Federal PLUS (Parent) Loan

A Federal PLUS (Parent) Loan is a credit-based loan from the federal government for a parent of a dependent, undergraduate student. Application can be found at studentaid.gov. If the application is denied due to adverse credit, the student may be eligible for an additional Fed Direct Unsubsidized loan. The current interest rate is 8.94%, and the PLUS loan is subject to a 4.228% fee. The interest rate is set every July 1st. If approved, the parent borrower must complete the Parent PLUS MPN found at studentaid.gov.

The maximum amount that can be borrowed in the academic year is $20,000 for new borrowers in 2026. It is recommended to limit PLUS loan borrowing to $16,250 if the PLUS loan will be used for four years because new parent borrowers are subject to an aggregate limit of $65,000 for PLUS loan borrowing per student.

For parents who have borrowed PLUS in the past, the maximum amount that can be borrowed is the student’s cost of attendance less other aid received.

Private Educational Loans

Private educational loans are offered by commercial lenders to assist a student in filling the financial gap between cost and aid awarded. There are loans for student or parent (sponsor) borrowers. Student borrowers will most likely need (or benefit from) a credit-worthy co-signer. These loans are based upon credit worthiness, not financial need. Borrowers may use any lender of their choice, and CIA has a FASTChoice link on our website to compare private loan options.