The Parent PLUS Loan is a federal loan program designed to help parents of undergraduate students pay for educational expenses. Unlike traditional student loans, Parent PLUS loans are borrowed by the parent, not the student, and the parent is responsible for repaying the loan.
The deadline to apply for a Parent PLUS Loan for the 2022-2023 academic year is June 30, 2023. Parent borrowers must apply for a Parent PLUS Loan each year that their child is enrolled in school and is eligible for financial aid.
In this guide, we will provide you with all the information you need to know about the Parent PLUS Loan deadline 2022, including eligibility requirements, how to apply, and repayment options. Whether you’re just starting to explore your options or you’re ready to apply for a Parent PLUS Loan, this guide will help you through the process.
Parent PLUS Loan Deadline 2022
Remember these key points about the Parent PLUS Loan deadline 2022:
- Deadline: June 30, 2023
- Who can apply: Parents of undergraduate students
- Loan amount: Up to the cost of attendance minus other financial aid
- Interest rate: 7.54% (fixed)
- Repayment: Begins 60 days after the loan is fully disbursed
To learn more about the Parent PLUS Loan and to apply, visit the Federal Student Aid website.
Deadline: June 30, 2023
The deadline to apply for a Parent PLUS Loan for the 2022-2023 academic year is June 30, 2023. This means that you must submit your Parent PLUS Loan application by this date in order to receive the loan for the upcoming school year.
It's important to note that the deadline is the same for all Parent PLUS Loan borrowers, regardless of when your child's school year starts or when you receive your financial aid award letter. To ensure that you have enough time to complete the application and receive the loan funds before the school year begins, it's best to apply for a Parent PLUS Loan as early as possible.
If you miss the June 30, 2023 deadline, you may still be able to apply for a Parent PLUS Loan, but you may not receive the loan funds in time for the start of the school year. You may also have to pay a late fee.
To avoid any delays or complications, make sure to submit your Parent PLUS Loan application well before the June 30, 2023 deadline.
To learn more about the Parent PLUS Loan and to apply, visit the Federal Student Aid website.
Who can apply: Parents of undergraduate students
The Parent PLUS Loan is available to parents of undergraduate students who are attending an eligible college or university. To be eligible for a Parent PLUS Loan, the student must:
- Be enrolled at least half-time in a degree or certificate program
- Be making satisfactory academic progress
- Not be in default on a federal student loan or owe a refund on a federal student grant
There are no income or credit requirements for the parent borrower, but the parent must pass a credit check. If the parent borrower has an adverse credit history, they may need to get a cosigner for the loan.
The Parent PLUS Loan can be used to cover the cost of attendance, minus any other financial aid that the student is receiving. The maximum loan amount is the cost of attendance minus any other financial aid, up to the annual loan limits set by the federal government.
To apply for a Parent PLUS Loan, the parent borrower must complete the Free Application for Federal Student Aid (FAFSA) and the Parent PLUS Loan application. The FAFSA is used to determine the student's eligibility for federal financial aid, including the Parent PLUS Loan.
Loan amount: Up to the cost of attendance minus other financial aid
The maximum amount that you can borrow with a Parent PLUS Loan is the cost of attendance, minus any other financial aid that your child is receiving.
The cost of attendance includes the following expenses:
- Tuition and fees
- Room and board
- Books and supplies
- Transportation
- Other expenses related to attending school
To determine the amount of your Parent PLUS Loan, the lender will subtract any other financial aid that your child is receiving from the cost of attendance. This includes Pell Grants, scholarships, and other federal and state grants and loans.
For example, if the cost of attendance at your child's school is $20,000 and your child is receiving a Pell Grant of $6,000 and a state grant of $2,000, then the maximum amount that you can borrow with a Parent PLUS Loan is $12,000 ($20,000 - $6,000 - $2,000 = $12,000).
It's important to note that the Parent PLUS Loan is not a need-based loan. This means that you can borrow the full amount of the loan, even if you have other financial resources available to pay for your child's education.
Interest rate: 7.54% (fixed)
The interest rate on the Parent PLUS Loan is fixed at 7.54%. This means that the interest rate will not change over the life of the loan.
- What is an interest rate?
An interest rate is the amount of money that you pay each year to borrow money. Interest rates are expressed as a percentage of the amount of money that you borrow.
- Why is the interest rate on the Parent PLUS Loan fixed?
The interest rate on the Parent PLUS Loan is fixed because it is a federal loan. The federal government sets the interest rates on all federal student loans, including the Parent PLUS Loan.
- How does the interest rate on the Parent PLUS Loan compare to other loans?
The interest rate on the Parent PLUS Loan is higher than the interest rates on most other types of loans, such as personal loans and home equity loans. However, the interest rate on the Parent PLUS Loan is lower than the interest rates on some other types of student loans, such as private student loans.
- How is the interest on the Parent PLUS Loan calculated?
The interest on the Parent PLUS Loan is calculated daily and then added to the principal balance of the loan. This means that the amount of interest that you pay each month will increase as the principal balance of the loan increases.
To learn more about the interest rate on the Parent PLUS Loan and how it is calculated, you can visit the Federal Student Aid website.
Repayment: Begins 60 days after the loan is fully disbursed
Repayment of the Parent PLUS Loan begins 60 days after the loan is fully disbursed. This means that you will have a 60-day grace period before you have to start making payments on the loan.
The minimum monthly payment on the Parent PLUS Loan is $50. However, you can choose to pay more than the minimum payment each month. If you pay more than the minimum payment, you will pay off the loan faster and save money on interest.
There are several different repayment plans available for the Parent PLUS Loan. You can choose the repayment plan that best fits your budget and financial situation.
Some of the most common repayment plans for the Parent PLUS Loan include:
- Standard Repayment Plan: This is the most common repayment plan. Under this plan, you will make fixed monthly payments for 10 years.
- Extended Repayment Plan: This plan allows you to extend the repayment period to up to 25 years. This will lower your monthly payments, but you will pay more interest over the life of the loan.
- Graduated Repayment Plan: This plan allows you to make smaller monthly payments at first, which then gradually increase over time. This plan may be a good option if you expect your income to increase in the future.
- Income-Driven Repayment Plan: This plan bases your monthly payments on your income and family size. This plan may be a good option if you have a low income or a large family.
FAQ
If you're a parent considering taking out a Parent PLUS Loan, you may have some questions. Here are some frequently asked questions about the Parent PLUS Loan:
Question 1: What is the Parent PLUS Loan?
Answer 1: The Parent PLUS Loan is a federal loan that allows parents of undergraduate students to borrow money to help pay for their child's education.
Question 2: Who is eligible for the Parent PLUS Loan?
Answer 2: To be eligible for the Parent PLUS Loan, you must be the parent of a dependent undergraduate student who is enrolled at least half-time in a degree or certificate program at an eligible college or university.
Question 3: What is the interest rate on the Parent PLUS Loan?
Answer 3: The interest rate on the Parent PLUS Loan is fixed at 7.54%.
Question 4: How much can I borrow with a Parent PLUS Loan?
Answer 4: The maximum amount that you can borrow with a Parent PLUS Loan is the cost of attendance, minus any other financial aid that your child is receiving.
Question 5: When do I have to start repaying the Parent PLUS Loan?
Answer 5: Repayment of the Parent PLUS Loan begins 60 days after the loan is fully disbursed.
Question 6: What repayment plans are available for the Parent PLUS Loan?
Answer 6: There are several different repayment plans available for the Parent PLUS Loan, including the Standard Repayment Plan, Extended Repayment Plan, Graduated Repayment Plan, and Income-Driven Repayment Plan.
Question 7: Can I prepay the Parent PLUS Loan?
Answer 7: Yes, you can prepay the Parent PLUS Loan at any time without penalty.
Closing Paragraph for FAQ: If you have any other questions about the Parent PLUS Loan, you can visit the Federal Student Aid website or contact your loan servicer.
Once you've borrowed a Parent PLUS Loan, there are a few things you can do to manage the loan and repay it successfully:
Tips
Once you've borrowed a Parent PLUS Loan, there are a few things you can do to manage the loan and repay it successfully:
Tip 1: Make regular payments on time.
The most important thing you can do to repay your Parent PLUS Loan is to make regular payments on time. If you miss payments, you will be charged late fees and your credit score will be damaged.
Tip 2: Consider setting up automatic payments.
Setting up automatic payments is a great way to ensure that you never miss a payment. You can set up automatic payments through your loan servicer's website or by calling their customer service number.
Tip 3: Make extra payments when you can.
If you have the money, consider making extra payments on your Parent PLUS Loan each month. This will help you pay down the loan faster and save money on interest.
Tip 4: Explore loan forgiveness options.
There are several loan forgiveness programs available for Parent PLUS Loans. If you work in certain public service jobs, you may be eligible for loan forgiveness after 10 years of service. You may also be eligible for loan forgiveness if your child dies or becomes disabled.
Closing Paragraph for Tips: By following these tips, you can manage your Parent PLUS Loan and repay it successfully.
The Parent PLUS Loan can be a helpful way to pay for your child's education. However, it's important to understand the terms of the loan and to make sure that you can afford the monthly payments before you borrow.
Conclusion
The Parent PLUS Loan can be a helpful way to pay for your child's education. However, it's important to understand the terms of the loan and to make sure that you can afford the monthly payments before you borrow.
If you're considering taking out a Parent PLUS Loan, here are a few things to keep in mind:
- The deadline to apply for a Parent PLUS Loan for the 2022-2023 academic year is June 30, 2023.
- The interest rate on the Parent PLUS Loan is fixed at 7.54%.
- Repayment of the Parent PLUS Loan begins 60 days after the loan is fully disbursed.
- There are several different repayment plans available for the Parent PLUS Loan.
- You can prepay the Parent PLUS Loan at any time without penalty.
If you have any questions about the Parent PLUS Loan, you can visit the Federal Student Aid website or contact your loan servicer.
Closing Message: The Parent PLUS Loan can be a helpful way to pay for your child's education, but it's important to borrow responsibly. Make sure that you understand the terms of the loan and that you can afford the monthly payments before you borrow.