There is no deadline for the Parent PLUS loan (minus that it needs to be applied to prior to the end of the academic year). You can apply for the loan throughout the academic year. I would more check when the bill needs to be satisfied by, aka a plan (loan, payment plan, etc.) in place.
Completing the Online Application: (Note: The online PLUS application for 2024-2025 should not be submitted before June 1, 2024.) You may apply for a Direct PLUS Loan at www.studentaid.gov. If you have problems with the online application you can contact Direct Loan Applicant Services at 1-800-557-7394 for assistance.
Generally, you'll have from 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Your required monthly payment amount will vary depending on how much you borrowed, the interest rates on your loans, and your repayment plan. Choose a repayment plan that best meets your needs.
PLUS loans do not have a grace period; but if you received a PLUS loan as a graduate or professional student, you'll automatically get a six-month deferment after you graduate, leave school, or drop below half-time enrollment. No payments are required during this six-month deferment period.
When the student leaves school, you get a six-month grace period before payments begin. In other words, if a student graduates in May, the first payment on the Parent PLUS Loan would not be due until November.
To be eligible for a Direct PLUS Loan for parents, you must be a biological or adoptive parent (or in some cases a stepparent), not have an adverse credit history, and meet the general eligibility requirements for federal student aid (which the child must meet as well).
How long does processing take? Due to the value of PLUS applications at peak times (particularly summer and the start of the Fall term), PLUS loans can take 4 weeks for processing and for the loan to be posted on the student's financial aid summary.
You, the parent borrower, are legally responsible for repaying the loan.
Parent PLUS loans can potentially be forgiven after 10 years under specific conditions, such as through the Public Service Loan Forgiveness (PSLF) program after consolidation into a direct consolidation loan. Parent borrowers must enroll in the Income-Contingent Repayment (ICR) plan to qualify for PSLF.
How to Use the Double Consolidation Loophole: The key to using the double consolidation loophole is to consolidate each of your Parent PLUS Loans twice. In this scenario, a borrower can have as few as two Parent PLUS Loans.
If you're a parent or graduate student seeking a Direct PLUS Loan, one of the requirements to qualify is that you must not have an adverse credit history. If your application is denied because of an adverse credit history, don't give up. You still have options.
Unlike all other federal student loans, there are no explicit borrowing limits for parent PLUS loans. Parents may borrow up to the full cost of attendance, which is determined by the institution, not the government, and includes books, travel and living expenses. There are no ability-to-repay standards for PLUS loans.
What Are Some Reasons to Avoid PLUS Loans? First, PLUS loans have no automatic grace period. Then there's the fact they aren't eligible for most IDR plans. Then, borrowing too much is easy to do, and finally, they're nearly impossible to get out of, even in bankruptcy.
No minimum credit score is needed to get a parent PLUS loan. Federal loans aren't like private parent student loans, which use your credit score to determine whether you qualify and what interest rate you'll receive. But parent PLUS loans do have a credit check, and you won't qualify if you have adverse credit history.
(Note: The online PLUS application for 2025-2026 should not be submitted before June 1, 2025.) You may apply for a Direct PLUS Loan at studentaid.gov. If you have problems with the online application process you can contact Direct Loan Applicant Services at 1-800-433-3243 for assistance.
What happens to my parent's PLUS loan if my parent dies or if I die? Your parent's PLUS loan will be discharged if your parent dies or if you (the student on whose behalf your parent obtained the loan) die.
The repayment period for Parent PLUS loans starts right after you receive the final disbursement of the loan while your student is in school. Repayment terms usually range from 10 to 25 years. To qualify for the Income-Contingent Repayment Plan, you must consolidate your Parent PLUS loan.
Summary: The Parent PLUS Loan is a federal loan that parents of dependent undergraduate students can use to help pay for their child's education. The Direct Parent PLUS Loan offers a fixed 9.08% interest rate for the 2024 - 2025 school year and flexible loan limits.
The deadline for parent PLUS loan applications varies by institution. The federal deadline for the FAFSA is June 30 of each award year, but many institutions have earlier deadlines. Check with your child's school to see when the deadline for completing a parent PLUS loan is.
The origination fee on a Parent PLUS loan is 4.2% of the loan amount, which can either be taken out of the amount that'll end up being disbursed or added onto the loan amount and thus be charged interest over the life of the loan.
To qualify, borrowers must have a dependent child enrolled at least half time in an eligible school. Unfortunately, grandparents and other relatives can't get a parent PLUS loan unless they legally adopt the student. While you don't need excellent credit to get a PLUS loan, you can't have an adverse credit history.
Based on the information from Federal Student Aid, as of 2022, the average Parent PLUS Loan debt is $29,528. Although that might not sound like a huge amount, it depends on the parent's income.
Your Last Resort: Private Loans
These loans have different repayment options than federal loans and will most likely cost you more in interest. Also, they may not have the same kinds of protections in case of disability or death as do the federal loans. Private loans generally should be taken out only as a last resort.
The Parent PLUS loan application is based on the borrower's credit history; no loan officer will look at your income or other debt or otherwise evaluate whether you can afford to make the payments. It is your responsibility to make sure you aren't borrowing more than you can afford to pay back.