When to apply for Parent PLUS loans - before or after receiving financial aid package?

U def wait until after u get the aid package. Parent plus is basically meant to cover the gap between what your kid gets offered and what u still need to pay. If u apply b4 seeing what they get, ur just guessing at the amount.

You should always wait until after receiving the financial aid package before applying for a Parent PLUS loan. Here's why: 1. The financial aid package will show your Expected Family Contribution (EFC) and what other aid (grants, scholarships, work-study, Direct Subsidized/Unsubsidized loans) your daughter qualifies for. 2. Only then will you know exactly how much you need to borrow through Parent PLUS to cover the remaining costs. 3. PLUS loans have origination fees (around 4.228%), so you don't want to borrow more than necessary. 4. Applying for a PLUS loan doesn't affect the initial aid package - it's considered after other federal aid has been determined. The typical timeline is: submit FAFSA → receive aid packages from schools → determine remaining need → apply for PLUS loan if needed.

My son just went through this whole process last year and I learned ALOT! Definitely wait until you get the financial aid package. We applied for the Parent PLUS loan too early for one school and ended up having to redo the whole thing because we didn't know how much we actually needed yet. Such a headache!!!

Just to add a bit more detail: Colleges typically send their financial aid packages between January and April. Once you receive those, you'll see exactly what the "Cost of Attendance" is at each school, minus any grants, scholarships, and student loans your daughter qualifies for. That remaining gap is what you'd potentially cover with a Parent PLUS loan. The application process for the PLUS loan itself is pretty quick - usually 20-30 minutes online if you have all your information ready. Approval is often immediate if you pass the credit check. So there's really no advantage to applying early, and as others mentioned, several disadvantages.

I work in financial aid at a university, and I want to clarify something important: applying for a Parent PLUS loan does NOT impact the amount of other aid your daughter will receive in her initial package. The FAFSA determines eligibility for grants, work-study, and Direct Loans. PLUS loans are supplemental and designed to help cover the remaining costs. However, some schools have limited institutional funds they award on a first-come, first-served basis. So while you should wait to apply for the PLUS loan until after receiving aid packages, you should still complete the FAFSA as early as possible (which it sounds like you've already done, so good job!). Also, keep in mind that for the 2025-2026 academic year, the PLUS loan interest rate will be determined in May 2025 based on the 10-year Treasury note auction.

my sister tried to do the parent plus last year and omg what a nightmare... she kept callin and couldn't get through to anyone at federal student aid... kept getting disconnected after waiting 2+ hours!! finally she found this service called Claimyr that got her through to an agent in like 10 minutes. You might wanna check it out when u actually apply for the PLUS loan - claimyr.com - they have a video showing how it works https://youtu.be/TbC8dZQWYNQ

JUST A WARNING - be careful with Parent PLUS loans! The interest rates are usually higher than Direct subsidized/unsubsidized loans, and PARENTS are 100% responsible for repayment, not the student! We took one out for our oldest and regret it. Should have looked harder for scholarships or picked a cheaper school. Now we're stuck paying $437/month for the next 9 years. 😫

Also make sure you understand that the parent plus loan is in YOUR name not your daughters. A lot of parents don't realize that. Even if you have an agreement with your kid that they'll help pay it back after graduation, legally it's all on you.

One more thing to consider - even though you should wait for the aid package, you can still get pre-qualified for a Parent PLUS loan earlier just to know if you'll be approved. The pre-qualification is a soft credit check that won't affect your credit score and gives you peace of mind that you'll have that funding option available when you need it. You don't have to actually take out the loan until after you know the exact amount needed. This can be especially helpful if you're choosing between schools and want to know all your financing options are solid before making a final decision.

This is all incredibly helpful! I'm a bit overwhelmed by all the details but feeling much more confident about the process now. It sounds like the consensus is definitely to wait for the aid packages first, then apply for the PLUS loan if needed. I really appreciate everyone sharing their experiences - both the successes and the headaches! It's reassuring to know that the PLUS loan application itself is relatively quick once you have all the information. I'll make sure to keep track of each school's specific timeline recommendations too. Thanks everyone for taking the time to help a nervous parent navigate this process! 🙏