Federal Direct Parent PLUS (for parent of undergraduate students only)
A parent may borrow this loan for their undergraduate dependent student to assist in covering the cost of their education. These loans have a fixed interest rate. A default fee is subtracted by the federal government before the loan is disbursed to the student account. The amount borrowed can be up to the cost of education minus financial aid per year. Repayment usually begins 30 days after the last disbursement but deferment while a student is enrolled is available. Family income is not a criterion in obtaining parental loans. A good credit history is required. The application for the Parent PLUS loan is located at studentaid.gov.