A Parent PLUS loan is a federal loan taken out by a parent to cover their child's education costs. It fills the gap after grants, scholarships and the student's own federal loans. It is also the federal loan with the fewest guardrails.
The three things that surprise parents
There is effectively no limit. You can borrow up to the full cost of attendance minus other aid. Unlike student loans, which cap out at figures that force a conversation, PLUS will let a family borrow far more than they can comfortably repay. The absence of a limit is not an endorsement.
The parent is solely liable. The student has no legal obligation whatsoever. If the plan is for the student to repay after graduation, that is a family arrangement with no legal force behind it. If they cannot or do not, the parent still owes it.
Rates and fees are higher. PLUS carries a higher fixed rate than Direct Subsidised and Unsubsidised loans, plus an origination fee deducted from each disbursement, so you repay more than the school received.
Interest accrues from disbursement. There is no subsidised version. Repayment generally begins once the loan is fully disbursed, though deferment while the student is enrolled can be requested. Deferring does not stop interest.
What PLUS does still offer
- Federal protections including deferment and forbearance.
- Discharge on the death of either the parent or the student.
- A limited path to income-contingent repayment, though only after consolidation, and the terms are less generous than plans available on student loans.
- No credit score requirement, only a check for adverse credit history.
Questions to answer before signing
- Can this be repaid on the parent's income alone, on the parent's timeline to retirement?
- Would a less expensive school, or two years at community college first, remove the need entirely?
- Has the student exhausted their own federal loans first?
- Has the family appealed the financial aid offer?
The short version
- The parent is solely liable. The student is not, legally, ever.
- Borrowing limits are effectively the full cost of attendance, which is a risk not a feature.
- Higher rate plus an origination fee, and interest accrues from day one.
- Exhaust the student's own federal loans and appeal the aid offer first.
Common questions
Can a Parent PLUS loan be transferred to the student?
No. There is no federal mechanism to transfer it. The only route is the student privately refinancing it in their own name, which requires their credit and forfeits federal protections.
What credit score is needed for a Parent PLUS loan?
There is no minimum score. The check looks for adverse credit history such as recent defaults or bankruptcies. An endorser can be added if you do not pass.
Is Parent PLUS eligible for forgiveness?
Only in limited circumstances, generally requiring consolidation first and access to income-contingent repayment. The terms are less generous than for student borrowers.