Even if you've contributed to a college fund over the years, you may not have enough set aside for college tuition by the time high school graduation comes around, especially, given the rising cost of attendance. If your savings come up short, you'll need to rely on financial aid. One option is to apply for a federal Parent PLUS (Parent Loan for Undergraduate Students) loan to help fill the gap.
What is a Parent PLUS loan?
Federal Parent PLUS loans are for parents of eligible undergraduate students in the United States. They allow parents to borrow money from the U.S. Department of Education to help pay for their child's education. Currently, the maximum you can receive is the cost of attendance minus any financial aid your child has already been offered. Effective July 1, 2026, parents may borrow $20,00 annually per dependent student with an aggregate limit of $65,000.
Before you apply
Before you apply for a Parent PLUS loan, you should completely understand what taking one out means.
- They have fees. Parent PLUS loans have a loan fee of 4.228%, which is deducted from each loan disbursement.
- Check the interest rate. Parent PLUS loan rates are set every May based on US Treasury notes.
- Consider your financial situation and options. Compare Parent PLUS loans with private loan options, and consider talking to your financial advisor about the best course of action to help your student pay for college.
Are you eligible for a federal Parent PLUS loan?
Parents need to meet several requirements to qualify for a federal Parent PLUS loan:
- You must be the biological or legal adoptive parent of a dependent undergraduate student who is enrolled in an eligible college at least half time. In some cases, stepparents are approved.
- You have to pass a credit check. If you have an "adverse credit history," you can apply with an endorser (similar to a cosigner) or prove that there are extenuating circumstances for your poor credit.
- You and your student must meet general eligibility requirements to receive federal student aid, including being a U.S. citizen or eligible non-citizen.
- Your student must enroll in a qualifying institution.
How to apply for a federal Parent PLUS loan
If you meet the requirements, applying for a federal Parent PLUS loan is a straightforward process. It's free and can be done online through the Department of Education website, StudentAid.gov. Here's a quick review of the steps.
- Submit the Free Application for Federal Student Aid (FAFSA®) with your child. It needs to be filled out each year in order to receive federal aid, including federal student loans.
- Log into StudentAid.gov using your FSA ID and password (not your child's FSA ID) to fill out the Parent PLUS loan application, which takes about 15 minutes.
- If approved, complete the Master Promissory Note (MPN) to receive the funds. It explains the terms and conditions of the loan.
What should I do if I've had financial trouble in the past?
If you've had financial trouble, or are currently having trouble, head to a Citizens Bank branch. Our bankers may be able to provide solutions you hadn't considered before or explain why certain options are better than others. Either way, it's a great opportunity to gain professional insight into financial options that may not be available to you otherwise.
Made ready for college
Learn more about paying for college. Head over to the Student Hub for more information on scholarships, grants, work study and student loans.
Ready to take the next step? Visit our Student Lending Page for additional information about how to pay for college. You can also call 1-888-411-0266 or stop by your nearest Citizens branch.