What exactly is a Parent PLUS loan and should I use it to cover remaining FAFSA balance?

Parent PLUS loans are federal loans that parents of dependent undergraduate students can take out to help pay for college costs not covered by other financial aid. They're NOT automatically included in your financial aid package, but they're often mentioned as an option. You need to apply for them separately through studentaid.gov (not through the school directly). As for whether they're the "best" option - it depends on your situation. PLUS loans have higher interest rates than Direct Subsidized/Unsubsidized loans that go directly to students. Current PLUS loan rates are around 8.05% plus a ~4% origination fee. They also require a credit check, though the standards aren't as strict as private loans.

my dad took out a parent plus loan for me last yr and we REGRET IT!!!! the interest is crazy high and payments start right away unlike student loans where u can wait til after graduation. if u have good credit maybe check out private loans instead

I've worked with many families navigating this exact situation. Parent PLUS loans are separate from the FAFSA, but you'll use your FSA ID to apply. Here's what to consider before going that route: 1. Interest rates are higher than student loans (currently 8.05%) 2. There's an origination fee around 4% 3. The parent (not student) is 100% legally responsible for repayment 4. Credit check required, but it's more lenient than private loans 5. Access to federal repayment plans if you struggle later Alternatives to consider: - Private student loans (if student has good credit or cosigner) - Home equity loans (if you own a home, usually lower interest) - Payment plans through the school (often interest-free) - Additional scholarships (check with the financial aid office) For $8,500, I'd strongly recommend asking the school about monthly payment plans before jumping into more debt.

Has anyone tried calling the Federal Student Aid Information Center to get help understanding Parent PLUS loan options? I tried calling last week and couldn't get through after being on hold for 45 minutes. So frustrating when you're trying to make important financial decisions and can't get basic information!

Why is nobody talking about the BIGGEST issue with Parent PLUS loans?? THE GOVERNMENT CAN GARNISH YOUR SOCIAL SECURITY AND TAX REFUNDS if you fall behind!!! Private loans can't do that! They market these loans as being "flexible" but they're actually MORE dangerous than private loans in some ways. At least do your research before signing up for government debt that follows you to the grave.

One thing I haven't seen mentioned yet - Parent PLUS loans can be eligible for Income-Contingent Repayment (ICR) if you consolidate them into a Direct Consolidation Loan. This can make monthly payments more manageable if you're struggling. Not a reason to take the loan necessarily, but good to know the option exists.

Update: I called my daughter's school and asked about payment plans. They offer a 10-month interest-free plan that would make our payments around $850/month. That's actually doable for us! So much better than taking on more debt. Thank you all for pointing me in the right direction!