Do Parent PLUS Loans Affect Your Credit Score?

What Are Parent PLUS Loans?

Parent PLUS loans are a type of federal student loan available to parents of dependent undergraduate students.

PLUS loans require a review of your credit for certain negative items, which could affect your eligibility to borrow (more on that below). They don't come with an automatic deferment of payments while the student is in school or for six months after they're no longer enrolled. (You must request a deferment when you apply or from your student loan servicer, and interest will accrue while you're not making payments.) They also have higher interest rates and fees than other federal loan types.

Changes to Parent PLUS Loan Limits

There are several changes to the PLUS loan program coming in the 2026-27 school year. Previously, parents could borrow up to the college's cost of attendance, minus all other financial aid the student received. But as of July 1, 2026, parents can only borrow up to $20,000 per year, per student. Additionally, parents are limited to having a maximum of $65,000 in unpaid federal student loans in their name at any time on behalf of each student.

Some parents can continue to borrow up to the child's cost of attendance for a period of time, however. If the student will stay in the same school and course of study they were enrolled in before June 30, 2026, and you previously took out a parent PLUS loan (or the student took out a federal direct loan) for that course of study, you can take out a parent PLUS loan for up to three years under the previous guidelines—or until the student leaves school, whichever comes first.

Learn more: What Are PLUS Loans?

How Can a Parent PLUS Loan Impact Your Credit Score?

There are three ways a parent PLUS loan can impact your credit score: as a result of the initial credit inquiry upon application, as a result of your payment history and due to the increased amounts owed. But only the parent borrower's credit will be affected, since they're the one who's responsible for payment. Here's what to expect.

Do Parent PLUS Loans Affect the Parent's Credit?

Parent PLUS loans do affect the parent's credit. When you apply for a parent PLUS loan, the U.S. Department of Education will review your credit reports to determine if you have an "adverse credit history." This has a specific definition for the purposes of PLUS loan borrowing: Your application could be denied if you had a recent negative credit event like a bankruptcy or foreclosure, or you have a certain amount of delinquent debt or debt in collections.

The next way parent PLUS loans can affect your credit is during the repayment process. Payment history accounts for the largest share of your credit score. Negative items like late payments or missed payments can significantly impact your score, and will stay on your credit report for seven years. Having additional debt in the form of parent PLUS loans can also impact your credit negatively since the amount of debt you owe is the second largest factor of your credit score. On the other hand, making all loan payments on time can be beneficial for your score.

Learn more: Can You Get a Student Loan With Bad Credit?

Do Parent PLUS Loans Affect the Student's Credit?

Parent PLUS loans will not appear on the student's credit report because the student is not responsible for repayment. Only the parent will see the hard inquiry and loan account on their credit report. The parent's payment activity will have neither a positive nor a negative impact on the student's credit score, or their ability to get loans or credit cards later on.

What Happens if You Miss a Parent PLUS Loan Payment?

If you miss a parent PLUS loan payment by at least 30 days, the student loan servicer will likely report it to the credit bureaus. You will receive a negative mark on your credit report that will remain for seven years and lower your credit score.

What to Do if You Can't Afford Parent PLUS Loan Payments

It's important to seek out help if you realize you can't afford parent PLUS loan payments, since defaulting on student loans can lead to consequences like garnished wages and collection fees. Here are some options:

• Consolidate and apply for income-driven repayment. As part of the changes to parent PLUS loans, repayment options will become more limited. All parent PLUS loans must be repaid on a new tiered standard repayment plan, which extends payments over 10 to 25 years. If you want a lower payment based on your income, you can consolidate any currently outstanding parent PLUS loans into a direct consolidation loan before June 30, 2026, and apply for the income-contingent repayment (ICR) plan before July 1, 2028. This option is not available if you plan to take out new parent PLUS loans after July 1, 2026.
• Change your repayment plan. Those who are already repaying parent PLUS loans—and who won't take out a new one after July 1, 2026—can switch to a different repayment plan to potentially pay less per month. The extended repayment plan may lower your payments if you have more than $30,000 in debt and you stretch payments over the maximum 25 years. Check how switching plans could impact your monthly payment using the federal government's Loan Simulator.

Alternatives to Parent PLUS Loans

For many parents, PLUS loans aren't the right choice. They could be inaccessible to you for credit reasons, or you may need funding beyond the parent PLUS loan limit to cover your child's college costs. Here are some alternatives:

• Federal direct unsubsidized loans: The student can take out student loans on their own behalf, and their first stop—due to their flexibility and low cost—should be federal student loans. If you don't qualify for parent PLUS loans, your child may be able to get more federal unsubsidized loans than they would be able to otherwise. Dependent students can borrow up to $31,000 total in federal unsubsidized and subsidized student loans for their undergraduate studies. That limit rises to $57,500 if the parent was denied a parent PLUS loan.
• Private loans for parents: Particularly if you have good credit (a credit score of 670 or higher), you may be able to qualify for a private loan for parents at competitive interest rates. Just keep in mind that private loans offered by banks, credit unions and online lenders typically have fewer options to pause payments if you need to. Their rate ranges can also reach higher than federal parent PLUS loan rates for those whose credit isn't good or excellent.
• Private student loans cosigned by the parent: Another option is for the student to take out a private student loan in their own name, cosigned by the parent if their credit is good. That could help the student qualify and potentially get them a lower interest rate, but the student will ultimately be responsible for payment—which makes it critical for them to commit to timely payments after graduation. Private loans also have far fewer repayment options and no forgiveness programs like Public Service Loan Forgiveness (PSLF).

Frequently Asked Questions

The Bottom Line

If you are a parent borrower, parent PLUS loans will likely affect your credit score—but the impact will depend on how you manage the loans. If you repay them as agreed, the effect will be largely positive, while failing to pay on time could do serious harm to your credit. Changes to the parent PLUS loan program may make them harder to repay for many, especially since income-driven repayment won't be available to new borrowers. Before moving forward with a parent PLUS loan application, check your credit score and compare all your loan options' interest rates and repayment terms.