What is a Parent PLUS Loan ASU? Best Guide

Are you a parent of a college-bound student looking for ways to finance their education? Look no further than the Parent PLUS Loan ASU! This loan program offers affordable and flexible options for parents to help cover the cost of tuition, room, and board, and other educational expenses. 

In this comprehensive guide, we’ll break down everything you need to know about Parent PLUS Loans at Arizona State University (ASU) so you can make an informed decision about your family’s financial future. Let’s dive in!

What is a Parent PLUS Loan?

A Parent PLUS Loan is a federal student loan that is available to the parents of dependent undergraduate students. The parent must be the primary borrower on the loan and must also pass a credit check in order to qualify. The loan amount that a parent can borrow is based on the cost of attendance at the school, minus any other financial aid that the student is receiving.

Parent PLUS Loans can be used to cover the entire cost of attendance, including tuition, room and board, books and supplies, and other miscellaneous expenses. The loans have a fixed interest rate and can be repayment terms of up to 25 years.

How to Apply for a Parent PLUS Loan

Assuming you are the parent of a student attending Arizona State University, here is how you would go about applying for a Parent PLUS Loan:

The first step is to complete a Free Application for Federal Student Aid (FAFSA®) form. You will need your and your child’s social security number, as well as information from your most recent tax returns. The FAFSA form will ask questions about your financial situation, and it is important to answer these questions as accurately as possible.

Once you have completed the FAFSA form, you will receive a Student Aid Report (SAR). The SAR will contain information about your expected family contribution (EFC). The EFC is the amount of money that the government expects you to contribute towards your child’s education.

If you have been selected for verification, you will be required to submit additional documentation, such as tax returns, W-2 forms, and bank statements. Once your verification has been processed, you will receive an award letter from ASU. This award letter will list the types and amounts of aid that you are eligible to receive.

You must request a Parent PLUS Loan by completing a Master Promissory Note (MPN) at studentaid.gov. If you do not already have an account, you must create one. Follow the instructions on how to log in or create an account once you have logged in or created an account.

What are the Interest Rates for Parent PLUS Loans?

The interest rates for Parent PLUS Loans can vary depending on the market and when the loan is taken out. 

For loans taken out between July 1, 2020, and June 30, 2021, the interest rate is a fixed 5.30%. The interest rate for loans taken out prior to July 1, 2020, may be different.

Repayment Plans for Parent PLUS Loans

There are four repayment plans available for Parent PLUS Loans: Standard, Extended, Graduated, and Income-Contingent.

The Standard Repayment Plan requires fixed monthly payments over a ten-year period. The minimum monthly payment is the amount needed to repay the loan in full within ten years.

The Extended Repayment Plan allows borrowers to extend their repayment period to up to 25 years. The minimum monthly payment is lower than on the Standard Plan, but the total interest paid over the life of the loan will be higher.

The Graduated Repayment Plan starts with smaller payments that increase every two years. The repayment period is up to ten years. Because the payments start out small and gradually increase, this plan may work well for borrowers who expect their incomes to increase over time.

The Income-Contingent Repayment Plan bases monthly payments on the borrower’s income and family size. The repayment period is up to 25 years, and any remaining balance on the loan is forgiven after 25 years (if it has not been repaid in full by then). This plan is best for borrowers whose incomes may fluctuate or who are not sure what their future income will be.

Forbearance and Deferment Options for Parent PLUS Loans

If you’re a parent with a Parent PLUS Loan from ASU, you have options for both forbearance and deferment. Here’s what you need to know about each option:


With forbearance, you can temporarily stop making payments on your loan. This can be helpful if you’re having trouble making your monthly payments. To request forbearance, contact your loan servicer.

There are two types of forbearance:

General Forbearance: You can request a general forbearance if you’re experiencing financial hardship or other difficulties that make it hard for you to make your monthly loan payments. General forbearance is granted at the discretion of the loan servicer.

Mandatory Forbearance: You may be eligible for a mandatory forbearance if you meet certain criteria, such as being enrolled in an internship or residency program, or being called to active duty service in the military. Mandatory forbearances are not granted at the discretion of the loan servicer; if you meet the eligibility criteria, your servicer must grant the forbearance.


It’s important to remember that interest continues to accrue on unsubsidized loans during deferment, so it’s best to pay that interest if you can.” Kantrowitz says. Talk to your loan servicer about whether either of these options is right for you to discuss your specific situation.

Pros and Cons of Parent PLUS Loans

When it comes to paying for college, there are a few different loan options available to parents. One option is called a Parent PLUS Loan, which is a federally-backed loan that can be used to cover the cost of tuition and other expenses.

It’s important to remember that interest continues to accrue on unsubsidized loans during deferment, so it’s best to pay that interest if you can.” Kantrowitz explains. To discuss your specific situation and find out what’s best for you, contact your loan servicer about whether either of these options is right for you.

There are some distinct advantages to taking out a Parent PLUS Loan, including the fact that they usually have lower interest rates than private loans and they can be used to cover the entire cost of attendance (including room and board). Additionally, repayment on Parent PLUS Loans can be deferred until after your child graduates or leaves school.

However, there are also some drawbacks to consider before taking out a Parent PLUS Loan. For one, these loans can have high-interest rates depending on the borrower’s credit score – which could mean significant repayments down the road. Additionally, if you take out a Parent PLUS Loan and your child does not ultimately finish school, you will still be responsible for repaying the entire loan amount plus interest.

Ultimately, whether or not a Parent PLUS Loan is right for you will depend on your individual circumstances. If you think this type of loan could help you pay for college, be sure to do your research and compare interest rates before making any final decisions.

Do parent PLUS loans qualify?

In order to qualify for a Parent PLUS loan, you must be the legal parent or guardian of a dependent undergraduate student. You will also need to have a good credit history in order to qualify for this type of loan. 

If you do not have a good credit history, you may still be able to obtain a Parent PLUS loan by finding a cosigner who does have a good credit history.

How to convert a parent PLUS loan to a student?

Assuming you would like a detailed content section for the subheading “How to convert parent PLUS loan to the student?”:

There are a few things that must be done in order to convert a Parent PLUS Loan to a student loan. The first thing that must be done the parent who took out the loan must contact their loan servicer and request to have the PLUS Loan transferred to the student. 

The second thing that needs to happen is the student must then complete and sign a Master Promissory Note (MPN). The MPN is a binding legal document that gives the school permission to disburse funds from your loan and outlines your rights and responsibilities as a borrower.


Parent PLUS Loans are a great way to help your student finance their college education. However, they come with a lot of responsibility and potential risks, so it is important that you understand the terms of the loan before making a decision.

We hope this guide has helped you better understand what a Parent PLUS Loan at ASU entails and how to apply for one. If you have any other questions or need more guidance on selecting the right loan for your child’s needs, we recommend speaking to an expert at the ASU Financial Aid office.

Read also: What Is A Structured Settlement Loan? Best Guide

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