About the Parent PLUS Loan Calculator
This Parent PLUS loan calculator estimates what a federal Direct PLUS Loan for parents will really cost. Enter the amount you borrow, the interest rate, how long you defer payments and the repayment term to see the monthly payment, the origination fee taken out of each disbursement, the interest that capitalizes and the total you will repay.
Parent PLUS loans carry a fixed rate set each year — 9.07% for loans first disbursed between July 1, 2026 and June 30, 2027 (8.94% for 2025-26) — plus a 4.228% origination fee (for loans first disbursed before October 1, 2027) deducted before the money reaches the school. New Parent PLUS borrowing from July 1, 2026 is capped at $20,000 a year and $65,000 in total per dependent student. Because of the fee, the school receives less than you borrow; the calculator also shows how much to borrow if you need a specific net amount.
Repayment normally starts once the loan is fully disbursed, but parents can ask to defer while the student is enrolled at least half-time and for six months after. Interest accrues during deferment and is added to the balance when repayment begins. The payment is a level fixed payment over the term you choose. For loans made before July 1, 2026 that means the 10-year standard plan or the extended plan (up to 25 years with more than $30,000 of Direct Loans); Parent PLUS loans first disbursed on or after July 1, 2026 instead use a standard plan whose term depends on your total federal loan principal when you enter repayment: 10 years under $25,000, 15 years from $25,000, 20 years from $50,000 and 25 years from $100,000.
With the default inputs, the monthly payment is $381.16. Change any value above to recalculate instantly.
How to use the parent plus loan calculator
- 1Enter the amount you plan to borrow for the year (or the total across years).
- 2Check the interest rate and fee for the year the loan is disbursed.
- 3Enter how many months you will defer payments, or 0 to start right away.
- 4Choose the standard 10-year or an extended repayment plan.
- 5Review the payment, fee and total cost, and compare with the student’s own loans.
Formula and method
The origination fee is a percentage of the loan and is deducted from each disbursement, so the school receives L × (1 − f) while you owe the full L. To receive a set amount after the fee, divide it by (1 − f).
If you defer repayment, simple interest accrues on the loan at L × r ÷ 12 per month and is capitalized — added to the principal — when repayment begins. The monthly payment then follows the standard fixed-payment amortization formula over the chosen plan, with i = r ÷ 12 and n = years × 12. The calculator treats the loan as a single disbursement; in practice each year’s loan has its own rate and fee.
- L
- Amount borrowed
- f
- Origination fee as a decimal (0.04228)
- r
- Annual interest rate
- d
- Months of deferment
- i
- Monthly interest rate
- n
- Number of monthly payments
Worked examples
$30,000 at 9.07%, repaid over 10 years
The 4.228% fee is $1,268.40, so the school receives $28,731.60. Repaying $30,000 at the 2026-27 rate of 9.07% over 10 years costs about $381 a month and roughly $15,740 in interest. To net the full $30,000 you would need to borrow about $31,324.
$30,000 on the post-July 2026 standard plan (15 years)
A new Parent PLUS loan with $30,000 of total federal principal falls in the $25,000–$49,999 tier, so the standard plan runs 15 years: about $305.53 a month and $24,995 of interest — $76 a month less than 10 years but about $9,256 more interest.
Deferring 54 months, then 25-year plan
Deferring for 4.5 years adds $12,244.50 of interest ($226.75 a month) to the balance, making it $42,244.50. Spread over 25 years the payment is about $357, but you repay about $106,962 in total.
Frequently asked questions
What is the Parent PLUS loan interest rate?+
For loans first disbursed from July 1, 2026 to June 30, 2027 the fixed rate is 9.07% (8.94% for 2025-26). The rate is reset each July 1 from the May 10-year Treasury auction plus 4.6 percentage points, and each loan keeps its rate for life.
What is the Parent PLUS origination fee?+
The fee is 4.228% of the loan for loans first disbursed from October 1, 2020 through September 30, 2027 (the FY2027 sequester fee is unchanged). It is deducted from each disbursement, so the school receives less than the amount you borrow.
When do Parent PLUS loan payments start?+
Repayment begins once the loan is fully disbursed, with the first payment due within 60 days. Parents can request deferment while the student is enrolled at least half-time and for six months afterwards, but interest keeps accruing.
Are there limits on Parent PLUS borrowing?+
Historically parents could borrow up to the cost of attendance minus other aid. Under the 2025 budget law (Public Law 119-21), Parent PLUS loans from July 1, 2026 are capped at $20,000 per year and $65,000 in total per dependent student, across all parents; students already borrowing may keep the old limits for a limited transition period.
Can Parent PLUS loans be forgiven?+
Parent PLUS loans can qualify for Public Service Loan Forgiveness only after consolidation into a Direct Consolidation Loan and repayment under an eligible plan. Parent PLUS loans made on or after July 1, 2026 can use only the standard plan, and access to income-driven plans for older parent loans has been narrowed, so check your servicer for your loan dates.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.