Parent Plus student loans – also called Direct Plus Loans – are a type of financial aid offered by the federal government.
Parent plus loans are similar to most student loans. However, they are not available to every student.
Since a Parent Plus loan is designed to cover college expenses that the student can’t address through their financial aid package, only students with packages that won’t meet their financial needs qualify for a Parent Plus loan.
For loans disbursed between July 1, 2022, through June 30, 2023, the Parent Plus loan interest rate is fixed at 7.54 percent. Rates for the 2023-2024 academic year aren’t expected until May 2023.
The Parent Plus loan maximum amount is based on the student’s cost of attendance. The loan can cover the entire cost of attendance but can’t be issued for an amount above the total of the eligible expenses.
First, it’s critical to understand that parents can’t request a Parent Plus loan until their student completes their FAFSA. Beyond the FAFSA requirement, most schools require an online application, though some may use a different process.
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