Parent PLUS Loans come with the highest interest rates of all federal student loans, but they're standardized, so everyone who qualifies gets the same rate. For loans disbursed before July 1, 2023, the interest rate is 7.54%, plus a funding fee worth 4.228% of the total loan amount. Borr...
Parent PLUS loan interest rates and fees are set by the Education Department, based on when the loan is originated. PLUS loans have the highest rates of any type of federal student loan. Private parent loan interest rates can be fixed or variable and are based on the borrower's...
"Parent PLUS loans are the only type of federal student loan that a parent can take out for their student," she says. "Since there is an annual limit for federal undergraduate loans that can be taken out by the students under their names, Parent PLUS loans can be a great tool when the...
What is a federal direct PLUS loan for parents? Federal direct PLUS loansare government loans that parents can take out to help pay for a child's college education. They have higher interest rates and fees and qualify for fewer repayment plans than federal direct subsidized and unsubsidized loa...
Pros And Cons Of Refinancing A Parent PLUS Loan Refinancing can potentially lower the interest rate, especially since Parent PLUS loans often carry higher rates than other federal loans. It also allows the student to build theircredit historythrough consistent repayments. ...
Why we chose it:Parents seeking a federally subsidized loan should considerDirect PLUS Loansfor parents. Parent PLUS loans have a fixed interest rate for the length of the loan, which can help with financial planning and prevent an increase in payment amounts if interest rates rise. Parents wit...
Variable Rates:The current index for variable rate loans is derived from the 30-day Average Secured Overnight Financing Rate (“SOFR”) and changes in the SOFR index may cause your monthly payment to increase. Although the rate will vary after you are approved, it will never exceed 15.00%....
(minus other federal aid) with PLUS loans, use them to fill funding gaps after their student hits the borrowing limit of no more than $7,500 per year from the government.Parent PLUS loanscome with higher interest rates and higher origination fees than undergraduate federal student loans, ...
What Are the Fees Associated With Refinancing a Parent PLUS Loan? A private lender might charge anapplication, origination, or disbursement fee, or a prepayment penalty. However, some lenders offer fee-free refinancing loans. *Fixed rates range from 3.99% APR to 9.99% APR with 0.25% autopay ...
Direct federal loans:If possible, consider having your child take outDirect Subsidized or Direct Unsubsidized student loans. These loans have lower interest rates than Parent PLUS loans, don’t have to be repaid while the student is in school, and can be put on income-based repayment plans af...