Parent PLUS Calculator
Last updated July 2, 2026
Parent PLUS Loans are federal loans in the parent's name — not the student's — that allow families to borrow up to the full cost of attendance minus any other financial aid. For loans disbursed starting July 1, 2026, the PLUS loan interest rate is 9.07 percent, the highest among federal loan categories. Unlike direct subsidized and unsubsidized loans, there is no lifetime borrowing cap for PLUS loans other than the cost of attendance limit, which makes it easy for families to borrow far more than they can realistically repay. A parent who borrows $45,000 per year over four years takes on $180,000 in Parent PLUS debt at 9.07 percent — a monthly payment of about $2,287 on a 10-year standard plan, potentially during the years approaching or coinciding with retirement.
Parent PLUS Loans don't transfer to the student after graduation, remain the parent's legal obligation, and are not dischargeable in bankruptcy under most circumstances. Income-driven repayment options for PLUS loans are more limited than for direct student loans; ICR is the primary option, and it caps payments at 20 percent of discretionary income over a 25-year term. The financial planning implication is significant: parents who fund college with PLUS loans often sacrifice retirement contributions during the repayment period, compounding the long-term financial impact. Financial advisors consistently recommend a clear principle — don't borrow more in Parent PLUS loans than you can repay in 10 years on your retirement timeline, and never prioritize a child's college choice over your own retirement security.
Parent PLUS Loans carry the highest interest rate in the federal loan system and have no borrowing cap beyond cost of attendance. Before signing, calculate the monthly payment at 9.07 percent on the projected four-year total, determine whether that payment is manageable alongside retirement savings, and ask whether a less expensive school or additional institutional aid might eliminate the need for PLUS borrowing entirely.