How much is the Parent PLUS loan?
The Parent PLUS loan is a federal loan program that enables parents to borrow money to cover their child’s education expenses. This loan option can be a great resource for families who need additional funds to supplement other financial aid packages. The amount that parents can borrow through the Parent PLUS loan varies depending on several factors.
The maximum loan amount that parents can borrow in a Parent PLUS loan is determined by the cost of attendance (COA) at the child’s school, minus any other financial aid received. COA includes tuition, fees, room and board, books, supplies, transportation, and personal expenses. It’s essential to note that the COA may vary from one institution to another, so the maximum amount you can borrow through the Parent PLUS loan may differ for each school.
To give you an idea of the potential loan amount, let’s say the COA for your child’s school is $30,000 per year, and your child receives $10,000 in other financial aid, scholarships, or grants. In this case, the maximum amount you could borrow through the Parent PLUS loan would be $20,000 ($30,000 – $10,000).
It’s worth mentioning that even though you can borrow up to the maximum allowable amount, it may not be prudent to do so. Ensure you carefully consider your financial situation and only borrow what you genuinely need, as repaying the loan, with interest, in the future is your responsibility.
1. Can I borrow more than the school’s cost of attendance through a Parent PLUS loan?
No, you can only borrow up to the school’s cost of attendance minus any other financial aid received.
2. Is there a limit to how much I can borrow through the Parent PLUS loan?
The maximum amount you can borrow through a Parent PLUS loan is the school’s cost of attendance minus any other financial aid.
3. Are there any minimum borrowing limits for Parent PLUS loans?
There is no specific minimum borrowing limit for Parent PLUS loans, but some schools may have their own limits or requirements.
4. Can I use a Parent PLUS loan to cover my child’s living expenses?
Yes, you can use funds from a Parent PLUS loan to cover various education-related expenses, including living expenses.
5. Are there any additional fees associated with Parent PLUS loans?
Yes, there is an origination fee charged for each disbursement of a Parent PLUS loan. The current fee is a percentage of the loan amount and is deducted proportionally from each disbursement.
6. Can I borrow a Parent PLUS loan for multiple children simultaneously?
Yes, you can take out a Parent PLUS loan for each child in your family who is enrolled in an eligible program at least half-time.
7. Is a credit check required for obtaining a Parent PLUS loan?
Yes, a credit check is necessary to qualify for a Parent PLUS loan. However, it is not as strict as other types of loans.
8. Can I defer repayment on a Parent PLUS loan?
Yes, you can request a deferment while your child is enrolled at least half-time and for an additional six months after they graduate or drop below half-time enrollment.