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Federal Direct Parent PLUS Loan

The Federal Direct 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 Direct Parent PLUS Loan is a form of aid that must be repaid by the parent borrower.


Federal Direct Parent PLUS Loan Overview

How to Apply

  1. Student (parent applicant's child) must complete the Free Application for Federal Student Aid (FAFSA).
  2. Once the student receives a Financial Aid Award, the parent applicant must complete the PLUS Loan Request Process annually.
  3. Parent applicant must complete a Federal Direct Parent PLUS Loan Master Promissory Note (MPN).

Interest Rate

For loans first disbursed on or after July 1, 2017 and prior to June 30, 2018: 7.00% fixed

For loans first disbursed on or after July 1, 2018 and prior to June 30, 2019: 7.6% fixed

Additional Loan Fees

Origination Fee:

For loans first disbursed between October 1, 2017 and before October 1, 2018    4.264%

For loans first disbursed between October 1, 2018 and before October 1, 2019  4.248%

Credit Requirements

The borrower must be credit-worthy. Credit denied applicants who would like to attempt to resolve the denial or apply for the Federal Direct Parent PLUS Loan with a credit-worthy endorser (co-borrower) can contact DL Applicant Services by calling (800) 557-7394.

NOTE: If a parent applicant is credit denied, the student can receive additional Federal Direct Stafford Unsubsidized Loan funds. Parents can complete a Parent PLUS Preapproval Form for Federal Direct PLUS Loan Processing to determine creditworthiness. If any parent applicant is credit approved, then the student is not eligible for the additional Direct Stafford Loan funds. Credit decisions are valid for only 90 days, therefore a credit check should be completed no sooner than 90 days prior to the student's start date. For more information, see Credit Checks.

Annual Loan Maximums

Cost less aid. Cost information can be viewed through My Banner.

Aggregate Loan Maximum


Enrollment Requirement

Student must be enrolled at least half-time (at least 6 undergraduate credit hours).


For a given term, loan funds are disbursed beginning on Monday of week three. Funds are applied directly to the student's account. If the student's account is paid in full and any Federal Direct Parent PLUS Loan funds remain, the parent borrower will receive a refund. For additional information contact the Business Office at businessoffice@otterbein.edu or 614.823.1150.

Minimum Monthly Payment


Maximum Repayment Period

10 to 25 years depending upon your repayment plan. Visit the U.S. Department of Education's Federal Direct Loans website for more information.


A Federal Direct Parent PLUS Loan borrower may receive a deferment while the student is enrolled on at least a half-time basis.  The borrower must indicate this on the PLUS application.  Deferment/forbearance may be available under other circumstances.*

Credit Checks
Parent(s) may prefer the Office of Financial Aid review their creditworthiness without applying for the PLUS Loan so the student can be considered for additional Unsubsidized Stafford Loan funds. To do so, the parent can complete a Parent PLUS Pre-Approval Form and return the completed form to the Office of Financial Aid.

Credit decisions are only valid for 180 days. To best ensure a valid credit decision, the Office of Financial Aid will accept credit decisions 90 days prior to the student's start date.