Federal Parent PLUS Loans
The Federal Parent PLUS Loan Program is a non-need, credit-based, federal loan available to the parents of dependent undergraduate students to cover educational costs.
Application
A Free Application for Federal Student Aid (FAFSA) is required of all students for whom a PLUS loan is being borrowed. In cases of a non-custodial parent requesting PLUS funds, the FAFSA must be completed by the student and the custodial parent.
To receive a PLUS loan, you must first apply online by completing a Parent PLUS Loan application. The application authorizes the U.S. Department of Education to check your credit history. After your application and credit check have been approved, you will need to complete a Parent PLUS Loan Master Promissory Note (MPN). The same borrower from the application must sign the MPN. An application is required for each year a Parent PLUS Loan is needed.
26-27 PLUS requests cover enrollment periods Fall 2026, Spring 2027, & Summer 2027.
Interest Rates
PLUS Loans first disbursed on or after July 1, 2025 and before July 1, 2026 will have a fixed interest rate of 8.94% The interest rate for PLUS loans disbursed after July 1, 2026 have not yet been announced by the Federal Department of Education
Loan Fees
PLUS loans first disbursed on or after Oct. 1, 2020 will have an origination fee of 4.228%. This fee covers administrative costs of the loan.
Enrollment Intensity
Beginning July 1, 2026, the One Big Beautiful Bill Act (OBBBA) introduces new federal rules requiring PLUS Loan eligibility to be prorated based on a student’s enrollment intensity. Beginning with the 2026–2027 academic year, students enrolled less than full time (11 credits or less per semester for undergraduate studies) will have their loans reduced proportionally based on their enrollment percentage (i.e., the number of credits they register for in a given term). Families who qualify for the legacy (grandfathered) provision (see section on Borrowing Limits and the FAQ for New Borrowing Limits for more details) remain under the previous Parent PLUS rules, which did not prorate loan eligibility based on enrollment intensity.
Borrowing Limits
Borrowing Limits
Beginning July 1, 2026 and forward, the One Big Beautiful Bill (OBBB) replaces the prior borrowing limit that allowed parents to borrow “up to the cost of attendance” in a Parent PLUS loan with firm borrowing caps.
New annual and lifetime caps
For students whose Parent PLUS borrowing begins on or after July 1, 2026, the borrowing caps are:
- Annual maximum: $20,000 per student, per year.
- Lifetime maximum: $65,000 total per student.
- Enrollment intensity matters: If the student is enrolled less than full time, Parent PLUS eligibility will be reduced proportionally under new federal rules.
Legacy(“grandfathered”)provision
If a Parent PLUS Loan disbursed before July 1, 2026 for a student’s current academic program, that student may be grandfathered under the previous Parent PLUS borrowing limits: That is, parents of this student will be able to continue borrowing up to the cost of attendance for that program of study for up to three additional academic years or until the student completes that program, whichever comes first. To retain legacy status, the student should continue in the same program of study for which a Parent PLUS loan was borrowed.
FAQs for New Borrowing Limits
- Why are Parent PLUS limits changing? Congress passed the One Big Beautiful Bill Act (OBBBA) that changed the borrowing limits for PLUS loans, along with other loan-related changes (such as loan intensity and the narrowing of repayment options) in an effort to make loan limits consistent across federal programs and to simplify repayment. With OBBBA, Congress also seeks to provide financial guardrails to protect families from rising debt levels.
- What are the new Parent PLUS caps and when do they start? For loans first disbursed on/after July 1, 2026: $20,000 per year, per student; and $65,000 aggregate per dependent student.
- Who do these caps apply to? These caps are for students starting college in Fall 2026 or returning college students for whom a parent PLUS loan has not been borrowed prior to July 1, 2026. Caps are per student (not per parent) and apply regardless of how many parents borrow.
- What is the “legacy” (grandfathered) provision for Parent PLUS? The legacy provision allows students whose parents have taken a Parent PLUS loan on their behalf to continue borrowing under previous policy (up to the cost of attendance minus any financial aid received). So, the new borrowing caps do not apply for a student who:
- Had a parent PLUS loan disbursed any time prior to July 1, 2026
- Is continuously enrolled in the same academic program and institution.
- If a parent has borrowed a Federal Parent PLUS loan for an older sibling previously, does legacy status carry over to a younger sibling for whom parents have never borrowed? No. Legacy status is student/program‑specific. A parent’s prior PLUS borrowing for an older child does not grandfather borrowing for a new student beginning in 2026–2027; the younger sibling is under the new caps.
- Can a student lose legacy status? Yes, potentially. The Department of Education has announced legacy status is upheld for students who remain continuously enrolled in the same program of study at the institution where a PLUS loan was disbursed on their behalf. Based on current federal guidance, withdrawing, transferring to another institution, or changing a degree may forfeit legacy eligibility and place the student under the new capped limits.
- How does enrollment intensity affect Parent PLUS after 7/1/2026? Beginning in 2026–2027, federal loan eligibility (including Parent PLUS) will be prorated when a student is enrolled less than full time.
Parent Eligibility Requirements for a Direct PLUS Loan
The borrower must be the student's biological or adoptive parent or the student's stepparent if the biological or adoptive parent has remarried at the time of application. Your child must be a dependent student who is enrolled at least half-time in a degree-seeking program. For financial aid purposes, a student is considered "dependent" if he or she is under the age of 24, unmarried, and has no legal dependents at the time the FAFSA is submitted. Dependency exceptions are made for veterans, wards of the court, and other special circumstances. Note: A parent is not defined as a legal guardian or another relative.
General Eligibility & Citizenship Status Requirements for a Direct PLUS Loan
All PLUS applicants, including the dependent student in the case of a Parent PLUS Loan, must be a U.S. citizen or eligible noncitizen, must not be in default on any federal education loans or owe a repayment on a federal education grant, and must meet other general eligibility requirements for Federal Student Aid programs. You can find more information about these requirements including a list of eligible noncitizen statuses Federal Student Aid.
Master Promissory Note Completion Requirement
Once the PLUS request is approved an electronic Master Promissory Note (MPN) must be completed. You will be presented with this option following the online PLUS request/credit check. PLUS applicants approved without an endorser are eligible to apply for future PLUS loans for the same student under the same MPN. Applicants approved with a credit-worthy endorser will be required to complete a new MPN for any subsequent PLUS loan requests.
Credit Criteria for a Direct PLUS Loan
The PLUS loan is a credit-based loan and by applying for the PLUS loan you are authorizing the Department of Education to check your credit history. PLUS loan borrowers cannot have an adverse credit history. Therefore, an applicant cannot be 90 days or more delinquent on the repayment of any debt, OR the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years.
If the PLUS request is denied, you, as the parent or graduate/professional student have several options:
- Credit Override/Appeal Option: You may request a review of the credit check due to inaccurate information on your credit report or if the denial is attributed to short-term delinquencies in mortgage payments or medical bills. Contact the Direct Loan Applicant Services at 1-800-557-7394 for further instruction.
- Endorser Option: You may secure a credit-worthy endorser for your PLUS loan. An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower becomes delinquent in making payments or defaults on the loan. Through the studentaid.gov site under "Apply for Aid" and "Endorse a PLUS loan", an endorser will be able to electronically endorse the PLUS loan if the borrower failed the credit check and endorse a specific loan amount which may differ from the loan amount on the PLUS request.
- No Action Option: You do not wish to pursue the PLUS loan and would like to take no further action at this time.
Provision for Additional Federal Direct Unsubsidized Loan
In cases of a PLUS denial the dependent student of an ineligible parent applicant is alternatively eligible to receive additional Federal Direct Unsubsidized loan funding of up to $4,000 (1st & 2nd year students with less than 60 credit hours completed) or up to $5,000 (3rd & 4th year students with 60+ credit hours completed).
The repayment period for all PLUS loans begins on the date the loan is fully disbursed, and the first payment is due within 60 days of the final disbursement. However, a graduate student PLUS loan borrower (as well as a parent PLUS borrower who is also a student) can defer repayment while the borrower is enrolled at least half-time, and, for PLUS loans first disbursed on or after July 1, 2008, for an additional six months after the borrower is no longer enrolled at least half-time. Parent PLUS loan borrowers whose loans were first disbursed on or after July 1, 2008, may choose to have repayment deferred while the student for whom the parent borrowed is enrolled at least half-time and for an additional six months after that student is no longer enrolled at least half-time.
The interest that accrues during these deferment periods will be capitalized if not paid by the borrower.
You will have a choice of repayment plans. How much you pay and how long you take to repay your loan(s) will vary depending on the repayment plan you choose. For questions regarding your individual options or assistance selecting the repayment plan that is best for you, please contact the Direct Loan Servicing Center at 1-800-848-0979.