Transparent method
The formula
Worked example
Example inputs
How to interpret the result
A Parent PLUS loan costs more than its rate suggests because of an origination fee taken up front. Borrowing $40,000 at 8.5 percent over ten years costs about $496 a month, and a 4.2 percent fee is $1,680 taken from the proceeds. The interest and fee together come to about $21,193. Because the fee comes off the amount received, the true cost is a little above the stated rate, and the parent, not the student, owes the debt.
Before you rely on it
What to check
Look at the current rate and fee on the official site, since both change each year. Compare the total with what the student could borrow in their own name.
The common error
Where people go wrong with parent PLUS loan calculator
Borrowing the full cost without thinking about the parent's retirement. The payments come from the parent's income, and a smaller loan or a cheaper school may be the better answer.
Sensitivity evidence
How annual interest rate changes the estimated monthly payment
| Annual interest rate | Estimated monthly payment | Estimated total interest and fee | Estimated origination fee |
|---|---|---|---|
| 4.5% | $415 | $11,426 | $1,680 |
| 6.5% | $454 | $16,183 | $1,680 |
| 8.5%worked example | $496 | $21,193 | $1,680 |
| 10.5% | $540 | $26,449 | $1,680 |
| 12.5% | $586 | $31,941 | $1,680 |
Every input, tested
Which input moves the estimated monthly payment most
| Input | Tested from | To | Estimated monthly payment at each end | Swing |
|---|---|---|---|---|
| Repayment term | 7.0 years | 13.0 years | $633 to $424 | $209 (42%) |
| Parent PLUS amount borrowed | $36,000 | $44,000 | $446 to $546 | $99 (20%) |
| Annual interest rate | 6.5% | 10.5% | $454 to $540 | $86 (17%) |
| Origination-fee rate | 3.2% | 5.2% | $496 to $496 | none |
Two variables at once
Estimated monthly payment by annual interest rate and parent PLUS amount borrowed
| Annual interest rate \ Parent PLUS amount borrowed | $32,000 | $40,000 | $48,000 |
|---|---|---|---|
| 4.5% | $332 | $415 | $497 |
| 6.5% | $363 | $454 | $545 |
| 8.5% | $397 | $496 | $595 |
| 10.5% | $432 | $540 | $648 |
| 12.5% | $468 | $586 | $703 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Parent PLUS amount borrowed | $40,000 |
| Annual interest rate | 8.5% |
| Repayment term | 10.0 years |
| Origination-fee rate | 4.2% |
| Estimated monthly payment | $496 |
| Estimated total interest and fee | $21,193 |
| Estimated origination fee | $1,680 |
Complete evidence
Full amortization schedule
Show all 120 rows
| Payment | Opening balance | Principal | Interest | Ending balance |
|---|---|---|---|---|
| Payment 1 | $40,000 | $213 | $283 | $39,787 |
| Payment 2 | $39,787 | $214 | $282 | $39,573 |
| Payment 3 | $39,573 | $216 | $280 | $39,358 |
| Payment 4 | $39,358 | $217 | $279 | $39,140 |
| Payment 5 | $39,140 | $219 | $277 | $38,922 |
| Payment 6 | $38,922 | $220 | $276 | $38,702 |
| Payment 7 | $38,702 | $222 | $274 | $38,480 |
| Payment 8 | $38,480 | $223 | $273 | $38,256 |
| Payment 9 | $38,256 | $225 | $271 | $38,031 |
| Payment 10 | $38,031 | $227 | $269 | $37,805 |
| Payment 11 | $37,805 | $228 | $268 | $37,577 |
| Payment 12 | $37,577 | $230 | $266 | $37,347 |
| Payment 13 | $37,347 | $231 | $265 | $37,116 |
| Payment 14 | $37,116 | $233 | $263 | $36,882 |
| Payment 15 | $36,882 | $235 | $261 | $36,648 |
| Payment 16 | $36,648 | $236 | $260 | $36,411 |
| Payment 17 | $36,411 | $238 | $258 | $36,173 |
| Payment 18 | $36,173 | $240 | $256 | $35,934 |
| Payment 19 | $35,934 | $241 | $255 | $35,692 |
| Payment 20 | $35,692 | $243 | $253 | $35,449 |
| Payment 21 | $35,449 | $245 | $251 | $35,204 |
| Payment 22 | $35,204 | $247 | $249 | $34,958 |
| Payment 23 | $34,958 | $248 | $248 | $34,709 |
| Payment 24 | $34,709 | $250 | $246 | $34,459 |
| Payment 25 | $34,459 | $252 | $244 | $34,207 |
| Payment 26 | $34,207 | $254 | $242 | $33,954 |
| Payment 27 | $33,954 | $255 | $241 | $33,698 |
| Payment 28 | $33,698 | $257 | $239 | $33,441 |
| Payment 29 | $33,441 | $259 | $237 | $33,182 |
| Payment 30 | $33,182 | $261 | $235 | $32,921 |
| Payment 31 | $32,921 | $263 | $233 | $32,658 |
| Payment 32 | $32,658 | $265 | $231 | $32,394 |
| Payment 33 | $32,394 | $266 | $229 | $32,127 |
| Payment 34 | $32,127 | $268 | $228 | $31,859 |
| Payment 35 | $31,859 | $270 | $226 | $31,589 |
| Payment 36 | $31,589 | $272 | $224 | $31,316 |
| Payment 37 | $31,316 | $274 | $222 | $31,042 |
| Payment 38 | $31,042 | $276 | $220 | $30,766 |
| Payment 39 | $30,766 | $278 | $218 | $30,488 |
| Payment 40 | $30,488 | $280 | $216 | $30,208 |
| Payment 41 | $30,208 | $282 | $214 | $29,926 |
| Payment 42 | $29,926 | $284 | $212 | $29,642 |
| Payment 43 | $29,642 | $286 | $210 | $29,356 |
| Payment 44 | $29,356 | $288 | $208 | $29,068 |
| Payment 45 | $29,068 | $290 | $206 | $28,778 |
| Payment 46 | $28,778 | $292 | $204 | $28,486 |
| Payment 47 | $28,486 | $294 | $202 | $28,192 |
| Payment 48 | $28,192 | $296 | $200 | $27,896 |
| Payment 49 | $27,896 | $298 | $198 | $27,597 |
| Payment 50 | $27,597 | $300 | $195 | $27,297 |
| Payment 51 | $27,297 | $303 | $193 | $26,994 |
| Payment 52 | $26,994 | $305 | $191 | $26,690 |
| Payment 53 | $26,690 | $307 | $189 | $26,383 |
| Payment 54 | $26,383 | $309 | $187 | $26,074 |
| Payment 55 | $26,074 | $311 | $185 | $25,762 |
| Payment 56 | $25,762 | $313 | $182 | $25,449 |
| Payment 57 | $25,449 | $316 | $180 | $25,133 |
| Payment 58 | $25,133 | $318 | $178 | $24,815 |
| Payment 59 | $24,815 | $320 | $176 | $24,495 |
| Payment 60 | $24,495 | $322 | $174 | $24,173 |
| Payment 61 | $24,173 | $325 | $171 | $23,848 |
| Payment 62 | $23,848 | $327 | $169 | $23,521 |
| Payment 63 | $23,521 | $329 | $167 | $23,192 |
| Payment 64 | $23,192 | $332 | $164 | $22,860 |
| Payment 65 | $22,860 | $334 | $162 | $22,526 |
| Payment 66 | $22,526 | $336 | $160 | $22,190 |
| Payment 67 | $22,190 | $339 | $157 | $21,851 |
| Payment 68 | $21,851 | $341 | $155 | $21,510 |
| Payment 69 | $21,510 | $344 | $152 | $21,166 |
| Payment 70 | $21,166 | $346 | $150 | $20,820 |
| Payment 71 | $20,820 | $348 | $147 | $20,472 |
| Payment 72 | $20,472 | $351 | $145 | $20,121 |
| Payment 73 | $20,121 | $353 | $143 | $19,767 |
| Payment 74 | $19,767 | $356 | $140 | $19,411 |
| Payment 75 | $19,411 | $358 | $137 | $19,053 |
| Payment 76 | $19,053 | $361 | $135 | $18,692 |
| Payment 77 | $18,692 | $364 | $132 | $18,328 |
| Payment 78 | $18,328 | $366 | $130 | $17,962 |
| Payment 79 | $17,962 | $369 | $127 | $17,594 |
| Payment 80 | $17,594 | $371 | $125 | $17,222 |
| Payment 81 | $17,222 | $374 | $122 | $16,848 |
| Payment 82 | $16,848 | $377 | $119 | $16,472 |
| Payment 83 | $16,472 | $379 | $117 | $16,092 |
| Payment 84 | $16,092 | $382 | $114 | $15,711 |
| Payment 85 | $15,711 | $385 | $111 | $15,326 |
| Payment 86 | $15,326 | $387 | $109 | $14,938 |
| Payment 87 | $14,938 | $390 | $106 | $14,548 |
| Payment 88 | $14,548 | $393 | $103 | $14,155 |
| Payment 89 | $14,155 | $396 | $100 | $13,760 |
| Payment 90 | $13,760 | $398 | $97 | $13,361 |
| Payment 91 | $13,361 | $401 | $95 | $12,960 |
| Payment 92 | $12,960 | $404 | $92 | $12,556 |
| Payment 93 | $12,556 | $407 | $89 | $12,149 |
| Payment 94 | $12,149 | $410 | $86 | $11,739 |
| Payment 95 | $11,739 | $413 | $83 | $11,326 |
| Payment 96 | $11,326 | $416 | $80 | $10,910 |
| Payment 97 | $10,910 | $419 | $77 | $10,492 |
| Payment 98 | $10,492 | $422 | $74 | $10,070 |
| Payment 99 | $10,070 | $425 | $71 | $9,646 |
| Payment 100 | $9,646 | $428 | $68 | $9,218 |
| Payment 101 | $9,218 | $431 | $65 | $8,787 |
| Payment 102 | $8,787 | $434 | $62 | $8,354 |
| Payment 103 | $8,354 | $437 | $59 | $7,917 |
| Payment 104 | $7,917 | $440 | $56 | $7,477 |
| Payment 105 | $7,477 | $443 | $53 | $7,034 |
| Payment 106 | $7,034 | $446 | $50 | $6,588 |
| Payment 107 | $6,588 | $449 | $47 | $6,139 |
| Payment 108 | $6,139 | $452 | $43 | $5,686 |
| Payment 109 | $5,686 | $456 | $40 | $5,230 |
| Payment 110 | $5,230 | $459 | $37 | $4,772 |
| Payment 111 | $4,772 | $462 | $34 | $4,309 |
| Payment 112 | $4,309 | $465 | $31 | $3,844 |
| Payment 113 | $3,844 | $469 | $27 | $3,375 |
| Payment 114 | $3,375 | $472 | $24 | $2,903 |
| Payment 115 | $2,903 | $475 | $21 | $2,428 |
| Payment 116 | $2,428 | $479 | $17 | $1,949 |
| Payment 117 | $1,949 | $482 | $14 | $1,467 |
| Payment 118 | $1,467 | $486 | $10 | $981 |
| Payment 119 | $981 | $489 | $6.95 | $492 |
| Payment 120 | $492 | $492 | $3.49 | $0.00 |
Where the inputs come from
Amount borrowed is the total the parent borrows for the student, annual interest rate is the fixed rate for the year the loan is first disbursed, repayment term is ten years on the standard plan, and the origination fee is a percentage taken from each disbursement, currently above 4%. The rate and fee are set annually by the Department of Education. The fee is deducted up front, so you receive less than you borrow but repay the full amount.
Using the estimated monthly payment in a real decision
Parent PLUS loans carry higher rates and fees than loans in the student's name and have fewer repayment options, so exhaust scholarships, the student's own federal loans and work options first, and borrow only what your budget can repay before retirement.
When the result stops applying
Parent PLUS loans are the parent's debt, not the student's, and cannot be transferred to the student without refinancing privately. They require a credit check, and repayment options are more limited than for other federal loans. Federal loan limits and programs have been changing, so check current rules. Retirement is a real constraint: a payment that continues past retirement is a risk.
What to compare it with
Compare with private options on the student loan refinance and loan comparison calculators, and see the college cost and scholarship impact pages for the total need. The student loan payment and payoff calculators show a schedule for any student loan. The retirement savings calculator shows what the payments cost your own plans.
People also ask
Frequently asked questions
Who is responsible for a Parent PLUS loan?
The parent who borrows it. The student has no legal obligation, and the loan cannot be shifted to the student unless it is refinanced into a private loan in the student's name.
Are Parent PLUS rates higher?
Yes. They carry higher fixed rates and an origination fee than most loans for undergraduate students, so they should be a last resort after other aid.
Can I get forgiveness for a Parent PLUS loan?
Only in limited cases, such as PSLF, and access to income-driven plans requires consolidation, so check current rules before borrowing.