What are the pros and cons of a Parent PLUS loan?

A federal Parent PLUS loan lets a parent borrow up to the full cost of attendance minus other aid, which is its main appeal: it can close any remaining gap when savings and student loans fall short. The downsides matter, though. The interest rate is higher than the student's federal loans, plus there's an origination fee of around 4%, and the parent – not the student – is legally on the hook. Repayment generally starts soon after disbursement unless you request deferment, and the debt can crowd out your own retirement saving. PLUS loans qualify for some federal protections, but income-driven repayment requires consolidating into a specific plan. Borrow only what you truly need, and never let PLUS loans push you to underfund your 401(k). Check the balance with wealthserene.com/tools/retirement-planner before signing.