A federal Direct PLUS Loan carries its own fixed rate and origination fee, structurally different from a standard private loan.
How it works
The origination fee is subtracted from the requested amount to find net proceeds actually disbursed. The monthly payment is calculated on the full requested amount, since the borrower repays the full amount even though the fee reduced what was actually received.
What this does not include
This computes the standard repayment plan payment only — Parent PLUS loans have more limited access to income-driven repayment plans than Direct Loans made to students, a distinction beyond this calculator’s standard-plan payment figure.
How to use this calculator
- Enter the requested loan amount, origination fee, interest rate, and repayment term.
Frequently asked questions
Why does the origination fee reduce proceeds but not the repayment amount?
The fee is withheld from the disbursement to the school, but the borrower’s obligation is based on the full amount borrowed, not the reduced amount received.
Are Parent PLUS loan rates the same as student Direct Loan rates?
No — Parent PLUS loans carry a higher fixed rate than Direct Subsidized or Unsubsidized loans made directly to students for the same academic year.
Can a Parent PLUS loan be transferred to the student?
Not directly through the federal program — a parent can potentially refinance the loan with a private lender in the student’s name, but this exits the federal loan system and its protections.
