PLUS Loans for Divorced or Separated Parents

PLUS Loans are a popular federal loan provided through the Federal Family Education Loan Program designed to help parents pay for their child's college education. It is essentially a loan given to the parents of a dependent undergraduate student enrolled at least half time in an eligible school or institution. There are, however, a few notable differences that need to be taken into account when the parents of the undergraduate are divorced or separated. 

First, if the undergraduate's parents are divorced, both parents are still able to borrow from the PLUS loan program so long as the total amount borrowed by both parents is not more than the cost of attendance minus the aid received cap. 

Stepparents are also able to borrow from the program provided they are married to the custodial parent with whom the child is living. In this instance, the stepparent's information will be included in the original FAFSA application. It is important to note that the stepparent's income and assets will also be configured when applying for a PLUS Loan into the final calculation of the family's financial contribution.

A stepparent married to a non-custodial parent is not allowed to borrow on the loan, nor is a legal guardian. 


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