State of Connecticut Department of Banking

Parent Loans

What is a "Parent Loan?" | Types of Loans | Repayment Options | Loan Forgiveness/Discharge Options

What is a “Parent Loan?” 

A parent loan is a loan that a biological parent, adoptive parent, stepparent, or (in some cases) legal guardian takes out to help assist their student with educational expenses. The parent is the borrower for these loans.

Most parent loans will require a credit application.

What types of Parent Loans are available? 

Federal

William D. Ford Federal Direct Parent PLUS Loan (PLUS)
Who is eligible to apply?

Biological parents, adoptive parents, or in some cases, the stepparent, of a dependent undergraduate student enrolled at least half-time at an eligible school.

Grandparents (unless they have legally adopted the dependent student) and legal guardians are not eligible to receive PLUS loans, even if they have and/or have had primary responsibility for raising the student.

Additional criteria
What is the interest rate for PLUS loans?

Loans disbursed on or after July 1, 2024 and before July 1, 2025 have a fixed interest of 9.08%.

Private

Eligibility criteria and terms and conditions for private parent loans are dependent on the lender.  We recommend thoroughly reviewing the criteria and terms and conditions with each lender.

What repayment options are available? 

Federal:  

There are four repayment plans available to Parent PLUS borrowers:

  • Standard Repayment 
  • Graduated Repayment 
  • Extended Repayment 
  • Income-Contingent Repayment – Only available by consolidating PLUS loans into a Direct Consolidation Plan. 

To learn more about each of these plans, visit the Loan Repayment Plan page.  

Private:

Private parent loan repayment options are determined by the lender.  Please contact your lender directly for available options.

What Loan Forgiveness/Discharge options are available for Parent Loans? 

Federal:

Public Service Loan Forgiveness (PSLF) 

Parent PLUS borrowers may be eligible to apply for PSLF under certain circumstances: 

  • PLUS loan has been consolidated into a Direct Consolidation Loan 
  • Be in repayment through the Income-Contingent Repayment Plan (only available after consolidation into the Direct Consolidation Loan) 

Additional federal loan forgiveness/discharge options and requirements can be found at Federal Student Aid. 

Private

Private parent loan forgiveness/discharge options are determined by the lender.  Please contact your lender directly for available options.