The loan type that allows you to borrow up to the cost of attendance, minus any other financial aid you have received, is the Direct PLUS Loan. This loan is available to eligible borrowers, including parents of dependent undergraduate students (Parent PLUS Loan) and graduate or professional students (Graduate PLUS Loan). Unlike standard subsidized or unsubsidized loans, PLUS Loans can cover the entire cost of tuition, housing, books, and other educational expenses after subtracting other aid received.
Key Details:
- The amount you can borrow is determined by the school's cost of attendance.
- The loan amount is reduced by any grants, scholarships, or other federal student loans already received.
- Available in two categories:
- Parent PLUS Loan for parents of undergraduates.
- Graduate PLUS Loan for graduate/professional students.
- These loans are credit-based and have different eligibility requirements compared to subsidized/unsubsidized loans.
This feature of borrowing up to the full cost of attendance minus other aid distinguishes the PLUS Loan from typical federal student loans, which have annual and lifetime borrowing limits.