10 Federal Student Aid Programs and Eligibility Requirements

7. Direct PLUS Loans (Parent and Grad PLUS)

Direct PLUS Loans help parents of dependent undergraduates and graduate/professional students cover education costs not met by other aid. PLUS loans require a credit check; borrowers with adverse credit may still qualify by meeting additional requirements or obtaining an endorser. The school certifies the loan and the amount can cover up to the student’s cost of attendance minus other aid. Repayment generally begins soon after the loan disburses, though borrowers can request deferment while the student is enrolled. Parent borrowers should compare PLUS loans with private loans and alternative payment plans because PLUS interest rates and fees differ from other federal loans. Apply through StudentAid.gov after FAFSA completion and complete the required PLUS loan application and any credit counseling. If denied for credit reasons, parents can pursue an endorser, appeal the decision, or the student can borrow additional unsubsidized funds instead. Keep careful track of PLUS loan terms and consider consolidating or exploring forgiveness or repayment assistance if the borrower later pursues eligible public service work.