The Federal Direct Parent Loan for Undergraduate Students (PLUS) allows the parents of dependent students to borrow a low interest, federally insured loan to cover costs not already covered by a student's aid package up to the student's cost of attendance. Eligibility is determined by the credit-worthiness of the applicant. If a parent is denied a PLUS loan due to credit, their dependent student may be eligible for an additional unsubsidized Direct Loan.

The PLUS loan has a fixed interest rate of 7.9%.

Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years. Parents can request to have payments deferred while the student is in school; however, interest will accrue and be capitalized into the principle when repayment starts.

PLUS loans are the financial responsibility of the parent borrower, not the student.

The University of South Carolina encourages students to apply for a federal student loans before parents apply for a PLUS Loan due to more favorable interest and repayment options.

How to apply
Federal Parent PLUS Loan FAQ