What Costs Do PLUS Loans Cover?

PLUS loans are usually the last resort for parents, of undergraduates or graduate students, when other funding is not available. The loan typically serves as a bridge to cover the costs not covered by other student aid programs. 

Costs Covered by the Loan

Generally, a PLUS loan is designed to cover the student's total "cost of attendance," minus the amount of other student financing acquired from other sources. If, for instance, the borrower's sum total of educational expenses is $7,500 and, they are granted $4,000, the PLUS loan will pay off the remaining balance of $3,500 to cover the entire expenditure.

Cost of Attendance

The cost of attendance in a PLUS loan pays the following school-related charges:

  • School's tuition and fees - includes purchase or rental fees for equipment required in the course of study
  • Allowance for school supplies - books, projects, transportation, and personal expenses miscellaneous
  • Student housing costs - covers allowance for room and board rental and related expenses
  • Cost to obtain professional license or certificate required in the program
  • Allowance for disability-related expenses for disabled students
  • Cost of origination fee - and insurance fee for students with Federal Family Education Loan or other type of student loans that requires the said fees

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