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The Federal 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 to receive federal student aid, and students must meet satisfactory academic progress requirements. The Federal Parent PLUS Loan is a form of aid that must be repaid by the parent borrower.
Federal Parent PLUS Loan Overview |
| How to Apply |
- Student (parent applicant's child) must complete the Free Application for Federal Student Aid (FAFSA).
- Once the student receives an Award Notice, the parent applicant must complete and return to the Office of Financial Aid a Parent Information and Acceptance Form for Federal PLUS Loan Processing.
- Parent applicant must complete a Federal Parent PLUS Loan Master Promissory Note (MPN) and PLUS Loan PreApproval. When completing the MPN the parent applicant must choose a participating lender. Visit our Lender List page.
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| Interest Rate |
8.5% fixed |
| Additional Loan Fees |
- Origination Fee: 3%
- Default Fee: 1%
NOTE: The lender you select may waive these fees. Visit our Lender List page for more information. |
| Credit Requirements |
Yes, borrower must be deemed credit-worthy. Credit denied applicants who would like to attempt to resolve the denial or apply for the Federal Parent PLUS Loan with a credit-worthy endorser (co-borrower) can contact Great Lakes Educational Loan Services by calling (800) 247-0462.
NOTE: If a parent applicant is credit denied, the student can receive additional Federal Stafford Loan funds in place of the PLUS Loan. Parents can complete a PLUS Loan PreApproval to determine creditworthiness. If any parent applicant is credit approved, then the student is not eligible for the additional Stafford Loan funds. |
| Annual Loan Maximums |
Cost less aid. |
| 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 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 years. 25 years for borrowers whose first loan was made on/after October 7, 1998 with a balance at or above $30,000. |
| Deferment/Forbearance |
A Federal 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.* |
| *Contact Great Lakes Educational Loan Services or your loan servicer for more information. |
Notice to Nonresident Students Applying for Ohio Residency
If your parent is not an Ohio resident an borrows a Federal Parent PLUS Loan for your educational expenses, it can affect your application for Ohio residency. Please contact the Office of the Registrar by calling (937) 775-5588 for additional information.
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