How to Go to College on the CHEAP

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Parent Plus Loans

Father and teenager signing loan contract

There is also a loan your parents can apply for called a Direct Plus loan. This loan is backed by the U.S. Department of Education. This loan will be completely in your parent’s name, so bribery may be involved here. The interest rate is generally lower than loans serviced by private lenders. The current interest rate for a Direct Plus loan is 6.84 percent.

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The current maximum amount you can borrow for both Direct Unsubsidized loans and Direct Subsidized loans varies based on whether you are a dependent or independent student. This takes us back to the magic age of 24. The loan limits are also dependent on whether or not your parents were eligible for the Direct Plus loan. The table above breaks down the limits.

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