How To Apply for a Parent PLUS Loan

College can be expensive, and many parents want to pitch in. One way to do that is with a parent PLUS loan. As of the third quarter in 2025, there were 3.5 million parent PLUS loan borrowers with a total of $113.1 billion in outstanding debt, according to Federal Student Loan Portfolio data. Here’s what you need to know and how to apply for a parent PLUS loan.

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What is a parent PLUS loan?

A parent PLUS loan is a type of financing available to eligible parents to help pay for their child’s education. These loans are issued by the U.S. Department of Education and require a credit check. There isn’t a minimum credit score to qualify, but borrowers with a record of poor financial behavior might not qualify.

“Parent PLUS loans involve a modest credit check, where the borrower must not have an adverse credit history,” explains Mark Kantrowitz, a college financing expert and author of books on student aid.

“An adverse credit history involves a two-year lookback for a serious delinquency and a five-year lookback for derogatory events like bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or default determination,” Kantrowitz says. “Parent PLUS loans do not depend on credit scores, debt-to-income ratios, income levels, or duration of employment with the current employer.” 

While the funds are used to pay for the student’s college-related expenses, the parent, not the student, is responsible for repayment. 

“I have had many families tell me that they will take the parent PLUS loan and then have their kid make the payments,” says Jack Wang, a college financial aid adviser at Innovative Advisory Group and host of the Smart College Buyer podcast. “While that may sound great, it is not legally practical.”

Who is eligible for a parent PLUS loan?

You must meet the parent PLUS loan requirements to be eligible. Here’s how to qualify for a parent PLUS loan:

• Student status: Your child must be an eligible dependent undergraduate student. 
• Enrollment: The student must be enrolled at least half-time at an eligible school.
• Parent relationship: The parent borrower must be the biological or adoptive parent of the eligible student. In certain cases, a stepparent may qualify. 
• Credit history: Many federal student loans don’t require a credit check. But PLUS loans do. Parent PLUS loan borrowers must not have an adverse credit history, which includes certain events such as bankruptcy, default, or foreclosure within the past 5 years. 
• Meet federal student aid eligibility: The parent must be a U.S. citizen or eligible noncitizen, and the student must attend a school and pursue a program that qualifies for federal financial aid. 

The interest rate for parent PLUS loans, set by Congress, is the same for all qualified borrowers. The rate for parent PLUS loans taken out in the 2025-26 school year is 8.94%, compared with 6.39% for federal Direct Loans taken out by undergraduate students themselves.

How to apply for a parent PLUS loan

Here’s a step-by-step guide on how to apply for a parent PLUS loan. 

1. Submit the FAFSA

The first step to apply for a parent PLUS loan is ensuring that a Free Application for Federal Student Aid is submitted for the student. The student completes the FAFSA, and if they’re considered a dependent student, must include parent information. This includes the parent’s date of birth, Social Security number, and financial information (such as income and assets).

2. Fill out the parent PLUS loan application 

The parent completes the Direct PLUS Loan Application for Parents. This application helps you apply for parent PLUS loans, request or change the loan amount, authorize how the school can use the loan funds, choose a person to receive any credit balances, and request deferment or repayment while the child is in school and for the six-month period after leaving school. Many schools allow you to apply online. However, there could be different application processes depending on the school. 

You’ll need an FSA ID, school, loan amount, and personal information. The application process should take about 20 minutes. You’ll undergo a credit check and must not have an adverse credit history, including a recent bankruptcy or default. 

If you don’t pass the credit check, you can add an endorser, which is similar to a cosigner. The endorser passes the credit check and is legally liable for the loan. You may also document certain extenuating circumstances that led to your adverse credit history. In either case, you must complete credit counseling. 

3. Complete the Direct PLUS Loan Master Promissory Note (MPN)

Once you apply for a parent PLUS loan and are approved, you must complete the Direct PLUS Loan Master Promissory Note (MPN). Your promissory note is the legal document you sign agreeing to the terms and conditions of the loan. 

After that, the funds are sent to the school to pay for the student’s expenses. Any remaining balance will be sent to you. However, you may also request that your child receive the funds. Remember, only you are responsible for repayment, though. 

What information is needed to apply for a parent PLUS loan?

To complete a parent PLUS loan application, you’ll need:

• An FSA ID (as a parent)
• The school 
• Loan amount
• Your personal information
• Your child’s/student’s information
• Information about your employer 

How long does it take to get approved?

Once you submit your parent PLUS loan application, your school will receive a notification within 24 hours. From there, it could take several days or weeks for approval. 

The credit check is usually processed right away. However, in some cases, it could take between three to five business days. It may take an additional five to 10 days to process your parent PLUS loan application. So, in total, it may take two to three weeks. However, it depends on various factors like your school, the time of year, and documentation. 

What to know before taking out a parent PLUS loan

If you want to pay for your child’s college, a parent PLUS loan can help. Some private lenders also offer parent loans. Here, we cover the pros and cons of parent PLUS loans vs. private parent loans. 

Additionally, there are some key things to consider before taking out a parent PLUS loan. 

How much should you borrow with a parent PLUS loan?

As a parent, you also have to consider your own financial needs. You’re much closer to retirement than your child is, which is a major factor to consider. 

“When parents take out these loans, they are often just 10 to 15 years away from their target retirement age,” says L.J. Jones, a certified financial planner (CFP) and founder of Developing Financial LLC.

That’s why it’s essential to limit your borrowing so that repayment is manageable and doesn’t delay your retirement. 

“Parents should not borrow more for all their children than their annual income,” says Kantrowitz. “That ensures that they should be able to repay the debt in 10 years or less. If they expect to retire in less than 10 years, they should borrow proportionately less. For example, if they will be retiring in five years, they should borrow half as much.”

New loan limits and restrictions 

Currently, parent PLUS loan borrowers can take out up to the cost of attendance. But federal rules enacted in July 2025 set forth new limits on parent PLUS loans. Starting July 1, 2026, the new limits are $20,000 per year, with an aggregate limit of $65,000. 

“I know many families that need to borrow, and will likely have to use private loans in addition to the PLUS loan,” says Wang. That’s not the only major change that will go into effect then. 

“Parent PLUS loans will no longer be eligible for any type of income-driven repayment plan, and as a consequence, not eligible for PSLF,” adds Wang. So, one of the main federal loan benefits is off the table for parent borrowers. 

Before applying for a parent PLUS loan, weigh the pros and cons. Evaluate all of your loan options and compare rates and fees. Most importantly, understand how repayment will affect your own financial goals. 

“For parents who can comfortably afford the payments without sacrificing their own goals, a parent PLUS loan can be a tool to bridge the gap,” says Jones. “However, if you are a parent who isn't sure if you can take on that debt, it is worth having a difficult but necessary conversation with your child about more affordable options. Choosing a lower-cost school or a different financial path may be the decision that best protects your family's long-term financial health.”