Direct PLUS/GRAD PLUS Loans
What are Direct PLUS Loans?
Federal Direct PLUS Loans are available to graduate students and to parents of
dependent undergraduate students. PLUS borrowers generally will need to
pass a credit check to determine eligibility. Direct PLUS Loan eligibility is not
based on need. The student must be enrolled at least half-time. The
interest rate is set at a
fixed interest rate of 7.9%. If a parent is unable to borrow a Direct PLUS, their
dependent student may be eligible to borrow additional funds under the
Federal Direct Unsubsidized Loan Program.
How do I apply?
Borrowers must complete and submit a Federal Direct Parent PLUS Application and continue by completing a Direct PLUS Loan Master Promissory Note, available
electronically at the Federal Direct Loan website.
Apply for a Direct PLUS Parent Loan or a Direct PLUS Graduate Loan.
How much can I borrow?
The yearly limit on a Direct PLUS Loan is equal to the student's cost of
attendance minus any other financial aid received.
When do I begin repaying a Direct PLUS Loan?
Generally, repayment must begin within 60 days after the loan is fully
disbursed. There is no grace period for these loans. This means interest begins
to accumulate at the time the first disbursement is made. In school deferment
and forbearance options may be available. For more information please visit www.studentaid.ed.gov.
Who gets the money?
The loan funds are sent directly to the school from the lender. In
most cases, the loan will be disbursed in at least two installments, and no
installment will be greater than half the loan amount. The funds will first be
applied to the student's tuition, fees, room and board, and other school
charges. If any loan funds remain, the borrower will receive the amount as a
refund check. Any remaining loan funds must be used
for education expenses.
