Borrowing, limits and rates · calculator
Parent PLUS loan calculator
Parents who borrow the new maximum of $20,000 a year in parent PLUS loans for four years reach $65,000, just under the $65,000 cap per student, and owe about $588 a month over 20 years at the 2026-27 rate of 9.07%. Before July 1, 2026 there was no fixed ceiling: parents could borrow up to the cost of attendance minus other aid. The 2025 law replaced that with an annual limit of $20,000 for all parents of one dependent student together, an aggregate limit of $65,000 that counts every dollar ever borrowed for that student, even if repaid, and one repayment path for new loans: the Tiered Standard plan, with its term set by the balance. The Repayment Assistance Plan is not open to parent PLUS loans, and neither is IBR unless an older loan goes through a consolidation route that closes in 2028. This calculator shows how much of your plan fits under the caps and what the monthly bill becomes.
Total parent PLUS you could borrow
$60,000
$543 a month on Tiered Standard (20 years)
| Borrowed each year after the cap | $15,000 |
| Room left under the per-student total | $65,000 |
| Interest over the Tiered Standard term | $70,210 |
| Payment on a 10-year schedule | $762 |
A parent PLUS loan made on or after July 1, 2026 is repaid on the Tiered Standard plan; RAP is not open to it. Loan fees and interest accrued before repayment are not included. How this is calculated.
How much parents can still borrow for a dependent undergraduate after July 1, 2026, and what repayment will look like.
Checked by Radif Partners · Editorial policy · How we calculate
Payments for typical borrowing plans
| Parent PLUS borrowed | Tiered Standard term | Monthly payment | On a 10-year schedule |
|---|---|---|---|
| $20,000 | 10 years | $254 | $254 |
| $40,000 | 15 years | $407 | $508 |
| $65,000 | 20 years | $588 | $826 |
| $65,000 | 20 years | $588 | $826 |
Interest before the first payment
Repayment of a parent PLUS loan normally begins once the loan is fully disbursed, but parents may ask to defer payments while the student is enrolled at least half time and for six months after. Interest runs either way. A single year's $20,000 loan accrues about $151 of interest a month at 9.07%, so four years of deferral on the first-year loan alone add several thousand dollars to the balance that then sets the Tiered Standard term. Paying the interest as it accrues keeps the term, and the total cost, down.
The gap the caps leave
For families at expensive colleges, $20,000 a year will not close the distance between aid and cost. The options left are the student's own Direct Loans, $5,500 in the first year for a dependent student, or $9,500 if the parent is denied a PLUS loan; savings, including 529 plans; institutional aid; and private loans, which do not carry federal protections. The Department's July 2026 fact sheet presents the caps as a way to push colleges to lower costs (Department of Education, July 1, 2026). The net price page helps measure the gap before committing.
Two children, one household
The cap is per student, so parents of two can borrow up to $130,000 over time. Combined, that balance would fall in the 25-year tier with a payment of about $1,097. Because the Tiered Standard term depends on the total principal of all your Direct Loans when you enter repayment, borrowing for a second child can move you into a longer tier and lower the monthly payment, at the cost of more interest overall. A parent close to retirement should weigh that horizon carefully.
Credit check and the endorser route
Parent PLUS is the only Direct Loan with a credit check: a parent with an adverse credit history can be denied, can apply with an endorser, or can document extenuating circumstances. A denial has a useful side effect for the student, who then becomes eligible for the higher unsubsidized amounts of an independent undergraduate, $9,500 instead of $5,500 in the first year. The regulation is explicit that a parent's refusal to borrow does not trigger that extra eligibility; only a parent's inability does.
Repaying a parent PLUS loan
New parent PLUS loans are excepted loans: they must be repaid on the Tiered Standard plan, separately from any loans the parent took for their own education (HEA section 455(d)(7)(E)). Prepaying is allowed at any time without penalty. For older loans and the consolidation route to an income-driven plan, read parent PLUS repayment options.