How this calculator works
The origination fee is taken out of each disbursement, so your student receives less than you borrow, but you repay the full amount. The payment uses the standard repayment formula over the term you choose.
Worked example
With the example values below: Monthly payment, $252.70 (10-year standard plan). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Amount borrowed | $20,000 |
| Interest rate | 8.94% |
| Origination fee | 4.228% |
| Repayment term | 10 yrs |
How Parent PLUS loans work
Parent PLUS loans are federal loans that parents of dependent undergraduates borrow in their own names. The parent is fully responsible for repayment; the debt can't be transferred to the student. Approval requires no adverse credit history, but there's no minimum credit score or income test.
They carry the highest federal rate and an origination fee of 4.228%, which is taken out of each disbursement. Borrow $20,000 and about $845 goes to the fee, so the school receives about $19,155 while you repay $20,000 plus interest.
New borrowing limits from July 2026
For loans made on or after July 1, 2026, Parent PLUS borrowing is capped at $20,000 per year per student and $65,000 in total per student. Previously parents could borrow up to the full cost of attendance minus other aid, with no aggregate cap.
Families transitioning in the middle of a degree may have special rules, so check with the school's financial aid office before planning on a specific amount.
Repayment options
Repayment begins after the final disbursement, though parents can request deferment while the student is enrolled at least half time and for six months afterward; interest accrues the whole time. Parent PLUS loans can be repaid on the standard plan.
Parent PLUS loans aren't eligible for the new Repayment Assistance Plan. Parents who consolidated before July 1, 2026 may have access to income-based options under transition rules, so check your servicer's current guidance.
Alternatives to consider first
The student loan calculator shows the student's own payment for comparison.
- Make sure the student has used their own federal Direct Loans, which have lower rates and fees.
- Look for grants, scholarships, work-study and school payment plans.
- Compare private parent loans, which may have lower rates for strong credit but fewer protections.
- Consider a less expensive school or living arrangement.
Frequently asked questions
What is the Parent PLUS loan limit?
For loans made from July 1, 2026, $20,000 per year per dependent student and $65,000 in total per student. Earlier loans followed the old rule of up to the cost of attendance minus other aid.
What is the Parent PLUS origination fee?
4.228% of the loan, deducted from each disbursement. On a $20,000 loan, about $845 goes to the fee.
Can Parent PLUS loans be transferred to the student?
No. The parent is the borrower and remains legally responsible. The student can help repay informally, or refinance the debt into their own name with a private lender if they qualify.
Do Parent PLUS loans qualify for income-driven repayment?
They aren't eligible for the new Repayment Assistance Plan. Under older rules, consolidated Parent PLUS loans could use Income-Contingent Repayment; check current transition rules with your servicer.
Can Parent PLUS loans be forgiven?
They can be discharged if the parent dies or becomes totally and permanently disabled, or if the student dies. Parents working in public service may qualify for Public Service Loan Forgiveness under eligible plans.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.