Parent PLUS Loans in 2026: Rates, New Borrowing Limits, and Repayment
- Federal Student Aid, "Direct PLUS Loans for Parents" (studentaid.gov/understand-aid/types/loans/plus/parent) - retrieved August 14, 2026
- Federal Student Aid, "Interest Rates and Fees" (studentaid.gov/understand-aid/types/loans/interest-rates) - retrieved August 14, 2026
- IRS, Publication 970, Tax Benefits for Education (irs.gov) - retrieved August 14, 2026
- Federal Student Aid, 34 CFR 685.209 Income-Driven Repayment Plans; PSLF FAQs (studentaid.gov) - retrieved August 14, 2026
All figures are estimates based on publicly available data. Use the linked calculators to model your own situation.
Related Calculators
Frequently Asked Questions
What is the Parent PLUS loan interest rate for 2026-27?▼
For loans first disbursed July 1, 2026 through June 30, 2027, the fixed Parent PLUS rate is 9.07%, according to Federal Student Aid. The 2025-26 rate (disbursed July 1, 2025 to June 30, 2026) was 8.94%. The rate is fixed for the life of the loan.
How much can parents borrow with a Parent PLUS loan in 2026?▼
For new borrowers, annual borrowing is capped at $20,000 per dependent student and $65,000 over the student’s undergraduate career, under the OBBBA limits effective July 1, 2026. Parents who borrowed before that date may keep using the old limit (cost of attendance minus other aid) during a limited transition.
Does a Parent PLUS loan require financial need?▼
No. Eligibility is based on credit, not income or financial need. The student must be enrolled at least half-time and the parent must pass a credit check.
Can a grandparent take out a Parent PLUS loan?▼
No. Only a biological or adoptive parent, or in some cases a stepparent listed on the FAFSA, may borrow a Parent PLUS loan. Grandparents and legal guardians are not eligible unless they have legally adopted the student.
Is Parent PLUS loan interest tax deductible?▼
The parent who is legally responsible for the loan may be able to deduct up to $2,500 of student loan interest on their federal return, subject to IRS income limits (IRS Publication 970). This is a deduction for the parent borrower, not the student.