Parent PLUS Loan

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Everything you need to know about the The Parent Plus Loan is right here. We make the application process, quick and easy to understand. We also provide you with the best Parent PLUS Loan sources and resources. The top picks...

What is a Parent PLUS Loan?

A Parent PLUS loan is a low-interest loan provided to parents through the Federal Family Education Loan Program. This loan enables parents to pay the educational expenses for dependent children enrolled in a college or career school at least half the time.

Who Is Eligible To Apply For a Parent PLUS Loan?

For a parent to qualify to apply, they are required to:

* Be the student’s natural parent, adoptive parent, or in some cases, stepparent

* Be a U.S. citizen or eligible non-citizen

* Have no education loans in default or owe educational grant refunds

* Be creditworthy

For a parent/parents to receive a Parent PLUS loan, the prospective student must:

* Complete the Free Application for Federal Student Aid (FAFSA)

* Be a dependent student. Parents of independent students are not eligible.

* Be enrolled in a school that participates in the Federal Family Education Loan Program

* Be enrolled at least half-time while working toward a degree or certificate

* Have no education loans in default or owe educational grant refunds

* If you are a male 18-25 years of age, you must register with the Selective Service.

Who is Responsible For Paying The Parent PLUS Loan back?

The parent(s).

How Are The Parent PLUS Loan Funds Dispersed?

Parent PLUS loan funds are sent directly to your child’s school. The loan money must first be applied to pay for tuition and fees, room and board, and other school charges. If any residual loan money is left, you will receive the funds, unless you authorize the school to release the funds to your child or hold them in a school account.

What Steps Must I Take Prior To Applying For a Parent PLUS Loan?

There are a number of things that must happen before you apply for a Parent PLUS loan. You must:

(1)   Complete the Free Application for Federal Student Aid (FAFSA). This is required for your child to be considered for federal and most other types of student aid awarded by state agencies and colleges. Hot Tip: If you do not submit a FAFSA, you WILL NOT be eligible to receive student aid.

(2)   Receive a Student Aid Report (SAR). This report tells you what federal funding your child is eligible for.

(3)   Receive student aid award letters from schools that have accepted your child.

(4)   Review and compare your child’s student aid awards.

(5)   Determine whether the student aid award meets your child’s education costs for their school. If it does not or you need funding to meet your Expected Family Contribution (indicated in the SAR), then it is time to apply.

Is There a Credit Check Involved With The Parent PLUS Loan?
The answer is, "Yes!" You will undergo a credit check to verify your credit history. A parent with credit issues can still qualify for a Parent PLUS loan by securing an co-signer, who in turn must pass all the credit requirements.