Student Financial Aid

Loan Programs

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

Your parent must complete, sign and return the Parent PLUS Form which is available at
sfa.osu.edu/forms/award/plus.pdf.

Ohio State does not participate in the online application process at
StudentLoans.gov.

To apply for the Federal Direct Parent PLUS Loan, file the FAFSA. Review with your parents your entire Ohio State financial aid offer, which you can view online at the Student Center, accessible via Buckeye Link. While a maximum Parent PLUS amount has been calculated and is displayed there, we encourage you to discuss with your parents the financial aid package, your anticipated "out-of-pocket" costs, and the financial resources your family may be able to supply for direct university expenses and other indirect costs such as books and supplies and transportation. You may find that your parents will not need to borrow in the Parent PLUS program at all or may need to borrow far less than your maximum eligibility. Please be aware that any student loans awarded to you have better interest and repayment terms than the Parent PLUS.

If you and your parents determine that Parent PLUS funds are needed, your parents may print the Parent PLUS Form from our website at sfa.osu.edu/forms/award/plus.pdf, complete it, and return it to the address on the form. 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.  Step-parents may serve as a borrower only if his or her information was provided on the student’s FAFSA.

Your parent borrower must also sign a promissory note, available at the electronic MPN website.

If you and your parents determine that the Parent PLUS Loan will not be needed, no further action is necessary.

Options if Denied

If you have adverse credit history, you may still receive a Direct PLUS Loan by obtaining a credit-worthy endorser or by documenting, to the Department of Education’s satisfaction, the extenuating circumstances relating to your adverse credit history.

If a parent is unable to secure a PLUS Loan, the undergraduate dependent student may be eligible for additional unsubsidized loans. Freshman and sophomore students may borrow and additional $4000 in unsubsidized loans and junior and senior students may borrow an additional $5000 in unsubsidized loans.

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 6.41% interest rate. Interest will begin to accrue as soon as the loan disburses. Your parents have the option of deferring repayment based on your enrollment status. Specifically, parent PLUS borrowers may defer repayment:

  • While you, the student, are enrolled on at least a half-time basis, and
  • During the 6-month period after you cease to be enrolled on at least a half-time basis

Parent borrowers may request an in-school deferment form by contacting their loan servicer. Please note that if your parent does not choose to defer payment, repayment begins 60 days after full disbursement of the loan.

Interest will be capitalized until repayment begins. If a deferment is chosen, your parent will be sent a quarterly interest statement and will have the option of paying the interest as it accrues during the deferment period. Your parent may be allowed up to thirty years for repayment. Borrowers of the Parent PLUS Loan are charged an origination fee of four percent (4.288%), 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

Your parent borrower has the right to cancel all or part of your federal loan disbursement within 14 days of official notification that loan funds have credited to your university account, or before the first day of classes, whichever occurs last. For Parent PLUS Loans, official notification occurs with the posting of the loan to the 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.

A credit check is required of the borrower each time a Parent PLUS Loan is requested. Ohio State will be notified of the results of the credit check. Your parent will also receive notification from the federal processor.

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. Once these requirements have been successfully completed, the Parent PLUS Loan funds will credit to your account provided you are enrolled at least half time and are otherwise eligible to received federal financial aid.

 

First File the FAFSA