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When the amount a student can borrow isn’t enough to cover the cost of attendance, parents may decide to take out additional loans. Parents of dependent undergraduate students can apply for a Direct PLUS Loan, also known as a Parent PLUS Loan.
Qualifying for a Parent PLUS Loan involves meeting specific eligibility criteria, including a credit check and federal aid requirements. This guide will walk you through everything you need to know about Parent PLUS Loan eligibility so you can make an informed decision about funding your child’s education.
Key Points
• Parent PLUS Loans allow parents of dependent undergraduate students to borrow up to $20,000 per academic year, up to a total of $65,000. For parents of students continuing in a program for which they borrowed Direct Loans before July 1, 2026, the annual maximum is the full cost of attendance, minus other financial aid.
• There is no minimum credit score required, but applicants must not have adverse credit history, such as recent delinquencies, defaults, or bankruptcies.
• Repayment begins at disbursement. Although deferment is possible, interest will continue to accrue.
• Parent PLUS Loans come with an origination fee and generally cannot be transferred to the student.
• Alternatives include scholarships, grants, student loans, and private parent loans, which may offer different terms and interest rates.
What Are Parent PLUS Loans?
A Parent PLUS Loan is a type of loan that is part of the Direct Loan Program administered by the U.S. Department of Education. As mentioned, PLUS Loans can be borrowed by parents of undergraduate students. New graduate and professional students are no longer eligible for PLUS Loans.
Parent PLUS Loans generally have higher interest rates than other Direct Loans. For Parent PLUS Loans issued in the loan year starting July 1, 2026, the interest rate is 9.07%, while the interest rate for Direct Subsidized and Unsubsidized Loans to undergraduate students is 6.52%.
Interest rates for federal student loans are fixed, meaning they stay the same over the entire term of the loan. You generally can’t transfer a Parent PLUS Loan to your child down the line, but your child may be able to apply for student loan refinancing later on and, if they qualify and it makes sense to do so, use it to pay off the loan.
Recommended: A Guide to Refinancing Student Loans
How Much Can You Borrow for a Parent PLUS Loan?
Congress established the Parent PLUS Loan program in 1980 with caps on how much parents could borrow. Those limits were eliminated in 1992. In 2025, new limits were introduced. Parents of children who were enrolled in a program before July 1, 2026, and have previously taken out Direct Loans for that program are still able to borrow up to the full cost of attendance at their child’s institution (which the school determines), after any other financial aid the student receives. Parents of new undergraduates can borrow up to $20,000 per academic year, up to a total of $65,000.
Parent PLUS Loan Eligibility Requirements
Credit Score Requirements
While there is not a specific credit score requirement for borrowing a Parent PLUS Loan, borrowers with an adverse credit history may not qualify to borrow this type of loan. The U.S. Department of Education defines an adverse credit history as meeting any of the following criteria:
• Having accounts with a total balance of more than $2,085 that are 90 or more days delinquent or debts that have been placed in collections or have been charged off within two years of the date of the credit report
• Having defaulted on a loan within five years of the credit report
• Having filed for bankruptcy within five years of the credit report
• Having experienced repossession or foreclosure within five years of the credit report
• Having charged off a federal student loan within five years of the credit report
• Having experienced wage garnishment or a tax lien within the five years prior to the credit report
Parents with an adverse credit history who are denied a Parent PLUS Loan may still be able to qualify for a Parent PLUS Loan if they add an endorser or provide supporting documentation to the U.S. Department of Education that indicates there are extenuating circumstances surrounding the adverse credit history.
Who Can Apply for a Parent PLUS Loan?
To apply for a Parent PLUS Loan, potential borrowers must be the biological or adoptive parent or, in certain situations, the stepparent of a dependent undergraduate student. The student must be enrolled in a participating school at least half-time.
Unless a grandparent has legally adopted the student, they are unable to borrow a Parent PLUS Loan.
Other Eligibility Criteria for Parent PLUS Loans
In addition to being the parent of the student and not having an adverse credit history, parent borrowers also must meet the basic eligibility requirements for federal student aid, such as being a U.S. citizen or eligible non-citizen.
What if You Aren’t Eligible for a Parent PLUS Loan?
If you aren’t eligible for a Parent PLUS Loan, you can review the student loans, scholarships, and grants available to your undergraduate student. If these options are not enough to cover the cost of tuition and other expenses, you might consider borrowing a private parent student loan to help your child pay for their education.
Private student loans are awarded by private lenders based on personal financial factors such as income and credit score.
Applying for a PLUS Loan
Before applying for a Parent PLUS Loan, you should ensure your child has completed their Free Application for Federal Student Aid (FAFSA®). Once this has been completed, you can apply for a Parent PLUS Loan. Typically, you’ll fill out an online application at StudentAid.gov, though some schools have a different process and require you to request a loan through the institution’s financial aid office.
StudentAid.gov has a list of all schools that allow you to apply through the website. If you have any questions, you should contact the financial aid office at your child’s school.
Recommended: How to Complete the FAFSA Step by Step
Pros and Cons of a Parent PLUS Loan
As with most financial decisions, there are pros and cons to Parent PLUS Loans.
Pros of a PLUS Loan
One of the biggest benefits of Parent PLUS Loans is that they allow parents to borrow substantial amounts to help their child pay for college.
Another pro is that there are no minimum credit score requirements. While there is a credit check, so long as parents meet the adverse credit requirements, they stand a reasonably good chance of being approved for a Parent PLUS Loan.
Cons of a PLUS Loan
One negative is that Parent PLUS Loans cannot be transferred to the student borrower. They are the responsibility of the parents, and they are legally responsible for repaying the loan.
Parent PLUS Loans also have an origination fee of 4.228%.
Another con is that parents are expected to begin repayment as soon as the loan is disbursed. While it is possible to apply for a deferment, interest will continue to accrue during this time.
When repaying Parent PLUS Loans, borrowers with loans disbursed on or after July 1, 2026, have only one option available to them, which is the Tiered Standard Plan. Consolidating a Parent PLUS Loan no longer allows access to other repayment plans.
| Pros of Parent PLUS Loans | Cons of Parent PLUS Loans |
|---|---|
| Borrowing limits. For new loans, parents are able to borrow up to $20,000 per academic year, up to a total of $65,000 per student. | Cannot be transferred. Parents are legally required to repay Parent PLUS Loans, and they cannot typically be transferred to the student. |
| No credit score requirements. While there is a credit check, there are no minimum score requirements. Potential borrowers just need to not have an adverse credit history. | Origination fees. In addition to interest, Parent PLUS Loans also have an origination fee. |
| Repayment begins at disbursement. Parents can request a deferment, but interest will continue to accrue. |
Private Student Loans
When it comes to evaluating private student loans vs. parent PLUS loans, generally, federal student loan options are a strong starting place for most borrowers. That’s because federal student loans come with borrower protections and often with lower interest rates. Students and parents who have exhausted their federal aid options may want to consider taking out loans from a private lender.
Private student loans are offered by banks, credit unions, and online lenders to qualifying undergrads, graduate students, and parents. Student loans can be used to cover up to 100% of school-certified costs, which typically include expenses such as tuition, books, supplies, room and board, and food.
The Takeaway
Parent PLUS Loans offer the flexibility to borrow up to $20,000 per academic year, but approval hinges on passing a basic credit check and meeting general federal aid criteria. Parents should weigh the responsibilities of borrowing carefully, including repayment terms, interest rates, and the potential impact on their financial future.
If you’ve exhausted all federal student aid options, no-fee private student loans from SoFi can help you pay for school. The online application process is easy, and you can see rates and terms in just minutes. Repayment plans are flexible, so you can find an option that works for your financial plan and budget.
FAQ
Does everyone automatically get approved for Parent PLUS Loans?
No, not everyone gets approved for a Parent PLUS Loan. In addition to being the parent of an undergraduate student and meeting basic eligibility requirements, the U.S. Department of Education requires that parent borrowers not have an adverse credit history in order to borrow a PLUS Loan.
Parents who are denied a Parent PLUS Loan because of an adverse credit history may be able to add an endorser to their application or file paperwork with the Department of Education to prove there were or are extenuating circumstances related to their adverse credit history.
Are Parent PLUS Loans based primarily on income?
Parent PLUS Loans are not primarily based on income. Instead, eligibility is determined by a basic credit check to ensure the borrower has no adverse credit history.
What is the maximum borrowable amount of Parent PLUS Loans?
Parents borrowing Parent PLUS Loans to support children who were enrolled in their programs before July 1, 2026, and have previously taken out Direct Loans for those programs can borrow up to the full cost of attendance, minus any financial aid received. Parents of new undergraduates can borrow up to $20,000 per academic year, up to a total of $65,000.
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