Parent Plus Loan amount confusion - COA is 30k but I'm short 16k total?
I just got approved for a Parent Plus loan for my daughter's sophomore year (yay!) but I'm confused about the maximum amount. The Cost of Attendance is listed as $30,000 for the year, and we're short $8,000 per semester after her grants and direct loans. Does this mean I can borrow up to $16,000 total for the year, or am I limited to the difference between her existing aid and the COA? The financial aid office keeps putting me on hold forever and I'm trying to figure this out before the payment deadline next week. This is my first time taking out a Parent Plus loan and I'm completely lost with all these calculations!
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Admin_Masters
Congratulations on your approval! To answer your question: Yes, you can borrow up to the Cost of Attendance MINUS any other financial aid received. So if COA is $30k, and your daughter already has some grants and direct loans, then you can borrow the remaining amount needed to cover costs (your $8k per semester or $16k total). The Parent Plus loan is specifically designed to cover that gap between other aid and the total COA. Just be mindful that there's a ~4.2% origination fee deducted from the loan amount before disbursement, so you might want to factor that in when deciding how much to borrow.
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Charlotte White
•Thank you so much for explaining! That makes sense. So we request the full $16k to cover both semesters? And I didn't know about that origination fee - does that mean I should request a bit more to cover that 4.2% that gets taken out?
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Matthew Sanchez
my daughter just started college last yr and we did the same thing. u can get however much $ u need up to the COA minus other aid. so ya, sounds like 16k is your max. but watch out cuz its super easy to max these out every yr and then end up with like 60k+ in parent loans by graduation!!
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Charlotte White
•That's exactly what I'm worried about! Did you end up taking the full amount? We're looking at other options too like a payment plan for part of it, but with these interest rates going up I'm not sure what's best.
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Matthew Sanchez
•we took full amount 1st yr but now we're trying 2 do less. looking into private loans too but those interest rates r crazy rn
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Ella Thompson
HOLD UP!!!! Make sure you're looking at the RIGHT COA number! My daughter's school had multiple COA amounts depending on housing situation (on-campus, off-campus, with parents). I borrowed WAY TOO MUCH the first year because I was looking at the wrong COA number!!! Double-check with financial aid office what THE EXACT COA is for your daughter's situation before you take out the full $16k. You don't want to be paying back money you didn't actually need!!
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Charlotte White
•Oh no! I didn't even think about that. The $30k was from her award letter, but she's planning to live off campus with roommates this year instead of the dorms. I'll definitely double check if that changes things!
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Ella Thompson
•YES PLEASE CHECK!!! When my daughter moved from dorms to apartment, the official COA dropped by almost $4k even though her actual expenses didn't change much. The financial aid office doesn't exactly advertise these differences! Call them ASAP!
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JacksonHarris
Just to add some clarity on your Parent Plus loan situation: The maximum you can borrow is indeed the Cost of Attendance minus other financial aid received. If your COA is $30,000 and you're short $8,000 per semester ($16,000 total), then $16,000 would be your maximum eligible amount for the Parent Plus loan. However, I'd recommend considering a few things: 1. Parent Plus loans have an origination fee (currently around 4.228%), so if you need exactly $16,000 to cover costs, you might want to borrow slightly more to account for this fee 2. Interest begins accruing immediately on Parent Plus loans 3. The standard repayment period is 10 years, but you can request extended repayment options Also, double-check your daughter's SAI (Student Aid Index) to ensure she's maximized her subsidized and unsubsidized direct loans before taking the full Parent Plus amount.
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Charlotte White
•Thank you for such a detailed explanation! Her financial aid package shows she's already getting the maximum direct loans ($7,500 for the year since she's a sophomore). The SAI from our FAFSA was pretty high (around $35k) which is why we didn't qualify for much grant aid. Does the Parent Plus loan repayment have to start right away or can we defer it while she's in school?
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JacksonHarris
•You're welcome! Yes, with an SAI of $35k, the direct loans would be mostly or entirely unsubsidized. For Parent Plus loans, you can request deferment while your daughter is enrolled at least half-time, but interest will continue to accrue. Alternatively, you could make interest-only payments during this period to prevent the loan balance from growing significantly. When you complete the loan application, you'll see options for when you want to begin repayment.
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Jeremiah Brown
Parent Plus loans are a TRAP!! They have the highest interest rates of ANY federal student loan - almost 8% right now!! Plus that origination fee is highway robbery. Look into private student loans instead. My son got a 5.3% rate through Sallie Mae and I'm just a co-signer instead of being fully responsible like with Plus loans.
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Admin_Masters
•While the interest rate is higher than Direct loans, Parent Plus loans offer federal benefits that private loans don't - income-contingent repayment options (through consolidation), potential loan forgiveness, hardship forbearance, and death/disability discharge. Private loans typically have none of these protections. It's important to consider the entire picture, not just the interest rate.
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Charlotte White
•Thanks for the suggestion! I did look into private loans but my credit isn't great right now, so the rates they offered me were even higher than the Parent Plus. Plus I like having the option to defer payments while she's in school.
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Royal_GM_Mark
If you're having trouble reaching the financial aid office, I'd recommend trying Claimyr (claimyr.com). I was in the same boat last semester - couldn't get through to anyone for days about my Parent Plus loan questions. Claimyr got me connected to an actual FSA agent in about 20 minutes who answered all my Parent Plus questions and even helped fix an issue with my application. There's a video showing how it works: https://youtu.be/TbC8dZQWYNQ - definitely made the process less stressful!
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Charlotte White
•I've never heard of this! I've been trying to get through to someone for three days now. I'll check out that link - at this point I'm willing to try anything to get this loan processed before the payment deadline.
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Jeremiah Brown
•Does it actually work? I've wasted HOURS on hold with FSA just to get disconnected!
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Amelia Cartwright
Hi there! I'm a financial aid counselor at a university (not yours obviously lol). Let me clarify a couple things: 1) Yes, you can borrow up to the Cost of Attendance minus other aid, so $16k sounds correct 2) HOWEVER, sometimes the COA used for calculating aid eligibility is different from what's published on websites. For example, if your daughter has a scholarship that covers books, her COA for loan purposes might be reduced 3) Parent Plus loans do have that origination fee, so if you need exactly $16k to hit her account, you'd need to borrow about $16,700 to account for the fee 4) The FSA is SLAMMED right now because of the FAFSA delays this year, so getting through on the phone is nearly impossible My advice: Submit the Parent Plus request for the amount you need plus a bit extra for the origination fee, then follow up with your specific school's financial aid office by email with any questions.
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Charlotte White
•Thank you so much for such clear information! She doesn't have any scholarships that cover specific expenses, just a small merit scholarship that goes toward tuition. I'll adjust the amount to account for that origination fee - that's really helpful to know. Do you have any idea how long it typically takes for the loan to process and disburse once approved?
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Amelia Cartwright
•Happy to help! Once you complete the Parent Plus application and MPN (Master Promissory Note), the school typically certifies the loan within a few days to a week. After certification, the funds usually disburse at the beginning of the term. However, if you're asking now and the term is about to start, many schools have a priority processing deadline that may have passed. I'd recommend applying ASAP and then emailing the school's financial aid office with your student's ID number to let them know you've completed the Parent Plus application and need funds for the upcoming term.
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Liam Brown
Just wanted to add one more thing that might help - if you're worried about borrowing too much, you can always request a partial cancellation of the Parent Plus loan before it disburses! I did this last year when my daughter got an unexpected scholarship after I'd already been approved for the full amount. You just need to contact the financial aid office in writing before the disbursement date. It's much easier to reduce the loan amount before disbursement than to return funds after they've been sent to your account. Also, some schools allow you to set up payment plans for part of the balance, so you might not need to borrow the full $16k if you can pay a portion out of pocket over the semester.
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