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If a dependent student’s parents are divorced, both parents can take out separate Parent PLUS Loans with separate Master Promissory Notes (MPNs).But the combined Parent PLUS Loans cannot exceed the loan limits.
However, borrowers can defer repayment of a Parent PLUS Loan first disbursed on or after July 1, 2008, while the student is in school and during a six-month grace period after the student graduates or drops below half-time enrollment status.
One such option, the Parent PLUS loan, is one that truly stands out from the pack.
Unlike other Direct PLUS loans, Parent PLUS loans extend a line of credit directly to the parent, not the student.
The interest rate for the 2017-2018 academic year is 7.0%.
Every year on July 1, interest rates are reset based on current market rates.