Federal Parent Plus Loan

Federal PLUS loans are available to the parents or stepparents of dependent undergraduate students as well as graduate students. These credit-based loans require the student to be eligible for Federal Student Aid (most domestic students), and students must file a FAFSA in order to qualify for a PLUS loan.

Interest is charged on Direct Parent PLUS loans during all periods, beginning on the date of the loan’s first disbursement. There is no annual limit to the amount that can be borrowed through the Parent PLUS loan program. In general, parents may borrow the difference between the cost of the student’s education and any other financial aid received. PLUS loans may also be used to pay for all or part of the expected family contribution. In addition to the interest, parents pay a loan fee.

PLUS loans are also subject to a loan fee, which is a percentage of the loan amount. Loans are assigned a fee percentage based on the date their first disbursement is made.

Borrowing Limit for Parent PLUS Loans

New borrowers (parents who did not have a Parent PLUS Loan disbursed prior to July 1, 2026): The combined annual borrowing limit for all parents is $20,000 per year per dependent student, with a $65,000 lifetime aggregate limit per dependent student. These limits apply to all parents combined — if two parents borrow for the same student, their combined borrowing may not exceed these caps.

Legacy borrowers (parents who had a Parent PLUS Loan disbursed prior to July 1, 2026, for a student enrolled in the same program): You may continue borrowing up to the cost of attendance minus other aid for up to three academic years or the remainder of the student's expected time to credential, whichever is less. The student must remain continuously enrolled in the same program to retain legacy eligibility.

Graduate PLUS Loans

New borrowers: Graduate PLUS Loans are not available to students who did not have a federal Direct Loan disbursed prior to July 1, 2026.

Legacy borrowers (students who had a federal Direct Loan disbursed prior to July 1, 2026, and remain continuously enrolled in the same program): You may continue borrowing Graduate PLUS Loans up to the cost of attendance minus other aid for up to three additional academic years or until program completion, whichever comes first.

Enrollment of Less Than a Full Academic Year

PLUS Loans are prorated for undergraduate students if their final period of study is less than a full academic year, such as attending only one term and graduating.

Less Than Full-Time Enrollment

Beginning with the 2026-27 award year, annual loan amounts for all borrowers are also prorated based on enrollment intensity. Students or parents borrowing for a student enrolled less than full-time will receive a reduced annual loan amount calculated in direct proportion to the student's credit load relative to full-time enrollment. Further guidance from the Department of Education on proration calculations is expected; this page will be updated as details are finalized.

Subsidies

Interest will accrue on PLUS Loans at all times, though interest will not need to be paid until the loan enters repayment.

Repayment

Parents

PLUS Loans will enter repayment 60 days after the loan is fully disbursed. Parents may request a deferment from their loan servicer while their student is enrolled at least half-time and for up to six months afterward.

Repayment plan options differ based on when the loan was first disbursed:

Parent PLUS Loans first disbursed on or after July 1, 2026: New Parent PLUS Loans must be repaid under the standard repayment plan. They are not eligible for the Repayment Assistance Plan (RAP) or any income-driven repayment option.

Parent PLUS Loans first disbursed before July 1, 2026: Existing repayment plan options continue to apply. Please visit studentaid.gov for information on repayment plan transitions.

Graduate Students

Graduate PLUS Loans will be placed into deferment until six months after a student stops attending school at least half-time. Once the deferment period ends, the loan will enter repayment.

Federal Direct Loans with a first disbursement date on or after July 1, 2026 are eligible for only two repayment plans: a restructured Standard Repayment Plan with a repayment period ranging from 10 to 25 years, or the new income-driven Repayment Assistance Plan (RAP) with a 30-year repayment period. Graduate PLUS Loans borrowed under the legacy provision follow these same repayment plan rules for any disbursements made on or after July 1, 2026.

The Federal Student Aid Ombudsman works with student loan borrowers to informally resolve loan disputes and problems. The office of the ombudsman helps borrowers having problems with the following federal loans: direct loans (subsidized and unsubsidized Direct Stafford Loans, Direct PLUS loans, and Direct Consolidation Loans); Federal Family Education Loans (subsidized and unsubsidized Stafford Loans, FFEL PLUS loans, and FFEL Consolidation Loans); guaranteed student loans, SLS loans, and Federal Perkins Loans. If a student needs the assistance of the ombudsman in order to resolve disputes or problems, they may contact the office at U.S. Department of Education at studentaid.gov/feedback-ombudsman/disputes/prepare to submit a complaint.

Generally, no interest is charged and no repayment of principal is required while a student maintains a continuous course of study at Caltech. Repayment on Caltech loans begins nine months after graduation, leaving school, or less than half-time enrollment. Caltech loans may carry up to an annual interest rate of 5%. More specific information is provided on the promissory note and the disclosure statement provided to students prior to disbursement of the loan.

Other short term and emergency resources may be available to students regardless of their eligibility for financial aid. These loans are usually payable within the same academic year and are administered by the dean of students on a case-by-case basis. Additional information and applications may be obtained from the dean of students’ office deans.caltech.edu/Grants_Funding/short-term-and-emergency-resources.

The Dean’s Office also has a no-interest, 30-day emergency-loan program for students who need funds on a short time basis. The loans are ordinarily limited to $500 but there is some flexibility with regard to this limit. Additional information and applications may be obtained from the Dean’s Office https://deans.caltech.edu/awards_funding/short-term-and-emergency-resources.

A private education loan is a student loan issued by a private financial institution.  Since they are not originated by the Department of Education, private loans will not be subsidized by the federal government. Additionally, private loans will not have the same features as their federal counterparts, so interest rates and repayment options will vary.

If you are considering a private education loan, make sure you:

• Look for ways to reduce your expenses before you decide how much to borrow.
• Borrow only what you absolutely need.
• Ask questions and compare the rates and terms offered by different lenders.
• Feel free to use our lender-neutral platform to compare which student loan best meets your needs.

Note: The amount of your private loan will be disbursed in three equal payments, one per term.