. Parent PLUS loans are federal loans, the easiest loans you will ever get, and one of most expensive, to pay for a student's college. They aren't for everyone.
Here is a decision tree:
1 Do you have adverse credit history in the last 5 years? (90+ day delinquencies, default, bankruptcy, foreclosure, tax lien, student-loan default, etc.)
YES. Apply anyway. You'll likely be denied, but student gets extra $4'5k/year unsubsidized (no cosigner). Stop here, do not borrow plus.
NO. Go to #2
2 Is the interest rate on private loans (with you as cosigner) lower than 8.05% fixed? (Check SoFi, Earnest, College Ave, good credit often gets 4'7% fixed in 2025)
YES. Take the private loan instead (better rate + possible cosigner release).
NO. Go to #3
3 Do you (the parent) work for a government or 501(c)(3) nonprofit and plan to stay 10+ years?
YES. Parent PLUS qualifies for Public Service Loan Forgiveness Borrow PLUS + switch to SAVE plan. Likely $0 payments and full forgiveness in 10 years. Green Light.
NO. Go to #4
4 Can the family cash-flow the gap without borrowing, or with only the student's $5,500, $7,500 Direct loans? (529, savings, part-time job, cheaper school, community college first, etc.)
YES. Skip PLUS completely.
NO. Go to #5
5 Will borrowing PLUS push your total debt payments (mortgage + PLUS + other loans) above 30'35% of monthly income?
YES. Red light, do not borrow. Get denied on purpose or choose a lower-cost school.
NO. PLUS is an option, but still the most expensive federal choice. Consider it only as a last resort.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
