The loan type that allows you to borrow up to the school’s cost of attendance (minus other financial aid) is the Direct PLUS Loan (Parent PLUS for parents of dependent undergrads and Grad PLUS for graduate/professional students).

What “up to cost of attendance” means

  • Schools set a formal cost of attendance (COA) that includes tuition, fees, room and board, books, supplies, and some personal/transportation costs.
  • With Direct PLUS Loans, the maximum you can borrow is COA minus any other aid (grants, scholarships, subsidized/unsubsidized loans, etc.).

How Direct PLUS Loans work

  • Available to:
    • Parents of dependent undergraduate students (Parent PLUS).
* **Graduate/professional students** (Grad PLUS).
  • Unlike Direct Subsidized and Unsubsidized Loans (which have strict annual and lifetime caps), PLUS Loans are specifically structured to fill the gap up to the full cost of attendance.

Key pros and cons

  • Potential advantages:
    • Can cover remaining educational costs when other federal aid is maxed out.
* Fixed interest rate for the life of the loan.
  • Major drawbacks:
    • Credit check is required, and adverse credit history can cause denial.
* Interest starts accruing immediately and rates/fees are usually **higher** than standard Direct Loans.

TL;DR: If you are asking “which loan type allows you to borrow up to the cost of attendance?” the answer in U.S. federal student aid is the Direct PLUS Loan (Parent PLUS or Grad PLUS) , up to cost of attendance minus other financial aid.

Information gathered from public forums or data available on the internet and portrayed here.