A Parent PLUS Loan is a loan for parents to finance the education of a dependent undergraduate child. The loan is not need-based and can be used to cover the full cost of education including tuition, housing, books and more.
Parents can borrow up to the entire cost of college attendance less any other financial aid received. A Parent PLUS Loan does not require collateral. Instead, eligibility is determined by a credit check to ensure the borrower is on time with other debts and does not have any default determinations in the previous five years. To apply for a Parent Plus Loan, parents start by contacting the financial aid office at their child’s college.