Parent PLUS Loan Calculator 2026
Calculate Parent PLUS loan monthly payments and total cost. 2026 federal rate: 9.08%. Compare all repayment plan options.
Parent PLUS Loan Repayment Strategy
At 9.08%, Parent PLUS loans are expensive. Key strategies to reduce total cost:
- Pay during school: Interest accrues immediately, even while the student is enrolled. Making interest-only payments during the 4 years of college can save thousands.
- Refinance privately: Parents with excellent credit can refinance to 5-7%, cutting total interest by 30-40%. Trade-off: lose federal protections.
- PSLF after consolidation: If you work in public service, consolidate to a Direct Loan and enroll in ICR. 10 years of payments = full forgiveness, tax-free.
- Payroll Taxes Guide
- Overtime Rules
- Tax Withholding Guide
Frequently Asked Questions
The Parent PLUS loan interest rate for loans disbursed in the 2025-2026 academic year is 9.08% — fixed for the life of the loan. This is one of the highest rates in the federal student loan program. The origination fee is 4.228% deducted from each disbursement.
Parent PLUS loans qualify for Standard (10-year), Graduated, and Extended Repayment (up to 25 years). They do NOT directly qualify for income-driven repayment (IDR) plans — but if consolidated into a Direct Consolidation Loan, they can access Income-Contingent Repayment (ICR), which caps payments at 20% of discretionary income.
Federal Parent PLUS loans cannot be transferred to the student through the federal system. However, some private lenders (SoFi, Earnest, etc.) allow the student to refinance Parent PLUS loans in their own name. Note: refinancing to private forfeits all federal protections including deferment and Public Service Loan Forgiveness eligibility.
There is no annual maximum — you can borrow up to the full cost of attendance minus any other financial aid the student receives. The cost of attendance is set by the school and includes tuition, fees, room and board, books, and personal expenses.