Federal Parent PLUS Loans
The Federal Direct Parent Loan for Undergraduate Student (PLUS) is a loan for the natural parent or adoptive parent to help cover his/her dependent undergraduate student’s educational expenses. A stepparent may be eligible to borrow if income and assets were reported on the Free Application for Federal Student Aid (FAFSA).
Parents must pass a credit check to be eligible for a PLUS loan, i.e. not have an adverse credit history.
Adverse credit history is defined as:
- A current 180-day delinquency;
- Debt discharged in bankruptcy during the past five years; or
- Evidence of a default, foreclosure, tax lien, repossession, wage garnishment, or write-off of a Title IV debt during the past five years.
Although repayment on a Parent PLUS loan begins 60 days after the final disbursement of the current loan, repayment can be deferred until six months after the student graduates or is no longer enrolled. The repayment period varies depending upon your choice of repayment plans.