 TITLE: Do Parent PLUS Loans Affect Your Credit Score? CONTENT: How Do Parent PLUS Loans Work?\n------------------------------\nA parent PLUS loan is a federal student loan that a parent (and sometimes a stepparent) can use to help pay for a dependent child's undergraduate education. You can learn more about the parent PLUS loan program on the U.S. Department of Education's website, but here are a few important basics:\n*   Before you can apply for a parent PLUS loan, your child must submit the Free Application for Federal Student Aid (FAFSA). The same form is required for your child to apply for federal student loans, along with certain grants and scholarships. A new FAFSA must be submitted ahead of each school year.\n*   If you meet the eligibility requirements, you can apply for a parent PLUS loan using the online direct PLUS loan application. You can borrow up to the cost of attendance at the school, minus financial aid that your child is already receiving.\n*   Unlike federal student loans given to undergraduate students, parent PLUS loans require a credit check. This credit check looks for adverse credit history (discussed below), and won't include a review of your credit scores.\n*   Parent PLUS loans have a disbursement (origination) fee and fixed interest rate. The fee and rate may fluctuate from year to year, but they're the same for all borrowers.\n*   The loan will go directly to the school to pay for tuition, room and board, fees and other educational expenses. If there are excess funds, you may receive them directly or request that they be sent to your child.\n*   While the funds help pay for your child's expenses, the parent who takes out the loan is generally solely responsible for repaying the loan.\n*   By default, your loan payments begin right away. You can request a deferment while your child is in schools and for the six months after they leave, but interest will continue to accrue. You can also choose from several repayment plans. END