Federal Direct Parent Loan for Undergraduate Students
Federal Direct Parent Loan for Undergraduate Students (Parent "PLUS Loan") is a federal loan available to parents of dependent students. Parent PLUS Loans are based on educational costs and not on financial need. This loan, in combination with other aid, cannot exceed educational costs as determined by Ohio State.
Eligibility Criteria
Parent borrowers and their dependent undergraduate students must be U.S. citizens or eligible non-citizens. Students must be enrolled at least half time and must maintain Satisfactory Academic Progress for Financial Aid eligibility. In addition, borrowers must meet all other requirements listed as Student Rights and Responsibilities.
Application Process
Parent PLUS Loan Application Process
Your parent must complete, sign and return the Parent PLUS Form which will be sent via U.S. Mail
under separate cover shortly after you are awarded. The maximum amount of Parent PLUS
for which you are eligible will be printed on this Parent PLUS Form.
To apply for the Federal Direct Parent PLUS Loan, file the FAFSA or Renewal FAFSA. OSFA will send a Parent PLUS Form under separate cover via U.S. Mail to the parents of dependent students whose budget is not met in full. Your parent borrower must complete, sign and return the Parent PLUS Form, which will have the maximum amount of Parent PLUS for which you are eligible pre-printed.
If your parents do not receive the pre-printed Parent PLUS Form, they may print a blank form from our website at sfa.osu.edu/forms/award/plus.pdf. We will award the amount of Parent PLUS Loan your parent borrower requests on the Parent PLUS Form up to the amount of your total eligibility. When we receive the completed Parent PLUS Form, we will begin the credit check process.
Your parent borrower must also sign a promissory note, available at the electronic MPN website.
If your parent wishes to accept less than the full amount offered, he or she should complete, sign and return the Parent PLUS Form indicating the total amount desired.
If your parents wish to decline the Parent PLUS Loan, no further action is necessary.
Borrowing Limits
The maximum Parent PLUS Loan your parents may borrow per academic year is equal to your cost of attendance minus other financial aid (including Federal Direct Subsidized and/or Federal Direct Unsubsidized Loans for which you are eligible). There is no aggregate maximum loan limit for the Parent PLUS Loan.
Repayment Terms
The Federal Direct Parent PLUS Loan is a fixed-rate loan with a 7.9% interest rate effective July 1, 2006. Your parents are responsible for paying the interest while you are enrolled, but may choose to defer the interest payments. Repayment of principal and interest begins within 60 days after the date of the final disbursement unless your parents qualify for a deferment, however, interest begins to accumulate at the time the first disbursement is made. Your parents may be allowed up to thirty years for repayment. Borrowers of the Parent PLUS Loan are charged an origination fee of four percent (4%), which will be subtracted from the loan before disbursement.
For more information about borrowing limits, repayment plans, and interest rates, go to the U.S. Department of Education's web page about Parent PLUS Loans at studentaid.ed.gov.
Loan Cancellation
You have the right to cancel all or part of your federal loan disbursement within 14 days of official notification. For Parent PLUS Loans, official notification occurs with the posting of the loan to your student’s university account. See complete loan cancellation procedures.
What do I need to do to receive my award?
In order to receive a Parent PLUS Loan award, your parent borrower must complete all of the application procedures outlined above.
The same parent borrower who completed and signed the Parent PLUS Form must sign an Electronic Master Promissory Note, available at the electronic MPN website, using the individual PIN number previously assigned. A credit check is required of the borrower each time an additional Parent PLUS Loan is requested. This process may take up to 3 weeks. Once these requirements have been successfully completed, the Parent PLUS Loan funds will credit to your account.
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