Reminder: Parent PLUS Loans for Parents of Dependent Students Only

USA Funds^®’ policy advisers remind financial aid professionals that parent PLUS loans may be made only to parents of a dependent student.

Regulations define an eligible parent PLUS borrower as a student’s biological or adoptive mother or father, or the spouse of a parent who is remarried (stepparent), if that spouse’s income and assets were used or would have been used in calculating the student’s Expected Family Contribution. When signing the PLUS Loan Application and Master Promissory Note, the borrower is certifying that the borrower meets this criterion.

A grandparent or other relative is not an eligible parent PLUS loan borrower, and a lender may not make, and a school may not deliver, parent PLUS loan funds to the student’s grandparent or other relative.

For more information about borrower eligibility for parent PLUS loans, contact USA Funds’ policy experts. You will need Adobe Reader to access the Federal PLUS Loan Application and Master Promissory Note noted above.