If a dependent student’s parents are divorced, both parents can take out separate Parent PLUS Loans with separate Master Promissory Notes (MPNs).
But the combined Parent PLUS Loans cannot exceed the loan limits.
The interest rates are based on the 10-year Treasury Note (determined each year by the final auction prior to June 1) plus a fix margin (see table).
The interest on a Parent PLUS Loan starts to add up (accrue) from the date the loan is first disbursed. Borrowers can ask the college financial aid office to increase the amount borrowed to cover the fees, up to the annual loan limit.
Some parents borrow Parent PLUS Loans to make sure their children don’t take on too much student loan debt.
But remember, nothing stops parents from helping their children with their student loan payments.
Guidelines for requesting a Parent PLUS Loan: Parent PLUS Loans are available only to the parents of dependent undergraduate students.
We may receive compensation when you click on links to those products.What causes an adverse credit history: If either parent later qualifies for a Parent PLUS Loan, the student’s loan limits return to the dependent student level.(Loan amounts already received under the additional Direct Unsubsidized Loan limits will not count against the lower loan limits.) The interest rates on Parent PLUS Loans are fixed and do not change over the life of the loan.The FAFSA is a requirement to borrow from the Parent PLUS Loan program.To obtain a Parent PLUS Loan, parents should request a PLUS Loan at Student or contact the financial aid office at the student’s college or university.