Parents of dependent students can borrow a Direct PLUS Loan to help pay educational expenses. The student must be enrolled at least half time in an eligible program.
The parent must not have adverse credit to qualify. The school will receive notification of the credit check within 24 hours. An endorser (co-signer) can be added to the loan to meet qualifications for approval. The student must have a complete financial aid file and the parent must have a signed Master Promissory Note before loans are disbursed.
A parent can borrow up to the maximum of the cost of attendance minus other aid. When requesting a PLUS loan, you will have an option for maximum loan or request your own loan amount. Leaving the request unknown will require a parent after approval to send a loan change form with the amount requested.
Parent PLUS Direct Loan Procedure
Step 1: Student makes a decision on their Loans on www.otis.edu/selfservice
Step 2: Log into www.studentloans.gov
- Click on "Request a Direct PLUS Loan" to apply for the PLUS loan. Please select "Parent PLUS". This will generate a credit check and complete the Master Promissory Note.
The interest rate on a Parent Direct PLUS loan is a fixed 7.21% with a fee of 4.288%. The parent has the option at the time of pre-approval for repayment while the student is in school, after graduation or six months after graduation. Interest begins to accumulate at the time the first disbursement is made.
A loan repayment calculator helps in finding the right repayment term for you and your family. Repayment can start after the final disbursement of the academic year, after the student leaves school or drop below half time or 6 months after a student leaves school or drop below half time.
Parents are responsible for repayment of the loan.