What is the Parent PLUS Loan?
The Parent PLUS Loan is offered by the Department of Education to parents borrowing for a student’s undergraduate education.
The qualification threshold for the Parent PLUS Loan is lower than for private loans. Private loans offers are based on a borrower’s credit score or debt-to-income ratio. Parent PLUS Loans only require that the borrower not have an adverse credit history, such as a bankruptcy in the last 7 years or a 90-day default on current debt.
For more information about the Parent PLUS Loan, including current interest rates, check out the Department of Education’s resources.
What’s changing?
Borrowing limits have new caps, repayment plan is limited to the Standard Repayment option and Parent PLUS Loan will no longer qualify for federal loan forgiveness programs.
| Award Year 2026-27 and beyond | |
| Borrowing Limits | Parent PLUS Loans are capped at $20,000 per year, $65,000 total for a student’s undergraduate education. |
| Repayment Plans | Parent PLUS Loans must remain on the Standard Repayment option. Parent PLUS loans are no longer eligible for Income-based Repayment plans. |
| Loan Forgiveness | Parent PLUS Loans are no longer eligible for any federal loan forgiveness, including Public Service Loan Forgiveness (PSFL). |
When do changes take place?
On July 1, 2026, these changes will impact Parent PLUS loans for Award Year 2026-27 and beyond. Parents borrowing for the first time after this date will be subject to these new terms. Parent PLUS Loans disbursed before July 1, 2026 remain subject to the current terms.