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Parent Loans

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.

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. The Federal Direct Parent PLUS Loan is a form of aid that must be repaid by the parent borrower.

Student Eligibility Requirements The student must meet certain eligibility criteria in order to be eligible or maintain eligibility for Federal Student Aid.
Parent Eligibility Requirements

Be a U.S. citizen or eligible non-citizen;

Be the student’s biological or adoptive parent; or be the student’s stepparent that was included on the Free Application for Federal Student Aid (FAFSA)

How to Apply
  1. Student (parent applicant's child) must complete the Free Application for Federal Student Aid (FAFSA).
  2. Once the student receives an Award Notice, the parent applicant must complete and return to Raider Connect a Parent Pre-Approval and Acceptance Form for Federal Direct PLUS Loan Processing.
  3. Parent applicant must complete a Federal Direct Parent PLUS Loan Master Promissory Note (MPN).
Interest Rate

For loans with a first disbursement date on or after July 1, 2015, and before July 1, 2016:

6.84% fixed

For loans with a first disbursement date on or after July 1, 2014, and before July 1, 2015:

7.21% fixed

Additional Loan Fees/Rebates

For loans with a first disbursement date after October 1, 2015:

  • Origination Fee: 4.272%

For loans with a first disbursement date after October 1, 2014 and before October 1, 2015:

  • Origination Fee: 4.292%
Credit Reviews

The parent applicant must not have adverse credit history.   

Beginning March 29, 2015, credit decisions are valid for 180 days; therefore the Office of Financial Aid will conduct credit checks no sooner than 180 days prior to the student’s start date.

Please note: 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 180 days, therefore a credit check should be completed no sooner than 180 days prior the student's start date.
Options if Denied Credit

Additional Federal Direct Unsubsidized Stafford Loan

  • The student can receive an additional $4,000 (Freshman and Sophomore status) or $5,000 (Junior and Senior status) in Federal Direct Unsubsidized Stafford Loan funds up to the Cost of Attendance.

Extenuating Circumstances

  • If the parent wants to appeal the credit decision, check the Endorser/Extenuating Circumstance box under Option 2 on the Parent Pre-Approval and Acceptance Form for Federal Direct PLUS Loan Processing.
  • The parent applicant may contact the Student Loan Support Center at 1-800-557-7394 or log into studentloans.gov to document their extenuating circumstances with the Department of Education to appeal the credit decision.
  • If the parent qualifies by documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to the parent’s adverse credit history, the parent will be required to complete PLUS counseling before the parent can receive a Direct PLUS Loan.

Obtain an Endorser

  • If the parent wants to obtain a credit worthy endorser, check the Endorser/Extenuating Circumstance box under Option 2 on the Parent Pre-Approval and Acceptance Form for Federal Direct PLUS Loan Processing.
  • The endorser will need to pass the credit check, agree to endorse the Master Promissory Note (MPN), and agree to repay the loan if the parent would fail to do so.
  • If the parent qualifies by obtaining a credit worthy endorser, the parent will be required to complete PLUS counseling before the parent can receive a Direct PLUS Loan.
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. Visit studentloans.gov for more information.

Federal Loan Consolidation Available under certain circumstances. Visit the studentloans.gov for more information.
 
Right to Cancel A Loan

Once you, the parent borrower, turn in the Parent Pre-approval and Acceptance Form for Federal Direct PLUS Loan Processing you have the right to cancel or reduce the amount that you accepted. If you want to cancel or reduce the amount of loan funds accepted, contact Raider Connect.

Wright State University shall honor your request to cancel or reduce the loan if we receive your request (1) prior to you receiving a refund check from the Office of the Bursar or (2) after receiving your refund check, you request to return the entire loan disbursement. Otherwise, any portion of the loan that was refunded to you is your responsibility to return to your loan servicer. For assistance in returning loan funds refunded to you, please contact Raider Connect.

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.