentplus/landing. This is your agreement to repay the loan.
Step 8: Disbursement & Repayment
Funds are sent directly to your child’s school to cover tuition, housing, and other costs. Repayment starts 60 days after the final disbursement, unless deferred. Deferment is available while your child is:
- Enrolled at least half-time
- For 6 months after they graduate or drop below half-time
Additional Tips and Considerations
Interest Rate & Loan Fees
For loans disbursed between July 1, 2024, and June 30, 2025:
- Interest Rate: 9.08% (Federal Student Aid)
- Loan Origination Fee: 4.228%, deducted from disbursements
Loan Limits
You can borrow up to the full cost of attendance, minus any other financial aid received.
Repayment Options
Explore:
- Standard Repayment Plan
- Extended Repayment Plan
- Graduated Repayment Plan
- Income-Contingent Repayment (through consolidation) Consider using a loan calculator to estimate monthly payments: Loan Simulator
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FAQs on Applying for a Parent PLUS Loan
What credit score is needed for a Parent PLUS Loan?
There is no minimum credit score, but your credit history must be free of major issues like bankruptcies or defaults.
Can divorced parents both apply for PLUS Loans?
Yes. Each parent may apply separately, but cannot both receive the same funds. Only one parent signs the MPN.
Can I transfer the Parent PLUS Loan to my child?
No. Legally, the loan remains your responsibility. However, some private lenders allow refinancing in the student’s name later.
Is the interest on Parent PLUS Loans tax-deductible?
Yes, up to $2,500 in student loan interest may be deductible depending on your income level.
What happens if I’m denied?
Your child may become eligible for additional unsubsidized federal loans. Alternatively, you can appeal or use an endorser.
