The PLUS Student Loan Program

The PLUS student loan program is geared at parents paying for college tuition for a child. PLUS loans offer many of the advantages of federal student loan programs, but they are not meant to serve as the primary form of financing for college tuition.

Benefits of PLUS Loans

PLUS loans are offered at low, fixed interest rates. They often have flexible repayment plans, allowing families to defer loans when necessary or modify terms frequently. In the future, parents can consolidate loans for several children into one lump sum without penalty. There are also no prepayment penalties on the loan at any point. 

PLUS Loan Limitations

PLUS loans are not designed to cover the entire cost of college. In fact, they are supposed to be part of a greater lending puzzle. The student is expected to take some personal loans including student federal loans and private student loans. The difference between the sum of all of these efforts and the remaining tuition may be paid through PLUS loans. The loans do not cover any living expenses. Instead, they are paid directly to the college in the sum required each term. Because they are dispersed each term, parents will need to frequently submit forms to continue the financing over the time a student is at school. 


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