PLUS vs. Private Loans
Federal student loans, such as the Federal Direct Loan and the Parent PLUS Loan, generally have more favorable terms and conditions than private loans. We recommend using all federal loan eligibility before turning to private loans.
The Direct Parent PLUS loan is a federal loan available to the parents of dependent undergraduate students. The Direct Parent PLUS Loan offers flexible loan limits and a fixed 7.54% interest rate for the 2022-23 (new rates not yet determined) school year. Eligibility is determined by the applicants credit history.
Private alternative loans are managed through private lenders, issued in the student’s name, and require a co-signer. Eligibility, rates, terms, and conditions vary.
Loan applications for Fall/Spring will be available at studentloans.gov on July 1.
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