What is a Federal PLUS Loan?

The Federal Parent Loan for Undergraduate Students (PLUS) is a federal loan that a parent of a dependent undergraduate student can borrow to pay for his/her child's educational expenses, if the student is enrolled at least half time. Federal PLUS Loans must be repaid.

How to Apply!

QUICK LINKS

WSU Cost Calculator

Parent Information and Acceptance Form for Federal PLUS Loan Processing

WSU's List of Lenders

FASTChoice - Federal Parent PLUS Loan

Great Lakes Higher Education Corporation

What requirements must be met to borrow a Federal PLUS Loan?

•  The student must meet the general eligibility requirements for federal student aid and be enrolled at least half time [a minimum of six (6) registered credit hours/quarter].

•  The parent borrower must also meet some of the general eligibility requirements for federal student aid. For example, the parent borrower must be a U.S. citizen or eligible noncitizen and may not be in default or owe a refund to any federal student aid program.

•  The parent borrower must have no adverse credit history.

How can parents check to see they meet Federal PLUS Loan credit requirements?

Without applying for a Federal PLUS Loan, parents who are concerned as to whether or not they'll meet Federal PLUS Loan credit requirements may want to complete an Online PLUS PreApproval. If a parent's credit review yields a denial, federal regulations allow our office to award to the student, in place of a Federal PLUS Loan, Federal Unsubsidized Stafford Loan funds. When completing the Online PLUS PreApproval, if the result is a denial, our office will receive notification of that denial electronically and we will update the student's Award Notice accordingly.

How much can a parent borrow in a Federal PLUS Loan?

The amount of Federal PLUS Loan funds available is the student's cost of attendance at Wright State University minus any other financial aid accepted by the student. For example, if the student's cost of attendance at Wright State University is $13,000 and the student has accepted $3,000 in other financial aid, parent could borrow up to--but no more than--$10,000. The Office of Financial Aid encourages students and parents to use the WSU Cost Estimator to help determine the amount of Federal PLUS Loan funds a parent may want to borrow to cover a student's anticipated out-of-pocket expenses at Wright State University.

How do parents apply for a Federal PLUS Loan at Wright State University?

1. Submit FAFSA.

The student must first file a FAFSA .

2. If you plan to enroll Summer, go to WINGS Express and complete the Summer Aid Request.

Logon to the WINGS portal and click on the WINGS Express icon. Enter your University ID and WINGS Express PIN. Click on "Student and Financial Aid" and then click on "Financial Aid and Scholarships". Click on "Summer Aid Request" and select the appropriate aid year. Indicate your enrollment plans for Summer.

3. Check WINGS Express for Outstanding Requirements and/or Award Notice.

If the student has been admitted to Wright State University and has no additional outstanding requirements on his/her Financial Aid and Scholarship Requirement link on WINGS Express, the Office of Financial Aid will post the student's Award Notice on WINGS Express at the scheduled time. To check WINGS Express for outstanding requirements, logon to the WINGS portal and click on the WINGS Express icon. Enter your University ID and WINGS Express PIN. Click on "Student and Financial Aid" and then click on "Financial Aid and Scholarships". Click on "Financial Aid and Scholarship Requirements" and select the appropriate aid year. NOTE: Click on "Requirement Messages" for additional information/links regarding your outstanding requirements.

4. Go to WINGS Express to View Award Notice.

Logon to the WINGS portal and click on the WINGS Express icon. Enter your University ID and WINGS Express PIN. Click on "Student and Financial Aid" and then click on "Financial Aid and Scholarships". Click on "Award Notice" and select the appropriate aid year.

5. Complete Parent Information and Acceptance Form for Federal PLUS Loan Processing.

The parent applicant must complete and return a Parent Information and Acceptance Form for Federal PLUS Loan Processing to the Office of Financial Aid and Scholarships.

6. Complete Federal PLUS Loan Master Promissory Note.

The Office of Financial Aid processes Federal PLUS Loan funds with the guarantee agency, Great Lakes Higher Education Corporation (GLHEC). GLHEC will require the parent applicant to complete a Federal PLUS Loan Master Promissory Note (MPN). The Federal PLUS Loan MPN can be completed online at FASTChoice - Federal Parent PLUS Loan. When completing the Federal PLUS Loan MPN, the parent applicant will be required to select a participating lender from which to borrow the loan funds.

Notice to nonresident students who plan to apply for Ohio residency in the future: If your parent is not an Ohio resident and borrows a Federal PLUS Loan, this can affect your application for Ohio residency. Please contact the Office of the Registrar at (937) 775-5588 for additional information.

What happens after a parent has completed the Federal PLUS Loan MPN?

The Office of Financial Aid will transmit to Great Lakes Higher Education Corporation (GLHEC) a school certification* for Federal PLUS Loan processing. Once GLHEC receives both the parent applicant's MPN and the school certification, GLHEC will process the loan, which will include a review of the parent applicant's credit history. If approved, the parent borrower will receive a Notice of Guarantee from GLHEC. If denied, the parent applicant will receive a denial letter from GLHEC. The parent applicant can contact GLHEC at 1-800-247-0462 in an attempt to resolve the denial, or, if parent cannot or chooses not to resolve the denial, the parent applicant can forward a copy of the denial letter received from GLHEC to the Office of Financial Aid so that additional Federal Unsubsidized Stafford Loan funds can be offered to the student.

* Please note, the Office of Financial Aid will begin transmitting school certifications to GLHEC on July 1, 2006 for all Fall Quarter 2006 loans.

How are Federal PLUS Loan monies applied to the student's fees?

Great Lakes Higher Education Corporation will disburse to Wright State University the parent borrower's Federal PLUS Loan proceeds in accordance to the parent borrower's Notice of Guarantee. The Office of the Bursar will release the Federal PLUS Loan disbursements received to the student's account as long as the student is enrolled for the required registered credit hours indicated on the student's Award Notice. The loan funds will be applied first to the student's tuition, fees, room and board, and other institutional charges permitted by the student. Any Federal PLUS Loan funds remaining, after being applied to the student's fees, will be mailed to the parent borrower by check.

What is the interest rate on a Federal PLUS Loan?

For the 2008-2009 aid year (from July 1, 2008 to June 30, 2009) the interest rate for a Federal PLUS Loan is fixed at 8.5 percent (8.50%).

Other than interest, are there other fees to get a Federal PLUS Loan?

The parent borrower will be charged a fee of up to four percent (4%), deducted proportionately from each loan disbursement. (Part of the fee is for insurance used to pay off loan defaults; the rest reduces the cost of the loan to the government.) Because of this deduction, the loan disbursements will be slightly less than the amount borrowed by the parent.

When do parents begin repaying a Federal PLUS Loan?

Generally, repayment must begin within 60 days after the loan is fully disbursed. There is no grace period for Federal PLUS Loans. Parent borrowers must begin repaying both principal and interest while the student is enrolled in school.

Is it ever possible to postpone repayment of a Federal PLUS Loan?

Under certain circumstances, parent borrowers can receive a deferment or forbearance on their Federal PLUS Loan, as long as the loan is not in default. Parent borrowers should contact Great Lakes Higher Education Corporation at 1-800-247-0462 or visit their web site at www.mygreatlakes.com for more information on deferments or forbearances available for Federal PLUS Loan borrowers. Since Federal PLUS Loans are unsubsidized, parent borrowers will be charged interest during periods of approved deferments and forbearances. If the interest isn't paid as it accrues, it will be capitalized (increasing the total loan amount the parent borrower is required to repay).