Introduction
Are you a parent looking for financial assistance to send your child to college? Look no further than the Parent PLUS Loan at Ohio University. This loan program has helped countless families cover the cost of their child’s education.
In this comprehensive guide, we’ll cover everything you need to know about the Parent PLUS Loan at Ohio University. From eligibility requirements to application processes, we’ve got you covered.
Who is this Guide for?
This guide is designed for parents who want to help their child finance their college education. If you’re struggling to find the means to pay for college, the Parent PLUS Loan at Ohio University may be the solution you need.
What is the Parent PLUS Loan?
The Parent PLUS Loan is a federal loan program offered by the U.S. Department of Education that allows parents to borrow money to pay for their child’s college education. The loan can cover up to the full cost of attendance, minus any financial aid that the student receives.
How Does it Work?
Parents can borrow up to the full cost of attendance for their child’s education, including tuition, room and board, books and supplies, and other expenses. Plus loans have a fixed interest rate that is set by the federal government and that can change from year to year. Parents are responsible for repaying the loan plus any interest that accrues while the student is in school. Repayment typically begins six months after the student graduates or drops below half-time status.
What are the Eligibility Requirements for the Parent PLUS Loan?
To qualify for the Parent PLUS Loan at Ohio University, you must:
- Be the biological or adoptive parent of a dependent undergraduate student
- Not have an adverse credit history
- Meet other general eligibility requirements for federal student aid
How Do I Apply for the Parent PLUS Loan?
To apply for the Parent PLUS Loan at Ohio University, follow these steps:
- Complete the Free Application for Federal Student Aid (FAFSA)
- Visit studentloans.gov and sign in using your FSA ID
- Select “Apply for a PLUS Loan” and choose “Parent PLUS” as the loan type
- Complete the application, including a credit check
- Sign a Master Promissory Note (MPN)
When Should I Apply for the Parent PLUS Loan?
Parents should apply for the Parent PLUS Loan at Ohio University as soon as possible, preferably when the student is applying for financial aid. It’s important to apply early to ensure that funds are available when needed.
What are the Interest Rates and Fees for the Parent PLUS Loan?
The interest rate for Parent PLUS Loans at Ohio University is fixed at 6.28%, as of the 2021-2022 academic year. There is also a loan origination fee of 4.228% that is deducted from the loan amount at disbursement.
Parent PLUS Loan Ohio University Table
Loan Type |
Interest Rate |
Loan Limit (per academic year) |
|---|---|---|
Parent PLUS Loan |
6.28% |
Cost of attendance |
FAQs
What happens if I am denied a Parent PLUS Loan?
If you are denied a Parent PLUS Loan, your child will become eligible for additional unsubsidized Stafford Loans. The student may also apply for private student loans.
What is the difference between a Parent PLUS Loan and a private student loan?
A Parent PLUS Loan is a federal loan program that offers fixed interest rates and flexible repayment options. Private student loans are offered by individual lenders and may have variable interest rates and stricter repayment terms.
Is the Parent PLUS Loan forgiven?
No, the Parent PLUS Loan is not eligible for loan forgiveness programs.
Can I transfer the Parent PLUS Loan to my child?
No, the Parent PLUS Loan can only be repaid by the parent borrower.
Can I make extra payments on my Parent PLUS Loan?
Yes, you can make extra payments on your Parent PLUS Loan without penalty.
Can I consolidate my Parent PLUS Loan?
Yes, you can consolidate your Parent PLUS Loan with other federal loans through the Direct Consolidation Loan program.
Is there a limit to how much I can borrow with a Parent PLUS Loan?
The maximum amount you can borrow with a Parent PLUS Loan is the cost of attendance minus any other financial aid your child receives.
Can I use a Parent PLUS Loan to pay for graduate school?
No, Parent PLUS Loans are only available for undergraduate students.
What is the repayment term for a Parent PLUS Loan?
The standard repayment term for a Parent PLUS Loan is 10 years, but you may qualify for an extended repayment plan.
Can I pause my Parent PLUS Loan payments if I experience financial hardship?
Yes, you may qualify for a deferment or forbearance if you experience financial hardship.
What happens if I die before repaying my Parent PLUS Loan?
If the parent borrower dies, the remaining balance on the Parent PLUS Loan may be discharged.
What happens if my child drops out of college?
If your child drops out of college, you will still be responsible for repaying the Parent PLUS Loan. You may be able to request a deferment or forbearance if your child returns to school.
What happens if my child doesn’t use all of the money from the Parent PLUS Loan?
If your child doesn’t use all of the money from the Parent PLUS Loan, the unused funds will be returned to the lender and applied to the outstanding balance of the loan.
Conclusion
The Parent PLUS Loan at Ohio University is an excellent way for parents to help their children finance their college education. With a fixed interest rate and flexible repayment options, this loan program can make a college education more affordable for families. By following the steps outlined in this guide, you can successfully apply for the Parent PLUS Loan and ensure that your child has the financial means to achieve their academic goals.
Don’t let the cost of college hold your child back. Apply for the Parent PLUS Loan at Ohio University today!
Closing Disclaimer
While we have made every effort to ensure the accuracy and completeness of the information in this guide, it is intended only as a general guide and should not be considered legal, financial, or tax advice. You should consult with your own professionals before making any decisions regarding your financial situation.