Parent PLUS loans explained

By Select Your College editors · Updated Nov 3, 2026 · Where our data comes from

The campus of Towson University — Photo: Katie Simmons-Barth Photography from Baltimore, USA, CC BY 2.0, via Wikimedia Commons

Parent PLUS loans let parents borrow federal money for a dependent student's college costs. The rules changed for new loans on July 1, 2026. Here is what the loans cost, how much parents can borrow now and how repayment works.

Students already enrolled with a loan before July 1, 2026 can keep the old limits for a time. Sources in the guide.

How much parents can borrow

For loans made from July 1, 2026, parents can borrow up to $20,000 a year per dependent student and $65,000 in total per student (Federal Student Aid, checked October 23, 2026). Before then, parents could borrow up to the full cost of attendance minus other aid.

Some students keep the old limits for a while. Under the transition rules, a student who was enrolled in a program by June 30, 2026 and had a federal loan disbursed before July 1, 2026 can keep the earlier limits for up to three years or until the end of the program, whichever comes first, as long as they stay in the same program at the same school (Northwestern University, checked October 24, 2026).

What a Parent PLUS loan costs

Interest rate: 9.07% fixed for loans first disbursed from July 1, 2026 to June 30, 2027 (Federal Student Aid).
Fee: 4.228% of each loan, taken out before the money reaches the college, for loans first disbursed from October 1, 2025 to September 30, 2027 (Federal Student Aid).

For comparison, undergraduate Direct Loans in the student's name carry 6.52% for the same year. See the monthly payment for any amount with our student loan calculator.

Repayment changed too

Parent PLUS loans borrowed on or after July 1, 2026 can be repaid only under the new Tiered Standard plan, which does not offer income-driven repayment. Taking a new Parent PLUS loan after that date can also affect the repayment options for a parent's older Parent PLUS loans. Parents who do not borrow new Parent PLUS loans keep their existing options for now (Northwestern University, checked October 24, 2026). Ask your loan servicer how a new loan would affect you before you borrow.

Before you borrow

Use grants, savings and the student's Direct Loans first. They cost less.
Compare colleges by net price. A lower-cost college can remove the need for PLUS loans altogether. Look up what families like yours paid with net price by income.
Borrow by the year, not all at once. With a $65,000 total cap per student, plan for all four years.
Check the payment against your budget, including retirement saving.

Frequently asked questions

How much can parents borrow in Parent PLUS loans?

For loans made from July 1, 2026, up to $20,000 a year and $65,000 in total per dependent student, with transition rules for some students already enrolled.

What is the Parent PLUS interest rate for 2026-27?

9.07% fixed for loans first disbursed from July 1, 2026 to June 30, 2027, plus a 4.228% loan fee.

Can Parent PLUS loans use income-driven repayment?

Parent PLUS loans borrowed on or after July 1, 2026 can be repaid only under the Tiered Standard plan, which does not include income-driven repayment.