See what a Parent PLUS loan really costs — the origination fee plus every dollar of interest.
What does a Parent PLUS loan really cost? Two things most families miss: an origination fee is deducted before the money reaches the school (so you receive less than you borrow but repay the full amount), and the fixed rate is relatively high for a federal loan. For loans disbursed July 1, 2025–June 30, 2026, the rate is 8.94% with a 4.228% origination fee.
Rates reset every July 1 — the calculator below is pre-filled with the current figures but you can enter whatever applies to your loan.
Federal guidance and most financial-aid offices suggest exhausting the student's own federal Direct loans first — they carry lower rates and fees than Parent PLUS, and the debt is the student's rather than the parent's. Parent PLUS is generally a gap-filler after grants, scholarships, work-study, and the student's federal loans. It is the parent's legal obligation to repay, and it is harder to discharge than most debt.
If your award letter leaves a gap this large, first check whether an appeal could reduce it — see our Appeal Letter Generator and College Cost Gap Planner.
Methodology: Standard fixed-rate amortization. Monthly payment is calculated on the full amount borrowed. The origination fee is modeled as a percentage deducted from disbursement (you repay the full borrowed amount but only receive amount × (1 − fee)). "True total cost" = total interest paid + the origination fee lost up front. Rates and fees reset annually; enter your own loan's figures for an exact result.