Parent PLUS Calculator
Enter your student loan details to calculate payments and total cost.
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About Parent PLUS Loan Calculator
Calculate Parent PLUS loan payments and total cost. Compare to other education financing options.
Understanding Parent PLUS
Key factors in managing student loans:
- Federal loans offer protections like income-driven repayment and forgiveness programs
- Interest rates and repayment terms significantly impact total cost
- Making extra payments reduces interest and shortens payoff time
- Refinancing may lower rates but eliminates federal protections
Repayment Strategies
- Standard 10-year plan minimizes total interest paid
- Income-driven plans base payments on earnings (IBR, PAYE, REPAYE)
- Refinancing makes sense if you have good credit and don't need federal benefits
- Consider loan forgiveness programs if working in public service or teaching
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Frequently Asked Questions
How is a Parent PLUS loan payment calculated?
Monthly payment uses the standard amortization formula: M = P × r × (1+r)^n / ((1+r)^n − 1). For a $40,000 Parent PLUS balance at 8.94% (the AY2025–26 federal rate per Dept of Ed May 2025 announcement) over the 10-year standard term, the monthly payment is about $505. Parents can also enroll in extended or income-contingent repayment (after consolidating into a Direct Consolidation Loan) to lower the monthly payment, but doing so increases total interest paid.
What is the Parent PLUS interest rate for 2025–26?
The Parent PLUS rate uses the same statutory formula as Grad PLUS: 10-year Treasury note high yield plus 4.60%, capped at 10.50%, set annually by the Department of Education. For loans first disbursed July 1, 2025 through June 30, 2026 the rate is 8.94% fixed (10-yr T-Note May 2025 high yield 4.34% + 4.60% = 8.94%). The prior cycle (AY 2024-25) was 9.08% (May 2024 4.48% + 4.60%). Rates are locked at disbursement; new loans in subsequent years use the rate effective at their disbursement date.
Is there an origination fee on Parent PLUS loans?
Yes — 4.228% of the disbursed amount per HEA § 455(c) for loans disbursed on or after October 1, 2020. On a $40,000 Parent PLUS loan the fee is approximately $1,691, so the student's school receives $38,309 while the parent owes $40,000 plus interest. This calculator does not model the origination fee; the true cost is modestly higher than the displayed total.
When does Parent PLUS repayment begin?
Repayment on a Parent PLUS loan begins immediately after the final disbursement unless the parent borrower specifically requests a deferment. Common deferment options include while the student is enrolled at least half-time and for six months after the student graduates or drops below half-time enrollment. Interest accrues during any deferment and is capitalized at the end, increasing the principal balance.
Can Parent PLUS loans qualify for forgiveness or income-driven repayment?
Parent PLUS loans are not directly eligible for most income-driven repayment plans. The workaround is to consolidate a Parent PLUS loan into a Direct Consolidation Loan, which then qualifies for Income-Contingent Repayment (ICR), the only IDR plan available to consolidated Parent PLUS borrowers. Public Service Loan Forgiveness is available through this path as well, provided the parent works full-time for a qualifying employer for 120 qualifying payments.