What is a PLUS Loan?

The U.S. Department of Education administers the Federal Family Education Loan (FFEL) Program of which the PLUS Loan program is part of. The FFEL Loan programs consist of what are generally known as Stafford Loans (for students) and PLUS Loans (for parents and graduate students). Your parents can obtain a PLUS Loan to help pay your education expenses if you are a dependent undergraduate student enrolled at least half time in an eligible program at an eligible school. This is a credit based loan so your parent must have an acceptable credit history. Interest is charged on a PLUS Loan from the date of the first disbursement until the loan is paid in full.