Are any federal financial aid programs for parents of college students?
Yes. Although most financial aid is awarded directly to students, one major federal financial aid loan program is available to parents to assist them in paying their child's college expenses. This loan is called the Direct PLUS Loan, or more commonly the Parent PLUS Loan.
Parent PLUS Loans are available to any creditworthy parent of a student attending college at least half-time in an undergraduate degree or certificate program offered by an accredited post-secondary educational institution, including vocational or trade schools.
Parents can currently borrow up to the full cost of their child's education (which may include tuition, fees, room and board, books, and supplies), minus any other financial aid received. For example, if the cost of education is $65,000 and the student receives aid totaling $25,000, a parent would be eligible to take out a $40,000 PLUS Loan.
However, starting July 1, 2026, Parent PLUS Loans will have borrowing limits: a $20,000 annual limit and a $65,000 total limit per dependent student. There is a three-year grace period on the new borrowing limits for parents who have borrowed under PLUS Loan program before June 30, 2026, which essentially allows parents of current undergraduate students to continue borrowing up to the full cost of their child's education if they need to.
The interest rate is fixed for the life of the loan and the rate on new loans is reset each June. The current interest rate on PLUS Loans issued for the 2025-2026 academic year (July 1, 2025 through June 30, 2026) is 8.94% (9.08% in 2024-2025). Disbursements are made directly to the school, usually in two equal installments. Interest begins accruing upon the first loan disbursement, and parents must begin to repay the loan within 60 days of the last disbursement for that academic year.
To apply for a PLUS Loan, parents must fill out a PLUS Loan application and a master promissory note. In most cases, parents will also need to file the federal government's financial aid application, the FAFSA, so the college's financial aid office can officially "certify" (approve) the loan. Check with your school's financial aid office on their policy. Parents will also be subject to a credit check.
Graduate and professional students can also borrow under the PLUS Loan program too (these loans are called Grad PLUS Loans), but only up until June 30, 2026. Starting July 1, 2026, the Grad PLUS Loan program is being eliminated.
