logo.png

Federal Direct Graduate PLUS Loan

The Higher Education Reconciliation Act of 2005 (HERA) provided for eligible graduate and professional students to receive Federal Direct PLUS Loans. Direct PLUS Loans are loans made to eligible borrowers for up to the cost of attendance minus other estimated financial assistance each academic year.

Eligibility
You must be enrolled at least half-time as a matriculated graduate student in a graduate or professional program, and you must meet all of the other general eligibility requirements for the Federal Student Aid programs. In addition, you must not have an adverse credit history.

Steps to Apply

  1. You must complete the Free Application for Federal Student Aid (FAFSA) and receive a financial aid offer. You must accept all Direct Subsidized and Unsubsidized Student Loans offered before you will be considered for Graduate PLUS loan funding.
  2. You must obtain, complete, and submit a Federal Direct Graduate PLUS Loan Application and submit it to the Financial Aid Services Office (SW-109). This application indicates the loan amount you are requesting, and authorizes us to request a credit check.
  3. Upon receipt of this application, a credit check will be done through the Department of Education.
  4. If approved, you must complete a Federal Direct PLUS Loan Application and Master Promissory Note (PLUS MPN) online. From the main webpage, click on Complete New MPN for Student Loans, and choose Graduate PLUS. You will need your federally assigned PIN to complete the MPN online.
  5. If denied, there are two options: (a) request a review of the credit check due to inaccurate information on the credit report and provide supporting document to the Direct Loan Servicer or (b) obtain an endorser signature (the endorser must pass a credit check for the loan to be approved). Contact Applicant Services for Direct Loan at 1-800-557-7394

Please note: No money will be disbursed until the credit check and MPN processes are complete.

Terms and Repayment Information
This interest rate is a fixed 7.9%. This means the interest rate will not change throughout the life of the loan. The Department of Education charges a loan fee of 4% of the principal amount of each Direct PLUS Loan. The fee is deducted proportionately from each disbursement of your loan. There is an up-front interest rebate repayment incentive (equal to 1.5% of the loan principal amount).

Your first payment will be due within 60 days after the loan is fully disbursed. This will generally be while you are still in school. There is no grace period. However, while you are enrolled in school on at least a half-time basis, you are eligible for an in-school deferment that allows you to postpone payments on your loan until you graduate or drop below half-time status. You must apply for the in-school deferment; it is not granted automatically. Interest does accrue during periods of deferment. For frequently asked questions and answers about the Graduate PLUS Loan Program, click here. For additional questions on terms, repayment options, and/or consolidation, contact the Direct Loan Servicing Center at 1-800-848-0979 or online at www.dl.ed.gov.

smmag1.jpg