If a dependent student’s parents are divorced, both parents can take out separate Parent PLUS Loans with separate Master Promissory Notes (MPNs).
But the combined Parent PLUS Loans cannot exceed the loan limits.
The standard repayment term on Parent PLUS Loans is 10 years.
However, borrowers may qualify for a longer repayment term if they consolidate the loans or have more than $30,000 in federal student loans.
(Generally, federal student loans are sent to schools in two or more disbursements, except at colleges and universities that have a low default rate.) If the borrower does not pay the interest as it accrues, it will be capitalized (added to the loan balance), increasing the size of the loan. Parents may be able to deduct up to $2,500 per year in interest paid on the Parent PLUS Loan through the student loan interest deduction.