PLUS is the abbreviation of Parent Loan for Undergraduate Students. They are offered to the parents of students those who have joined in a full time higher education program at American institutions of higher education. PLUS loans share lots of similarities and differences from Perkins and Stafford loans in many aspects.

They are usually offered under Title IV of the higher education act like Perkins and Stafford loans. As a result, they are backed with full faith of the US government. They are available through both Federal Direct Student Loan Program and also through Federal Family Education Loan Program (FFELP). The loan can also be consolidated through College Consolidation Loan program.

The differences include the repayment starts immediately and there is only interest rate term. The repayment commitment is made by parent in this type of loan. The rates of interest are also high and the important of all, the loan is sanctioned only at the absence adverse credit history for the parent.

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