Responsible Party |
Parent |
Student |
Co-Signer |
Co-signer is not required. Optional if denied due to bad credit. |
Varies depending on lender. |
Interest Rate |
Fixed. Visit studentaid.gov for current rates. |
Variable, ranges from 3% – 13% |
Interest Tax Deductible |
Yes, parents may be able to use interest paid on loan for tax deduction, subject to IRS guidelines. |
Yes, student may be able to use interest paid on loan for tax deduction, subject to IRS guidelines. |
Fees |
Yes. Visit studentaid.gov for current loan fees. |
Varies depending on lender. May have lower fees, but higher interest rates. |
Minimum Requirement |
$200 per year, $100 per semester |
Varies depending on lender. Range: $500-$1,500 minimum. |
Loan Limits |
Can borrow up to student's cost of attendance. |
Can borrow up to student's cost of attendance. May have limit depending on lender and credit history. |
Credit Check |
Credit check required. No debt-to-income ratio requirement. |
Credit check required. Minimum income and debt-to-income ratio requirement. |
Repayment |
Repayment begins as soon as the loan is fully disbursed, with the first payment due within 60 days after the final disbursement.
Depending on the repayment plan you choose, you’ll generally have 10 to 25 years to repay the loan.
Visit studentaid.gov for loan repayment plans. The student and parent can arrange a payment plan together. For example, even if the loan is in the parent’s name, the student can take responsibility for making the payments.
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Varies depending on lender.
Repayment period: 4–25 years.
The student and parent can agree on a payment plan. For example, even though the loan is in the student’s name, the parent can help by making the payments.
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Deferment |
Can request to defer until student is no longer attending at least half time. |
Varies depending on lender. |
Application Process |
Online at studentaid.gov. |
Online with lender.
If the student is a dependent, one parent must sign the private loan paperwork to confirm they are aware of the Parent PLUS loan option but have decided to choose the private loan instead. |
Consolidation |
Can be included with parent's other federal loans (not student's). |
Can NOT be included with federal student loans. |
Denial |
If parent applies and is denied, the student is eligible for additional unsubsidized loans. |
If denied, would have to try another private lender. |
Tracking Your Balance |
Parents can check PLUS loan balances at studentaid.gov, just like other federal loans. |
Must log on to each lender's site and track yourself. No central site to check all private loans. |
Release |
No, the parent is responsible for repaying the loan. |
Release policies vary by lender. May apply to release a cosigner. |
Forgivable |
Yes, payments may be waived if the primary borrower or student beneficiary passes away or if the primary borrower becomes disabled (certain conditions apply). |
Varies by lender. Some lenders may waive the remaining balance in the event of the primary borrower's death or permanent, total disability. |