Should I get a Parent PLUS loan?

A parent PLUS loan can help cover any remaining financial gaps not covered by your child’s financial aid package. The government offers parent PLUS loans with fixed interest rates, flexible repayment options and opportunities for student loan forgiveness. However, it’s important to weigh the pros and cons of a parent PLUS loan before applying.

Do Parent PLUS loans affect your credit?

As with other types of loans, parent PLUS loans can impact your credit positively or negatively depending on how you manage your loan payments. But unlike federal student loans for undergraduate students, parent PLUS loans—which are lent to parents of undergraduate students—also require a credit check before the loan is issued.

How does a Parent PLUS loan work?

Unless the applying parent has an adverse credit history and requires an endorser (similar to a cosigner), the parent PLUS loan will be issued to one parent and only reported to the credit bureaus under that parent's name. Both parents can take out separate parent PLUS loans, but the total loan amount can't exceed the borrowing limit for the year.