How To Apply For Parent Plus Loan?

June 6, 2023 by Marjorie R. Rogers, MA (English), Certified Consultant

To apply for a parent plus loan, visit the government’s student loan website and complete the application process there. Applying for financial aid can be a daunting task, especially for parents who are financing their child’s education.

The federal parent plus loan is a type of student loan available to parents who have dependent undergraduate students enrolled in college. This loan allows parents to borrow money to pay for education expenses that are not covered by other financial aid.

The application process is relatively straightforward and can be completed online at the government’s student loan website. In this article, we will guide you through the application process and provide you with tips on how to apply for a parent plus loan.

How To Apply For Parent Plus Loan?


What Is A Parent Plus Loan?

Definition Of Parent Plus Loan

A parent plus loan is a type of federal student loan that is available to parents of dependent undergraduate students. This loan helps parents cover the cost of their child’s education, including tuition, room and board, and other school-related expenses.

Here are some key points to keep in mind about parent plus loans:

  • The loan is taken out in the parent’s name, not the student’s.
  • The maximum loan amount is determined by the cost of attendance minus any other financial aid received.
  • Interest rates are fixed and typically higher than other federal student loan rates.
  • Parents are responsible for repaying the loan, not the student.

Who Is Eligible For A Parent Plus Loan?

To be eligible for a parent plus loan, you must be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student who is enrolled at least half-time at an eligible school. To qualify as a dependent, the student must be:

  • Under 24 years old
  • Unmarried
  • Not a veteran
  • Not an orphan or ward of the court

In addition to these requirements, you must also meet certain credit criteria to be approved for a parent plus loan. This includes not having adverse credit history, such as bankruptcy or foreclosure.

Advantages Of A Parent Plus Loan

There are several advantages of taking out a parent plus loan:

  • There are no annual or aggregate borrowing limits, so you can borrow up to the cost of attendance.
  • You can defer repayment while your child is enrolled at least half-time and for six months after they graduate or drop below half-time enrollment.
  • You may be eligible for income-driven repayment plans or loan forgiveness options.
  • Parent plus loans may have lower interest rates than private student loans.

Overall, parent plus loans can be a great way for parents to help their children pay for college. However, it’s important to carefully consider the financial impact of taking on this debt before borrowing.

How To Apply For A Parent Plus Loan

Pre-Application Checklist

Before applying for a parent plus loan, make sure you have completed the following steps:

  • Complete the free application for federal student aid (fafsa) for the academic year in which you need the loan.
  • Obtain a federal student aid (fsa) id and ensure that you have completed the master promissory note (mpn).
  • Calculate the amount you need to borrow to pay for your child’s education.

Step-By-Step Process For Applying

Once you have completed the pre-application checklist, follow these steps to apply for a parent plus loan:

  • Go to the official federal student aid website and log in using your fsa id.
  • Select the application for a parent plus loan and complete the necessary details.
  • Provide your employer’s information (if applicable) to help determine your creditworthiness.
  • Choose the amount you would like to borrow and submit your application.
  • Wait for the confirmation from the department of education about your loan application.

What To Expect After Applying

After applying for a parent plus loan, you can expect the following:

  • You will receive an email notification from the department of education that your application has been processed.
  • Your child’s school will also receive notification that you have applied for a parent plus loan.
  • If your application is approved, you will receive a disclosure statement that will outline the loan’s terms and conditions.
  • Your loan funds will be disbursed directly to your child’s educational institution, and any remaining funds will be refunded to you.

Applying for a parent plus loan involves completing a pre-application checklist, filling out the application, and waiting for notification from the department of education. Make sure you meet the eligibility criteria before applying and borrow only what you need to avoid excessive debt.

Managing And Repaying Your Parent Plus Loan

Parent plus loans are a great option for parents looking to support their children’s educational expenses. However, managing and repaying these loans can be challenging. In this section, we’ll explore some useful tips to help you manage and repay your parent plus loan successfully.

Understanding Loan Servicers

Loan servicers are responsible for managing the repayment process for your parent plus loan. They communicate with borrowers about their repayment options, answer questions, and process payments. Here are some key points to understand about loan servicers:

  • Your loan servicer will contact you after your loan is disbursed to provide details about your payment plan and payment due dates.
  • You can change your loan servicer at any time by requesting a transfer from the department of education.
  • If you have multiple loans, you may have multiple loan servicers. Be sure to keep track of which servicer is responsible for which loan.

Repayment Options Available

Repayment options for parent plus loans can provide flexibility, convenience and financial security. Do not hesitate to explore available options that meet your unique financial circumstances. Key points to consider regarding repayment options are:

  • Standard repayment plan: Requires fixed monthly payments over a period of up to 10 years. This is the default plan you’ll be placed on if you don’t choose another option.
  • Graduated repayment plan: Payments start out low and increase over time. It can make sense for those earning an income that will increase over time.
  • Income-driven repayment (idr) plan: Payments are based on your income and family size. This plan can make the most sense for those with lower incomes.
  • Loan consolidation: Combines multiple loans into one and can result in a lower monthly payment.

Strategies For Paying Off Your Loan

Paying off your parent plus loan may seem daunting, but having a solid plan can make it easier. Here are some tips to help you pay off your loan efficiently:

  • Make payments as soon as possible to avoid interest accruing.
  • Take advantage of automatic payments to ensure payments are always on time.
  • Consider making extra payments beyond the minimum to pay off your loan faster and reduce interest accrual.
  • Look for opportunities to reduce the principal balance of your loan, such as through loan forgiveness programs or employer-sponsored repayment programs.

By understanding loan servicers, exploring repayment options, and implementing repayment strategies, you can effectively manage and pay off your parent plus loan.

Frequently Asked Questions Of How To Apply For Parent Plus Loan?

What Is A Parent Plus Loan?

A parent plus loan is a federal loan for parents of dependent undergraduate students.

What Are The Eligibility Requirements?

To be eligible for a parent plus loan, you must be a parent of a dependent undergraduate student enrolled at least half-time in a participating school.

How Do I Apply For A Parent Plus Loan?

You can apply for a parent plus loan by completing and submitting the free application for federal student aid (fafsa) and a plus loan application.

How Much Can I Borrow With A Parent Plus Loan?

The amount you can borrow with a parent plus loan depends on the cost of attendance at the school your child is attending, minus any other financial aid they are receiving.

When Do I Have To Start Repaying My Parent Plus Loan?

Repayment of a parent plus loan typically starts within 60 days after the loan is fully disbursed, but you may be able to request a deferment or forbearance.


Applying for a parent plus loan can be a daunting task, but it is important to familiarize yourself with the process and requirements. Make sure to gather all necessary information and documents, such as your fsa id, social security number, and financial information.

Consider researching repayment options and calculating how much you can realistically afford to borrow. Remember to communicate with your child and have a plan in place for repayment. Seeking guidance from a financial advisor or the department of education can also be helpful.

Overall, taking the time to carefully prepare and understand the process can lead to successful and manageable loan repayment. Don’t hesitate to ask questions and seek assistance throughout the application process. A parent plus loan can be a valuable resource in helping your child achieve their educational goals.

About Author (Marjorie R. Rogers)

The inspiring mum of 6 who dedicates her time to supporting others. While battling with her own demons she continues to be the voice for others unable to speak out. Mental illness almost destroyed her, yet here she is fighting back and teaching you all the things she has learned along the way. Get Started To Read …