PLUS Loan

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DEFINITION of 'PLUS Loan'

A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, the parent borrows money on the student's behalf. To be eligible for a PLUS Loan, a student must be enrolled at least part-time, and the parent has to pass a standard credit check.

BREAKING DOWN 'PLUS Loan'

The major benefit of a PLUS Loan is that the parent can borrow the entire amount the student needs for his or her education. This includes housing, tuition and other related expenses. Another notable benefit is that the borrower does not have to demonstrate financial need to be eligible for the loan.

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