Federal Parent Loan for Undergraduate Students (PLUS)

Description

Parents can borrow funding for their dependent children. Loans are not based on income, but parents must undergo a credit check to determine eligibility. A parent or step-parent of a dependent child can apply for a PLUS loan online. If approved, the parent must also complete a Master Promissory Note (MPN) on the same website.

Annual Amount

If approved, a parent may borrow up to $20,000 per year ($10,000 per semester). If a parent is denied, the dependent student can then be eligible to receive additional unsubsidized loan through the FAFSA. The additional annual amount is $4,000 ($2,000 per semester) for freshmen / sophomores and $5,000 ($2,500 per semester) for juniors / seniors. The maximum amount in parent PLUS loans that can be received on behalf of an individual dependent student is $65,000.

Repayment

Several options are available for repayment; contact your lender for information.