Parent PLUS loan applications for the 2024-2025 academic year (including Fall 2024) generally open on May 1, 2024, or shortly after, at studentaid.gov. It is recommended to apply by late spring or early summer to ensure funds are processed in time for fall tuition deadlines.
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.
This means that students have from November 14, 2024, to June 30, 2026, to file their FAFSA application for the 2024-2025 school year. The FAFSA deadline is the same whether you are an undergraduate or graduate student. You must complete the FAFSA to be considered for federal financial aid.
Federal Direct Parent PLUS Loans (Parents Only) PLUS Loan Applications for 2026-2027 will be open to apply after May 1st, 2026. Federal Direct Parent PLUS Loans are available to parents (biological or adoptive) of dependent students.
Government Student Loan Applications for the 2024-2025 academic year are available on or after May 1. Ensure to apply at least 8 weeks before the first day of classes in September to avoid funding delays!
The "7-year rule" for student loans generally refers to when negative marks, like defaults, are removed from your credit report (around 7 years after the first missed payment or default date for federal loans, 7.5 years for private loans), but the debt itself doesn't disappear and must be paid off; it's also a benchmark in bankruptcy proceedings where federal loans can become dischargeable after 7 years from when payments were due, though proving "undue hardship" is required and difficult.
The "Parent PLUS loan loophole" refers to the "double consolidation loophole," a multi-step process allowing Parent PLUS borrowers to access cheaper income-driven repayment (IDR) plans (like SAVE) by obscuring the loans' origins, typically requiring two separate consolidations to bypass the normal restriction to Income-Contingent Repayment (ICR). This loophole, which involves consolidating loans into two separate Direct Loans and then consolidating those two into a final loan, has a deadline of July 1, 2025, to be completed to access benefits like potential loan forgiveness after 20-25 years, though its status is uncertain due to ongoing legal challenges.
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).
However, Parent PLUS Loans will be capped at $20,000 per student per year and a $65,000 lifetime limit beginning July 1, 2026. Parents who borrowed before that date can continue borrowing under the current limits for up to three additional years or until their student completes their program.
There is no income that is too high to file a FAFSA. No matter how much you make, you can always submit a FAFSA. Eligibility for need-based financial aid increases as the cost of attendance increases, so even a wealthy student might qualify for financial aid at a higher-cost college.
To be safe, apply for a private student loan roughly two months before the tuition due date. Most schools' payment deadlines for the fall semester are in July or August of that academic year. That means applying in either May or June.
In general, you will be denied if you have adverse credit consisting of any of the following: Bankruptcy discharge within the past five years. Voluntary surrender of personal property to avoid repossession within the last five years. Collateral repossession within the past five years.
After the dependent student has completed the FAFSA, the parent can apply for a Parent PLUS Loan online at https://studentloans.gov under the section “Complete PLUS Request Process.” The parent will need to reapply for the Parent PLUS Loan each new academic year.
A Parent PLUS loan is typically denied due to an "adverse credit history," meaning specific negative credit events like having debts over $2,008 that are 90+ days delinquent, recent charge-offs, collections, tax liens, foreclosures, wage garnishments, or bankruptcy discharges within the last five years. Other reasons can include failing general federal aid requirements or incorrect application information, but the primary hurdle is the credit check for adverse conditions.
Federal student loans have strict borrowing limits and fixed interest rates, while parent loans may offer more flexibility but come with higher rates. Review repayment timelines, deferment options and prepayment rules before deciding which loan is right for your situation.
The government doesn't forgive Parent PLUS Loans when you retire or draw Social Security benefits, but it has programs that will wipe out your remaining balance after you've made a number of student loan payments under an income-driven repayment plan.
Cap on federal parent borrowing: Parents can borrow up to $20,000 per student and per year, with a max lifetime limit of $65,000—for parent PLUS loans.
Are student loans forgiven when you retire? No, the federal government doesn't forgive student loans at age 50, 65, or when borrowers retire and start drawing Social Security benefits.
In Canada, a consumer proposal or bankruptcy will not extinguish your student loan debt unless 7 years have passed from the time you last attended school (part-time or full-time) to the day you file. If it has been less than 7 years, you still have options for payment plans and extended grace periods, etc.