By now, undergraduates are making their final preparations for school: deciding on class schedules, arranging housing and finalizing financial aid awards. While some lucky students have received enough aid and grants to see them through the semester or maybe even the school year, others may be taking on additional work hours to help pay for their college expenses.

    Some undergraduate students who have already used all their available resources like grants, student loans, scholarships and federal work-study may still find themselves falling short on their college expenses. These students may want to ask mom or dad to consider taking out a credit-based Federal Parent Loan for Undergraduate Students, otherwise known as PLUS loans.

    The Ins and Outs for Mom and Dad

    With a PLUS loan, parents can borrow money for dependent children who are undergraduates enrolled in college at least half time. Either parent can apply, and because the PLUS program isn’t a need-based aid program, it doesn’t matter how much mom and dad make. But parents do have to fill out a Free Application for Federal Student Aid (FAFSA) and meet the following eligibility requirements:

• Creditworthy
• Not in default on any federal student loans
• U.S. citizen or permanent resident
• Have a valid Social Security number

• Under 24 years old
• Single with no dependents
• Not in the military or a military veteran
• Not a ward of the court
• U.S. citizen or permanent resident
• Have a valid Social Security number

     One of the great things about PLUS loans is that the amount a parent qualifies for is based on the entire cost of attendance, which isn’t just tuition and room and board, but also includes a reasonable allowance for other education-related expenses, like student fees, books and educational supplies. Each year, qualifying parents can take out up to the PLUS limit, which is the cost of attendance minus any other financial aid their child receives.