Federal Parent PLUS Loan Program: Eligibility, Limits, And Repayment
Federal Parent PLUS loans are available to parents to supplement their dependent children’s financial aid package. The Parent PLUS Loan interest rate effective for loan funds disbursed after July 1, 2006, is 8.5 percent.
Each year, parents can borrow up to the student’s cost of education, minus any other financial aid received. Repayment of Federal Parent PLUS loans begins within 60 days of full disbursement. Parent PLUS borrowers can choose to defer repayment while the student remains enrolled in school at least half-time.
Parent PLUS Loan Application Process: Supplementary Step
In conjunction with the PLUS Loan application process, either before or after applying, schools require you to complete the FAFSA to ensure that all other federal aid has been exhausted before taking out a higher interest PLUS loan. This federal financial aid form can be downloaded and submitted here.