This is a parent loan, sponsored by the federal government that is unrelated to need. Generally, parents can borrow up to the total cost of education, minus any aid received. This is a type of student loan NOT based on financial need.
The Federal Parent Loan for Undergraduate Students (PLUS Loan) offers parent borrowers an affordable education loan that can be used to finance up to 100% of their dependent's undergraduate education - less any student financial aid or scholarships. Eligible students must be enrolled at least half time at an accredited school, college, or university. Parents may qualify for a PLUS Loan even if their financial assets limit their eligibility for other loans.
PLUS Loans are an affordable borrowing option because they are federally backed and offer variable rates, which are typically better than credit card rates or most consumer loans. In addition, recent changes in the tax code may provide real tax advantages with the IRS for PLUS Loan borrowers.