Federal Direct Parent PLUS Loans

A parent may be eligible to borrow if the dependent student meets the following requirements:

• Is eligible to receive federal financial aid
• Is enrolled in an eligible degree-seeking program or certain certificate programs
• Has educational costs not covered by other types of financial aid
• Is enrolled in, attends and maintains at least 6 credit hours during the semester
• Has shown an ability to benefit
• Is making Satisfactory Academic Progress (SAP) according to the standards established by federal regulations and Owens Community College.

Review Eligibility Requirements

In addition, the parent borrower must meet the following requirements:

• Is a U.S. citizen, national, permanent resident or other eligible non-citizen
• Is not in default on any federal student loan with the U.S. Department of Education or another institution, and does not owe a grant overpayment
• Does not have an adverse credit history. The U.S. Department of Education establishes credit guidelines in accordance with federal regulations
• If a parent borrower has previously borrowed a Federal Direct Loan or Federal Direct Parent or Graduate PLUS Loan on which collection activity has ceased or which has been cancelled due to total and permanent disability, or if the federal government holds a judgment lien on the borrower’s property, please check with the Student Service Center regarding eligibility issues

Individuals who may request the Federal Direct Parent PLUS loan are:

• A parent: the student’s biological, adoptive or state-designated mother or father
• A stepparent: the spouse of a parent who has remarried, if their income and assets must be reported on the student’s FAFSA®

A legal guardian is not considered a parent for financial aid purposes and may not request a Federal Direct Parent PLUS loan.

The parent completes a Federal Direct Parent PLUS Request and Master Promissory Note at StudentAid.gov. Directions for completing this form are available in the Federal Direct Parent PLUS Loan Application Instructions (PDF).

The Federal Direct Parent PLUS Loan can only be processed until 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.

For loan funds to be disbursed, the parent’s signed, completed Federal Direct Parent PLUS Loan Master Promissory Note (MPN) must be received by the U.S. Department of Education. Loans will be canceled if Owens does not receive verification of MPN completion within 170 days after the last date of enrollment for the loan period or the end of the spring semester, whichever is earlier.

If the parent would like to cancel all or part of the Federal Direct Parent PLUS Loan, they should email Student Financial Services.

The student completes the Free Application for Federal Student Aid (FAFSA®).

The U.S. Department of Education will review the parent’s credit history.

If the Federal Direct Parent PLUS Loan is denied based on adverse credit, a notice will be sent to the parent. Parents with an adverse credit history who are approved for a PLUS loan based on extenuating circumstances, or who obtain an endorser, must complete Parent PLUS loan counseling.

The Office of Financial Aid calculates loan eligibility in accordance with federal and institutional guidelines. The information is transmitted to the U.S Department of Education.

An award notice is sent to the student’s Owens email account once the loan is processed.

Owens sends the parent’s loan information to the U.S. Department of Education, which is the lender for the Federal Direct Parent PLUS Loan.

The U.S. Department of Education 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 for their records. The specific terms and conditions that apply to a loan will be provided on the disclosure statements and Master Promissory Note.

Once disbursements begin for the semester, Owens will apply the loan funds to the student’s account, provided the student is enrolled in at least 6 credit hours, meets eligibility requirements, and has been verified as attending at least 6 credit hours.

All loan funds are disbursed in at least 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 disbursed to the student in two separate payments during the semester. The second disbursement will be issued when half of the semester has been completed.

Any amount remaining after tuition, fees and authorized charges have been paid will be refunded. If a parent indicates on the Federal Direct Parent PLUS Request that the refund be issued to the student, the student will receive the refund according to the selected refund preference. Otherwise, parents will receive a paper check mailed by the Office of Student Accounts. Please allow approximately ten business days for a refund check to be printed and mailed.

Once the loan has been disbursed, the parent may receive a notice from their loan servicer. The Direct Loan servicer collects payments, processes deferment and forbearance requests, and handles correspondence on behalf of the Federal Direct Loan program.

Parents can also identify their loan servicer by checking StudentAid.gov.

Repayment of the principal and interest begins when the loan is fully disbursed to the institution.

The first payment is generally due within 60 days, or the parent may begin repayment 6 months after the student graduates or is no longer enrolled at least half-time. Contact the PLUS loan servicer for more information.