Parent Loan for Undergraduate Students (PLUS): A Complete Guide
The Federal Direct Parent Loan for Undergraduate Students, also referred to as PLUS, allows parents to borrow for their minor undergrad students. These loans are based not on need but on credit. However, the maximum amount of lending does not exceed the difference between the cost of attendance calculated by the school and the assistance earned, including scholarships and other financial aid. This federal student loan option is available to parents whose children are enrolled in an eligible program for at least half-time. Although this form of loan is a beneficial financial instrument for many parents, it is not necessarily the best choice for everyone.