Parents of dependent undergraduate students may apply for the Federal Direct Parent PLUS Loan to help pay their child’s education expenses. The Interest Rate for Federal Direct Parent PLUS Loans made on or after July 1, 2025 and before July 1, 2026 is 8.94%. Depending on creditworthiness, parents can borrow the difference between the Cost of Attendance (COA) and the total financial aid award listed on the Financial Aid Award Letter. Effective July 1, 2026, the Department of Education has instituted a yearly cap for all new Parent PLUS loan borrowers for the student and program they are intending to borrow for- the new yearly cap is $20,000 and the new aggregate borrowing limit for parents for each student is $65,000. Please note that if you borrow the yearly max for the first 3 years of study, you will only have $5,000 available to borrow in a Parent PLUS Loan for the 4th year of study.
Eligibility Requirements
The Parent must:
- Be the student’s biological or adoptive parent or the spouse of the student's biological or legal adoptive parent (the student's stepparent) and you are considered to be a parent in accordance with the instructions on the Free Application for Federal Student Aid (FAFSA®) form for purposes of reporting income and assets on the FAFSA;
- Be a U.S. citizen or eligible non-citizen;
- Not be in default on a federal loan or owe an overpayment on a federal education grant.
The Student must:
- Meet general eligibility requirements
- Enroll at least half-time each semester
- File the current year’s FAFSA (Free Application for Federal Student Aid)
Parents may complete the Parent PLUS Loan Application online at www.StudentAid.gov. If the parent is denied for the Parent PLUS Loan, the student will receive an additional $4,000 in Direct Unsubsidized Loan funds.