Federal PLUS Loans

The Parent Loan for Undergraduate Students, or PLUS, is a low-interest federally backed loan that parents can take out on behalf of their undergraduate children to pay for educational costs.

There are some requirements for parents and their children to be eligible to borrow a PLUS loan.

PARENT:

1. Must be a parent (or step-parent or adopted parent) of a dependent student
2. Be a U.S. citizen or eligible non-citizen and provide a valid Social Security number
3. Pass a credit check
4. Cannot be in default on another federal student loan or owe a refund on any federal student aid program

STUDENT:

1. Must be enrolled at least half-time
2. Must be less than 24 years of age
3. Must have NO dependents
4. Cannot be in default on another federal student loan or owe a refund on any federal student aid program

No, the PLUS loan does not require completion of the FAFSA.

However, filing the FAFSA may allow for other aid sources (such as Stafford or Direct student loans) to be included in the financial aid package.

The maximum amount you or your parents can borrow is the cost of attendance minus any other financial aid that is received.

The cost of attendance (COA) is a number (generally a yearly figure) that is designed to help summarize the various costs of attending a school that takes into account

1. tuition and fees
2. on-campus room and board (or an allowance for these amounts for off-campus students)
3. allowances for books, supplies, transportation, loan fees, and if applicable, dependent care,

It also generally includes various miscellaneous and personal expenses including an allowance for a purchase or rental of a personal computer and can also include additional costs related to a disability.

Most schools publish the COA annually in brochures and online college search sites, so it may help to check with some of these resources. Additionally, if you have unusual circumstances which have higher costs, it might help to discuss these with the financial aid office.