The Federal Direct Parent PLUS Loan program allows a parent to borrow funds for the educational costs of a dependent student which are not covered by other sources of financial aid. This is a credit-based loan and will require repayment. Please carefully review the following information before continuing with the application process.
A parent may be eligible to borrow if the dependent student meets the following requirements:
In addition, the parent borrower must meet the following requirements:
Individuals who may request the Federal Direct Parent PLUS loan are:
A legal guardian is not considered a parent for financial aid purposes and may not request a Federal Direct Parent PLUS loan.
A Federal Direct Parent PLUS Loan can only cover educational costs not met by other sources of financial aid. Loan eligibility is determined by the Office of Financial Aid. Factors taken into account are the cost of attendance for the loan period requested and the total amount of any other financial aid awarded. Conservative borrowing is strongly encouraged.
To receive a Federal Direct Parent PLUS Loan, the parent must pay an origination fee. The current origination fee is:
* This fee is deducted from loans before funds are sent to the school.
Note: Eligible U.S. Military Service Members may be able to request an interest rate of 0% from the Federal Direct Parent PLUS Loan Program. Eligible borrowers should contact the Direct Loan servicer for further details.
Step 1: The parent completes a Federal Direct Parent PLUS Request and Master Promissory Note at StudentLoans.gov. Please refer to the Federal Direct Parent PLUS Loan Application Instructions for instructions.
Step 2: The student completes the Free Application for Federal Student Aid (FAFSA).
Step 3: The Office of Financial Aid calculates loan eligibility based on federal and institutional guidelines. The information is transmitted to the U.S Department of Education.
Step 4: An award notice is sent to the student's Ozone account once the loan is processed. Students who do not have an Ozone account will receive a notice by mail.
Step 5: Direct Loan Servicing will review the parentís credit history. Direct Loan Servicing will then send the parent a Plain Language Disclosure and a Disclosure Statement which indicates the anticipated disbursement dates and amounts. Parents should keep these disclosures for their records. If the Federal Direct Parent PLUS Loan is denied based on adverse credit, a letter will be sent to the parent.
Step 6: Once disbursements begin for the semester, Owens will apply the loan funds to the student's account as long as the student still meets eligibility requirements and class attendance has been verified in at least six credit hours. Any amount remaining after tuition, fees, and authorized charges have been paid will be provided as a refund.
Step 7: The parent begins repayment of the loan within 60 days after the loan is fully disbursed, or, if selected, six months after the student has graduated or is no longer enrolled at least half time.
It is a federal regulation that all loan funds are disbursed in a minimum of two disbursements. If the parent applies for a loan for two or more semesters, one disbursement will occur for each semester. If the parent applies for a loan for only one semester, the loan will be provided to the student in two separate disbursements within the semester. The second disbursement will be issued after half of the semester has been completed.
Funds will automatically be applied to the student's Owens account balance after attendance in the student's classes has been verified. Any amount remaining after tuition, fees, and authorized charges have been paid will be provided as a refund. If a parent indicates on the Federal Direct Parent PLUS Request that the refund should be provided to the student, the student will receive the refund from Higher One. Otherwise, parents will receive a paper check which is mailed from the Office of Student Accounts. Please allow approximately ten business days for a refund check to be printed and mailed.
If the parent decides to cancel all or a portion of the Federal Direct Parent PLUS Loan, please contact Oserve.
If the student does not complete all classes in which he/she is enrolled for the semester, federal regulations may require that the Office of Financial Aid return a portion, or the full amount, of the Federal Direct Parent PLUS Loan to the U.S. Department of Education.
Parents can begin repayment of the principal and interest when the loan is fully disbursed to the institution. The first payment is generally due within 60 days, or the parent can choose to begin repayment six months after the student has graduated or is no longer enrolled at least half time. Contact the U.S. Department of Education for more information.
Making loan payments on time is one of the easiest ways to demonstrate a good credit history.
If the parent should experience difficulty in repaying the Federal Direct Parent PLUS Loan(s), the parent should contact their loan servicer for advice and assistance, including deferment and forbearance options.
If loan payments are not made and the delinquency is not resolved, the Federal Direct Parent PLUS Loan(s) will go into default. Default means that the parent has failed to make payments on the loan(s) according to the terms of the parentís Master Promissory Note (MPN).
If the parentís loan defaults:
The Direct Loan Servicer collects payments, processes deferment and forbearance requests and handles correspondence on behalf of the Federal Direct Loan program. The parentís loan servicer is listed on NSLDS.
The. U.S. Department of Education is the lender for the Federal Direct Parent PLUS Loan program.
The Federal Direct Parent PLUS Loan request cannot be processed after the last day of classes for the semester(s) for which the loan is intended. Applying early is recommended. Late applicants may not meet all of the eligibility criteria by the deadline.
In order for loan funds to be disbursed, the parentís signed, completed Federal Direct Parent PLUS Loan Master Promissory Note (MPN) must be received by the loan servicer within the designated time frame. Generally, the MPN must be received no later than 118 days after the last date of enrollment for the loan period.