PLUS (Parent Loan for Undergraduate Students) Loans are loans offered to parents of students enrolled full-time at American institutions of higher education. PLUS loans are similar and different from Perkins and Stafford loans in various respects:
Similarities with Stafford and Perkins Loans:
* Offered under Title IV of the Higher Education Act of 1965 (with subsequent amendments), and are therefore backed by the full faith of the United States Government
* Available both through the Federal Direct Student Loan Program) (FDSLP, also known as Direct) or from a private lender through the Federal Family Education Loan Program (FFELP)
* Can be consolidated through the College Consolidation Loan program
Differences from Stafford and Perkins Loans:
* Become due for repayment immediately, and there is only interest rate term
* Are a commitment by the parent, rather than the student
* Are subject to higher interest rates
* Can be incurred in amounts that cover up the entire cost of education, less other financial aid
* Offer different repayment plans, though there is no interest rate or accrual relief involved in any of the plans
* Eligibility is based on the parents' not having an adverse credit history