Personal loan amounts vary by lender, but some lenders allow consumers to borrow up to $100,000. The amount a lender may approve you to borrow will depend on various factors, such as your credit score, income and debt-to-income ratio (DTI).
Key takeaways. To qualify for a parent Direct PLUS loan, your child must be an undergraduate student enrolled in an eligible college at least half time. You also have to pass a credit check or you may have to apply with a cosigner.
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.
The maximum Direct PLUS Loan amount that can be borrowed is the cost of attendance at your school minus any other financial assistance received.
With federal PLUS loans, the government will check for an adverse credit history, although there is still no minimum credit score requirement. Those who have a less-than-perfect credit history, however, may need to meet additional requirements to get approved.
Note: You can request an increase in the amount of a Direct PLUS Loan you previously requested if it's for the same school, same award year, and same student.
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.
Can the loan be transferred to the student? No, a Direct PLUS Loan made to a parent cannot be transferred to the child. You, the parent borrower, are legally responsible for repaying the loan.
With FICO, fair or good credit scores fall within the ranges of 580 to 739, and with VantageScore, fair or good ranges between 601 to 780. Many personal loan lenders offer amounts starting around $3,000 to $5,000, but with Upgrade, you can apply for as little as $1,000 (and as much as $50,000).
How much can you borrow? First time buyers maximum mortgage level is 4 times your gross annual income with the mortgage capped at 90% of the purchase price.
There is a limit on the maximum period of time (measured in academic years) that you can receive Direct Subsidized Loans. In general, you may not receive Direct Subsidized Loans for more than 150% of the published length of your program. This is called your “maximum eligibility period”.
Lenders consider your income, debts, credit score, LTV ratio, and affordability to decide how much you can borrow. Understanding these factors helps you prepare for the mortgage application process and make smart decisions about how much you can afford.
A PLUS loan, also known as a direct PLUS loan, is a federal loan for higher education available to the parents of undergraduate students as well as graduate or professional students. PLUS stands for Parent Loan for Undergraduate Students.
The maximum Federal Pell Grant award is $7,395 for the 2024–25 award year (July 1, 2024, to June 30, 2025).
How much can I borrow in Direct PLUS Loans? There are no set annual or aggregate limits. You may borrow up to your full cost of attendance, minus any other financial aid you receive (including Direct Subsidized Loans, Direct Unsubsidized Loans, scholarships, and certain fellowships).
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.
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.
Cons of Borrowing Parent Direct PLUS Loans
Borrowers must undergo a credit check, and adverse credit history might limit eligibility. Borrowers risk borrowing too much and going into default because Direct PLUS Loans don't have strict limits (cost of attendance minus other financial aid received).
Direct PLUS Loans have an interest rate of 8.05% for the 2023-24 school year for all borrowers, compared with 7.05% for Direct Unsubsidized Loans for grad students. They also have a loan fee equal to 4.228% of the principal, which is four times the fee for a Direct Unsubsidized Loan.
Loans are only available for eligible graduate students and parent borrowers. Borrowers with adverse credit history typically can't qualify on their own. Parents and grad students can borrow up to the cost of attendance, minus other aid received.
You can borrow $50,000 - $100,000+ with a 750 credit score. The exact amount of money you will get depends on other factors besides your credit score, such as your income, your employment status, the type of loan you get, and even the lender.
The repayment period begins after the loan is fully paid out, but you can request a deferment so you don't have to make payments while your child is enrolled at least half-time and for six months after they graduate, leave school, or drop below half-time enrollment.