Do students need to take loans before parents can get Parent PLUS loans?

No she doesnt have to take loans first, Parent PLUS is seperate. My son didnt take any loans but I got approved for Parent PLUS last yr. You just need decent credit.

That's such a relief! The person we talked to made it sound like she had to max out her federal loans first. Did you apply through studentaid.gov or through the school?

i think ur daughter should take the subsidized loans first if she qualifies bc they don't accrue interest while shes in school and the interest rates are lower than PLUS loans. Parent PLUS interest is like 2% higher and starts accruing immediately

That's a good point about the interest rates. I didn't realize there was such a big difference. I'll have to look at what subsidized loans she qualifies for in her aid package.

To clarify, your daughter does NOT need to take out any student loans before you can apply for a Parent PLUS loan. These are completely separate programs. However, there are some financial considerations to keep in mind:\n\n1. Direct Subsidized Loans (if your daughter qualifies) have better terms than Parent PLUS loans - no interest while in school and lower interest rates overall\n2. Direct Unsubsidized Loans have slightly lower interest rates than Parent PLUS\n3. Parent PLUS loans require a credit check while student loans don't\n4. Parent PLUS loans are entirely in the parent's name and responsibility\n\nMany financial aid advisors recommend students take their full Direct Loan eligibility first (especially subsidized) before parents take PLUS loans, but this is a recommendation based on loan terms, not a requirement.

This is 100% correct. I work in financial aid and we always recommend students take their full subsidized loan eligibility first, then unsubsidized, and only then should parents consider PLUS loans. But there's absolutely no requirement that students must take loans before parents can apply for PLUS.

The school financial aid office gave me the EXACT SAME runaround last year!!! They kept saying my son had to take loans first which is COMPLETELY FALSE. I eventually had to escalate to the director of financial aid to get correct information. Parent PLUS is completely separate and you can apply anytime as long as your credit is decent. Don't let them mislead you!!!

Wow, it's frustrating that they're giving out wrong information! Did you have any trouble with the application process once you finally got to it?

Has anyone here tried using Claimyr to get through to the Federal Student Aid people? I was having similar issues with conflicting information last year and spent DAYS trying to get through to someone at FSA. A friend recommended claimyr.com and they got me through to an agent in about 10 minutes who confirmed Parent PLUS eligibility doesn't depend on student loans. They have a video demo at https://youtu.be/TbC8dZQWYNQ that shows how it works. Totally worth it when you're dealing with contradictory information.

omg yes!! used it last month when my daughters SAI was calculated wrong. got thru in like 15 mins after trying for days on my own

I hadn't heard of this service before. I'll check it out if we keep getting the runaround. Thanks for sharing!

btw the parent plus application is pretty easy, just go to studentaid.gov and sign in with your parent FSA ID (not your daughters). The credit desicion is instant unless u have something weird on your report. Just make sure you apply for the right academic year

Thanks! I created my FSA ID when we did the FAFSA but I wasn't sure where to go from there. I'll check out the Parent PLUS application section.

One other important thing to note: while your daughter doesn't need to take loans before you can get a Parent PLUS loan, if you are denied the PLUS loan due to adverse credit history, your daughter would then become eligible for additional unsubsidized loan amounts. This is one of the few instances where the loans are directly connected.

That's really good to know. So if I get denied, she can actually get more in her name? I think my credit is okay, but it's good to understand all the implications.

Just to add another important detail - Parent PLUS loans have an origination fee of about 4.2% while Direct Subsidized/Unsubsidized loans have a lower fee of around 1.1%. This is another reason why financial aid offices often suggest students take their maximum eligibility in Direct Loans first - but again, this is financial advice, not a requirement for PLUS loan eligibility.

I had no idea about the origination fee difference! That's significant. It seems like the subsidized loans really are the better deal all around. I'll need to have my daughter check exactly what types of loans are in her financial aid package.

As someone who just went through this process last year, I can confirm what others have said - there's absolutely no requirement for your daughter to take loans before you can apply for Parent PLUS. The misinformation from financial aid offices is unfortunately common. I'd recommend going directly to studentaid.gov and applying yourself rather than relying on the school's guidance. Also, definitely have your daughter accept any subsidized loans she's eligible for first since they don't accrue interest while she's in school. The interest rate difference alone makes it worth prioritizing student loans over Parent PLUS when possible. Good luck with your decision before the May 1st deadline!