FEDERAL DIRECT PARENT PLUS LOAN

Offered to the parents of dependent students, this loan allows parents to borrow money to help pay for their student’s college costs. Interest rates are fixed at 8.94% for loans disbursed on or after July 1, 2025. Parents must complete a separate loan application, which includes a credit check. Interest accrues while the student is in school, and repayment begins after the loan has been fully disbursed. Parents may defer repayment while the student is in school, but they must contact their loan servicer to request a deferment once the loan enters repayment.

NEW FOR 2026–27
For new parent borrowers, the Federal Direct Parent PLUS Loan will have new annual and aggregate limits. Parents may borrow up to $20,000 per year per dependent student, with a lifetime maximum of $65,000 per student.

Legacy provision: Parents who borrowed a Direct PLUS Loan for their student before July 1, 2026, or whose student borrowed a Direct Subsidized or Unsubsidized Loan before that date, may continue borrowing up to the student’s remaining cost of attendance for the rest of the student’s program.

ALTERNATIVE STUDENT LOAN

A loan designed to help students meet their college costs after all other types of aid have been awarded. Several lenders offer students the opportunity to borrow loan funds; however, a credit-worthy co-signer is usually required. Cosigners can be parents, relatives, family friends, etc. The lender determines the interest rate. Students can apply for a fixed or variable interest rate when completing the loan application. Interest will begin accruing at the time of disbursement. Students can choose to begin repayment after graduation or immediately. 

NELNET MONTHLY PAYMENT PLAN

A tuition payment plan is offered to U.S. citizens or permanent residents who would like to finance their education throughout the academic year. The student's remaining annual balance is divided into 10 monthly payments (5 payments per term) over the academic year. Payments are due on the 15th of each month, starting in July and ending in April. There is a $95 annual set-up fee that is due upon enrolling in the monthly payment plan. Click here to learn more.

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