Are You Eligible for a Parent PLUS Loan?

You may qualify for a parent PLUS loan if you meet the following eligibility requirements:

• You're the parent of a qualified undergraduate student.

• You meet basic federal aid requirements.

• You don't have an adverse credit history.

Here’s more information about parent PLUS loan eligibility and what to do if you don't qualify.

What credit score is needed for a parent PLUS loan?

No minimum credit score is needed to get a parent PLUS loan. Federal loans aren't like private parent student loans, which use your credit score to determine whether you qualify and what interest rate you'll receive.

But parent PLUS loans do have a credit check, and you won't qualify if you have adverse credit history. That can include negative line items on your credit report like payments that are 90 days late, tax liens and more.

Check your credit for adverse information before applying for a parent PLUS loan. You're entitled to one free report a year from each credit reporting bureau — Equifax, Experian and TransUnion — or you can get a free credit report through NerdWallet.

Who can apply for a parent PLUS loan?

You must be a parent. Only parents — including adoptive and, in some cases, stepparents — can qualify for a parent PLUS loan. You can't get a parent PLUS loan if you're a grandparent or guardian, even if you're legally responsible for a child.

Your child must be an undergraduate. Your child must be a dependent undergraduate student enrolled at least half-time at an eligible college or career school. There aren't parent PLUS loans for graduate students, but graduate or professional students can apply for a Direct PLUS Loan on their own.

You both must be eligible for federal student aid. You and your child will need to meet general eligibility requirements for federal loans, including being a U.S. citizen or eligible noncitizen and having a valid Social Security number.

How to apply for a PLUS loan

To apply for a parent PLUS loan, take the following actions:

1. You and your child must submit the Free Application for Federal Student Aid, or FAFSA. You can then fill out the Direct PLUS loan application. The application takes about 20 minutes to complete.

2. Collect necessary personal information before applying. You will need your parent FSA ID, requested loan amount, school name, student information, personal information and employer information.

3. After completing the application, expect a credit check to be performed. If you have adverse credit history, you may be denied a loan. See below for options if you're denied.

Understand parent PLUS loan terms before you borrow

Although the parent PLUS loan is a federal loan, the terms are less generous than federal student loans. Higher interest rates, no grace period and fewer repayment options can make parent PLUS loans harder to repay.

Make sure you understand the loan terms and repayment schedule, especially given other financial priorities, like retirement. Use a parent PLUS loan calculator to get an estimated monthly payment.

» MORE: How Black parents can avoid the parent PLUS loan debt trap

What to do if your application is denied

If you're denied a parent PLUS loan because of the credit requirements, you could become eligible if you get an endorser — which works similarly to having a co-signer for private student loans — or if you can prove extenuating circumstances related to your adverse credit history.