How much can my parents borrow?

The yearly limit on a PLUS Loan is equal to the cost of attendance minus any other financial aid received. If the cost of attendance is $6,000, for example, and $4,000 is received in other financial aid, the parents can borrow up to $2,000. The lender will send the loan funds directly to the school. The funds will first be applied to tuition, fees, room and board, and other school charges. If any loan funds remain, your parents will receive the amount as a check or in cash, unless they authorize the amount to be released to you or to be put into your school account. Any remaining loan funds must be used for your education expenses. Your parents will pay a fee on a percentage of the loan, deducted proportionately each time a loan disbursement is made. For a FFEL PLUS Loan, a portion of this fee goes to the federal government, and a portion goes to the guaranty agency (the organization that administers the PLUS Loan Program in your state) to help reduce the cost of the loans.