How to Apply for a Parent PLUS Loan

What Are Parent PLUS Loans?

Parent PLUS loans are federal student loans that parents can use to help cover a child's college costs when financial aid falls short. Parents of dependent students enrolled at least part time in eligible schools can apply for the loans. The parent, not the student, is responsible for repaying the loan.

Parent PLUS loans have fixed interest rates, but because the loans are unsubsidized, interest begins to accrue right away. For loans disbursed between July 1, 2026, and June 30, 2027, the parent PLUS loan interest rate is 9.07%.

New Parent PLUS Loan Limits

Previously, parent PLUS loans could be used to borrow up to the cost of attendance, minus any financial aid. However, for academic years beginning on or after July 1, 2026, the One Big, Beautiful Bill Act (OBBBA) caps parent PLUS loans at $20,000 annually per student and a lifetime limit of $65,000 per student.

If you or your child had a federal direct loan disbursed before July 1, 2026, you may be able to keep borrowing under the old limits for up to three years or until the student completes their course of study, whichever comes first. (Your student's school will determine if you qualify for this exception.) But if you are new to the parent PLUS program and are counting on the loan to fill shortfalls left by financial aid, you may need to adjust your expectations.

Learn more: PLUS Loan Changes: What Borrowers Need to Know

Parent PLUS Loan Eligibility Requirements

To qualify for a parent PLUS loan, both you and your student must meet eligibility requirements.

Parent Requirements

To be eligible for a parent PLUS loan, you must:

• Be the biological or adoptive parent (or stepparent in some instances) of a dependent undergraduate student.
• Meet credit history criteria. No minimum credit score is required for parent PLUS loans, but an adverse credit history—such as recent loan defaults, bankruptcies or charge-offs—may disqualify you.

Student Requirements

Your student must:

• Be your dependent.
• Be enrolled at least half time in a degree or certificate program at an eligible institution.
• Be a U.S. citizen or eligible noncitizen.

Learn more: Qualifying for Student Loans: What You Need to Know

How to Apply for Parent PLUS Loans

Step 1: Complete the FAFSA

Before you can apply for a parent PLUS loan, your student needs to submit the Free Application for Federal Student Aid (FAFSA) and receive their financial award notice. Unlike the parent PLUS loan application, the FAFSA application doesn't ask about your credit history, and there's no credit check. So, completing the FAFSA does not impact your credit score in any way.

Step 2: Check Your Student's Financial Aid Award

Schools your child has been accepted to will use the information from the completed FAFSA to determine how much financial assistance your child is eligible for. If your student has been accepted to more than one school, the financial aid awarded will likely differ for each. If at that point you determine you will need more financial assistance for your child to attend the school of their choice, you can apply for a parent PLUS loan.

Step 3: Decide How Much to Borrow

The cost of attendance includes tuition, room and board, and other educational expenses such as books. Your school will provide the cost of attendance to help you determine how much to borrow.

Step 4: Complete the Parent PLUS Application

You can fill out and submit the parent PLUS loan application through the Federal Student Aid website. You will need your student's verified Federal Student Aid ID and school name to get started.

The application will ask for your and your student's personal information, such as birth date and Social Security numbers. You'll also be asked for the school's information, specified loan period, how much you want to borrow and whether you want to defer loan payments while your student is enrolled in school and during the six-month grace period following graduation.

A credit check is required when you apply for a parent PLUS loan. If you have a security freeze on your credit report, you must contact the credit bureaus to have it lifted before your application can be processed.

Once you've applied, the application details will be forwarded to the school for processing. (If the college or university uses a different application process, you will receive an alert in the application portal.)

Step 5: Sign the Master Promissory Note

Parent PLUS loan applicants must complete a Master Promissory Note (MPN) before loan proceeds are disbursed. The MPN outlines the terms and conditions of the loan and serves as a legally binding agreement indicating your promise to repay what you borrow. You'll receive this document once you've completed the loan application.

Step 6: Funds Are Disbursed

Parent PLUS loan funds will be paid directly to your student's school. If the tuition is paid and there is money left over, the school will give it to you (or directly to your student, if you choose) to help cover additional educational expenses.

Be aware: Your student must fill out the FAFSA for each school year, and you must apply for a new parent PLUS loan each school year that you need it.

Can You Get a Parent PLUS Loan if You Have Low Credit?

There's no minimum credit score needed for parent PLUS loans, so you may be able to get a parent PLUS loan with bad credit. A credit check is conducted during the loan application process, but only to see if you have an adverse credit history.

Your credit history is considered "adverse" if you have specific credit problems, such as:

• Recent credit accounts totaling $2,085 or more that are 90 days delinquent, charged off or placed in collections
• A recent bankruptcy discharge, tax lien, wage garnishment or foreclosure

Even if it's determined you have an adverse credit history, you may be able to get a parent PLUS loan if:

• You file an appeal and can show that the decision was based on erroneous or outdated information or that there were other extenuating circumstances.
• You can get an endorser (similar to a cosigner) who doesn't have adverse credit and agrees to repay the loan if you can't.

PLUS loan credit counseling is mandatory if you have adverse credit history and decide to get an endorser or document extenuating circumstances to get approved for a loan.

Repayment Options for Parent PLUS Loans

Repayment for parent PLUS loans starts within 60 days of your last loan disbursement, but you can request loan deferment while the student is enrolled at a qualifying school at least half time. You can also ask for a six-month post-enrollment deferment when the benefiting student drops below half-time enrollment and/or graduates.

Parent PLUS loans disbursed on or after July 1, 2026, must be repaid under a new tiered standard repayment plan, which offers a fixed monthly payment over 10 to 25 years, based on the outstanding loan balance. If you have an existing parent PLUS loan and take out a new loan on or after July 1, 2026, the tiered standard repayment plan will be applied to your existing loan as well, which could change your monthly payment.

Understanding Capitalized Interest

Keep in mind that interest begins to accrue on your parent PLUS loan as soon as you borrow. Unlike subsidized student loans, where the federal government pays the interest while your loan is in deferment, any unpaid interest on your parent PLUS loan is added to your loan balance, or capitalized, when deferment ends. This capitalized interest can make your loan more expensive and harder to pay off.

For example, if you defer your loan repayment while your student is enrolled in a four-year program and for six months after graduation during the loan's grace period, four and a half years' worth of interest would be added to your loan balance when the deferment ends. Future interest would be calculated on the new balance. If possible, make at least interest payments on the loan while your student is still in school or in any deferment period to avoid capitalized interest.

Tip: Ask your school's financial aid office to calculate your monthly parent PLUS loan payment so you can decide if it's affordable.

Learn more: Student Loan Repayment: Everything You Need to Know

Alternatives to Parent PLUS Loans

What happens if you're denied a parent PLUS loan, or just want to explore other ways to pay for college? There are plenty of alternatives that could be more affordable, including:

• Applying for scholarships and grants: The benefit of these aid programs is they don't need to be repaid. Scholarship search engines like Scholarships.com, Fastweb and Scholly can help your child find scholarships and grants from private organizations.
• Getting a job: Working at a part-time job or paid internship or starting a side gig could help your student cover the cost of college.
• Choosing a different college: Your child could get a good education for less by starting out at a community college and transferring to a four-year school, choosing a more affordable school or opting for an in-state school.
• Getting federal student loans in the student's name: Federal student loans usually have lower interest rates than private student loans, as well as more options for postponing or even forgiving your loan payments.
• Getting private student loans: Either you or your student could apply for a student loan through a private lender. Depending on your credit profile, you may qualify for a private student loan with a lower interest rate than a parent PLUS loan offers.

Did you know? Many federal student loans historically had the advantage of offering loan forgiveness or income-driven repayment plans, which private student loans typically don't offer. However, the OBBBA eliminates loan forgiveness and income-driven repayment plans for parent PLUS loans borrowed on or after July 1, 2026, which could make private loans more appealing.

Learn more: Types of Student Loans: Federal vs. Private Loans Explained

Should You Apply for a Parent PLUS Loan?

Repaying a parent PLUS loan is a serious commitment that could make it harder to reach other financial goals, like saving for retirement. Refinancing into a private student loan in your child's name is one way to transfer the loan to your student, but depending on your child's finances and the lender's eligibility criteria, this isn't always an option.

Before you apply for a parent PLUS loan, you and your child should explore other options that may make more financial sense. If you're considering private student loans, which require a credit check, checking your FICO^® Score^Θ with Experian for free before you apply is a smart move. You'll learn what's affecting your score and things you can do to improve it, potentially helping you qualify for more favorable loan terms.