The Federal Direct Graduate PLUS Loan is an unsubsidized loan for students enrolled in a graduate degree or eligible certificate program. Graduate PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. The FAFSA application is required to be completed to be able to process a Graduate PLUS Loan. The lender is the U.S. Department of Education and you can learn more about this loan, the current interest rate and loan fee through the Federal Direct PLUS Loan Program.
Approval for the Graduate PLUS Loan is based on a student's credit check for adverse credit history and the student being enrolled at least half-time in a graduate degree program. A student can complete a PLUS Request on the Department of Education's website to apply for the Graduate PLUS Loan.
If a student is denied for a Graduate PLUS loan, then the student may:
The variable interest rate is determined July 1 of each year, and is currently capped at 9 percent. Repayment typically begins 30 days after full disbursement of the loan and the student will have 10 years to repay the loan. There are several repayment plans available which can be reviewed at the Federal Student Aid website.
There are a number of advantages in considering the Graduate PLUS loan over a private educational loan. As a responsible borrower, you should decide which loan option best suits your needs. There is no obligation to accept this loan if approved.
First time Direct Loan Graduate PLUS borrowers must complete the following requirements before a loan disbursement will be applied to his/her account.
Step 1: To apply for a Graduate PLUS Loan:
If you are a first-time borrower, then you will need to complete the following:
Step 2: Complete Entrance Counseling
Step 3: Complete a Graduate PLUS MPN
If a student successfully appeals or obtains an endorser, the student borrower is required to additionally complete online credit counseling for PLUS Loan borrowers. The PLUS Credit Counseling will help students understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt.
Complete Online Credit Counseling Only for an Appeal or Endorsed PLUS Loan
*If you do not remember your FSA ID, you can access it online at fsaid.ed.gov