PLUS loan stands for Federal Parent Loans for Undergraduate Students. These loans are taken out by the student’s parents on behalf of the student.

PLUS Loans are federal loans available to the parents of students who attend college on at least a half-time basis. Similar to Stafford Loans, PLUS Loans may be consolidated and are provided by the federal government. Before July of 2008, PLUS loans required payments to be made while the student was enrolled, but this has since changed to the same schedule as Stafford Loans.

PLUS Loans have a fixed interest rate and begin charging interest from the loan’s origination date. But because the loan is signed for by the parents, rather than the student, a PLUS Loan will not affect the student’s credit.