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A Federal Parent PLUS Loan is an education loan designed for parents of dependent, undergraduate college students enrolled at least half time. Parent PLUS loans are available without regard to income or assets and can help you fund your child's education. With a Parent PLUS Loan, you can borrow up to the full cost of your child’s education, less other aid received.
Parent PLUS Loan Advantages
PLUS loans can be used to supplement other financial aid and are a cost-effective alternative to using savings, income, retirement accounts, or home equity loans for college costs.
- With a PLUS loan, you can borrow up to the full cost of your child's education less other financial aid received.
- PLUS loans require no collateral.
- PLUS loans may be used to pay for authorized education expenses such as tuition, room and board, supplies, and equipment — often including personal computers — as well as transportation and commuting costs.
- PLUS loans have flexible repayment options
- Interest paid on PLUS loans may be tax deductible. Check IRS Publication 970, chapter 4, "Student Loan Interest Deduction" for more information.
Eligibility
- You must be a parent of an undergraduate, dependent child who is enrolled at least half-time. Parents of independent or graduate students are not eligible.
- You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
- A credit check is required.
Interest Rate Notes for PLUS Loans
PLUS loans first disbursed on or after 7/1/06 will have a fixed interest rate of 8.50% for the life of the loan.
Learn more about money-savings borrower benefits available to Southwest federal PLUS loan borrowers.
Learn about the Graduate PLUS loan.
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