Are Parent PLUS Loans Federal or Private?

When financial aid like scholarships and grants is not enough to support students for college, they need to apply for loans. Loans are primarily of two types- Federal Parent Plus loans and private loans.

The advantage of Federal Parent Plus loans, as well as private loans, will include obtaining loans at low-interest rates, flexible repayment provisions, payment plans per month, and also borrower benefit facilities is available with almost all loans whether federal or private.

parent plus loan federal or private

Are Parent PLUS loans Federal or Private?

The Parent PLUS loans are federal in nature. They are known to be typically the best loan program available to parents of students who wish to study further. In contrast to the federal options, private loans also offer highly competitive interest rates with no origination fees.

For those who have excellent credit scores with a creditworthy cosigner at disposal, a private parent loan can also be a healthy option.

When a graduate student tries to get a Direct PLUS loan to pay for college, it is known as Graduate PLUS loan. The most recent interest rate on Parent PLUS loan is 7.54% and private loans on the other hand start their interest rate at 0.99%.

How do I know if my Parent PLUS loans are federal?

The loan including the Direct PLUS loans are always federal loans. It is a form of federal student aid that works best for parents as well as their dependents as these cover almost every expense a student will need to fulfill while in college.

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Only a child’s real or adopted parents can go for a loan. However, if the child is legally adopted by their grandparents or by any other person then they too can go for a Parent PLUS loan.

Also, a Federal Parent PLUS program will cover the following educational expenses:

1. Room and boarding along with tuition and fees

2. Books

3. Essential supplies

4. Equipments and transportation

5. There is a small window for personal expenses and other miscellaneous activities.

Also Read: How to Apply for Student Loan Cancellation?

FAQs (Frequently Asked Questions)

Will Federal Parent PLUS loans be forgiven?

A Federal loan will not be forgiven unless under special circumstances like the one recently announced by President Joe Biden the day before yesterday. If you already have a Direct PLUS loan or have a private loan, you may want to consider these below options for a Federal Parent PLUS grant being forgiven:

  1. Federal agencies and military forgiveness programs
  2. State student loan forgiveness and public service loan forgiveness
  3. Income contingency funds that organize repayments
  4. An employer who helps in the payment of student loan assistance
  5. Check for refinancing options if they are available.

What are Federal Direct Parent PLUS loans?

The Federal Direct Parent PLUS loans are aids that a parent can seek to support their child’s education. Here is a bit about the Federal Direct Parent PLUS loan that you should know before you go ahead and apply for the loan.

Under the Federal Parent PLUS loan, parents can claim it for their children. Since it is a loan, you can ask for a suitable amount that you can comfortably pay back.

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Parents need to have a good credit score if they wish to take the Parent PLUS loans and won’t need a co-signer. But if your scores are not so high, you can still go for the Parent PLUS loans and to be able to do that, you must have a co-signer whose scores are ahead of yours in terms of eligibility for Parent PLUS loans.

Are Navient Parent PLUS Loans Federal?

Yes, Navient loan is still described on their site as a Federal loan even though they are no longer arranging for any Federal loans instead are disposing of private loans.

Navient is nothing but Sally Mae and when Sally Mae divided, the offshore wing for loans was named as Navient.


The Parent PLUS loans are evidentially helping parents help their children as students of undergraduate courses. If you wish to take the loan, check appropriately what suits you better- private loans are also better for those who don’t have a FAFSA or a good credit score.

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