Parent PLUS Loan Calculator
A Parent PLUS loan is repaid at its full face value even though the origination fee is deducted before the money reaches the school — so the payment is based on more than what actually gets disbursed.
$253.35 / month
- Origination fee (withheld upfront)
- $860.00
- Net funds sent to the school
- $19,140
- Total interest
- $10,402
How it works
The origination fee is calculated on the full loan amount and withheld from what's sent to the school, but interest and the monthly payment are calculated on the full amount — the standard fixed-rate amortization formula, same as any installment loan.
Frequently asked questions
Why do I owe more than the school actually receives?
The origination fee — a few percent of the loan — is withheld from each disbursement before it reaches the school, but it doesn't reduce what you owe. You repay and pay interest on the full amount borrowed, not the smaller net amount disbursed.
What credit is required for a Parent PLUS loan?
Unlike most federal student loans, a Parent PLUS loan requires a credit check — approval isn't based on income or a credit score threshold, but an adverse credit history (recent delinquencies, collections, bankruptcy) can disqualify a borrower or require an endorser.
Can a Parent PLUS loan be transferred to the student?
Not directly — it's the parent's legal obligation. Some private lenders offer a refinance that puts the debt in the student's name, but that moves it out of the federal program and its protections entirely.
Is a Parent PLUS loan eligible for income-driven repayment?
Only through consolidation into a Direct Consolidation Loan, and only for a narrower set of income-driven plans than loans borrowed directly by a student. Check current federal guidance, since PLUS eligibility for these plans has changed over time.
Learn more: Student loan types and repayment plans — Subsidized vs. unsubsidized loans, what the grace period and capitalized interest actually do to your balance, standard vs. income-driven repayment, PSLF, and when consolidating a loan helps or hurts.