A parent loan is a loan a student's parent may borrow to assist in paying for the student's educationally-related expenses. Parent loans must be repaid by the parent borrower.
Federal Direct Parent PLUS Loan
The Federal Direct Parent Loan for Undergraduate Students is a federal loan that credit-worthy parents of dependent undergraduate students can borrow for their child's educational expenses. Both parent applicants and students must meet eligibility requirements for federal student aid, and students must meet Satisfactory Academic Progress (SAP) requirements. The Federal Direct Parent PLUS Loan is a form of aid that must be repaid by the parent borrower.
|How to Apply||
|Interest Rate||6.41% fixed|
|Additional Loan Fees/Rebates||
For loans with a first disbursement date between March 1, 2013 - November 30, 2013:
For loans with a first disbursement date after December 1, 2013:
Yes, borrower must be deemed credit-worthy. Credit denied applicants who would like to attempt to resolve the denial or apply for the Federal Direct Parent PLUS Loan with a credit-worthy endorser (co-borrower) can contact DL Applicant Services by calling (800) 557-7394.
NOTE: If a parent applicant is credit denied, the student can receive additional Federal Direct Stafford Loan funds in place of the Direct PLUS Loan. Parents can complete a Parent Pre-Approval and Acceptance Form for Federal Direct PLUS Loan Processing to determine creditworthiness. If any parent applicant is credit approved, then the student is not eligible for the additional Direct Stafford Loan funds. Credit decisions are valid for only 90 days, therefore a credit check should be completed no sooner than 90 days prior the student's start date. For more information, see Credit Checks below.
|Annual Loan Maximums||Cost less aid. For information on costs, visit our Tuition & Fees page.|
|Aggregate Loan Maximum||None|
|Enrollment Requirement||Student must be enrolled at least half-time (at least 6 undergraduate credit hours).|
|Disbursement||For a given term, loan funds are disbursed no sooner than 10 days prior to the student's first attend date. Funds are applied directly to the student's account. If the student's account is paid in full and any Federal Direct Parent PLUS Loan funds remain, the Office of the Bursar will issue the remaining loan funds to the parent borrower in the form of a refund.|
|Grace Period||None. Repayment begins within 60 days after the loan is fully disbursed.|
|Minimum Monthly Payment||$50|
|Maximum Repayment Period||10 to 25 years depending upon your repayment plan. Visit the U.S. Department of Education's Federal Direct Loans website for more information.|
|Deferment/Forbearance||A Federal Direct Parent PLUS Loan borrower may receive a deferment while the student is enrolled on at least a half-time basis. Deferment/forbearance may be available under other circumstances.*|
|Federal Loan Consolidation||Available under certain circumstances. Visit the studentloans.gov for more information.|
|*For additional information, visit studentloans.gov.|
A parent may prefer the Office of Financial Aid review his/her creditworthiness without applying for the PLUS Loan so the student can be considered for additional Unsubsidized Stafford Loan funds. To do so, the parent can complete a Parent Pre-Approval and Acceptance Form for Federal Direct PLUS Loan Processing, checking Box 1 in Part A for a credit check only, and return the completed form to Raider Connect.
Credit decisions are only valid for 90 days. To best ensure a valid credit decision, the Office of Financial Aid will accept credit decisions 90 days prior to the student's start date.
|Starting Term||Earliest Date for Valid Credit Decision|
|Summer 2014||April 1, 2014|
|Fall 2014||May 27, 2014|
|Spring 2015||October 14, 2014|
Notice to Nonresident Students Applying for Ohio Residency
If your parent is not an Ohio resident and borrows a Federal Direct Parent PLUS Loan for your educational expenses, it can affect your application for Ohio residency. Please contact Raider Connect for additional information.