Federal Direct Graduate PLUS loans are offered through the U.S. Department of Education's Federal Direct Loan Program and are available to graduate and professional students. A Graduate PLUS Loan requires a separate application, and credit approval by the Department of Education. The student borrower must also sign a Master Promissory Note (MPN) in order to receive the Federal Direct Graduate PLUS loan.
Borrower Benefits
- Interest rate reduction of .25 percent for borrowers who make their payments using the Electronic Debit Account (EDA) program.
Application Process
- The student borrower must:
- Have a Free Application for Federal Student Aid (FAFSA) on file for the 2012-2013 academic year.
- Pursue a graduate or professional degree.
- Be enrolled at least half-time and meet all eligibility requirements (including Satisfactory Academic Progress standards),
- Complete and submit a Federal Direct Graduate PLUS Loan application available at our office or on our website.
- If the credit is approved, the student borrower must have a signed Master Promissory Note (MPN) on file with the Department of Education before loan funds may be disbursed.
- If the credit is denied, the borrower may receive a Graduate PLUS loan if:
- The borrower is able to obtain an approved endorser. An endorser is someone with a viable credit history who agrees to repay the loan if the borrower does not repay it.
- The borrower is able to receive a credit override approval after submitting new credit information to Direct Loans.
Loan Details
- The interest rate for Graduate PLUS loans under the Direct Loan program is 7.9% with an origination fee of 4%.
- The loan is unsubsidized, meaning that interest begins accruing immediately upon the loan's first disbursement.
- Graduate PLUS loans cannot be processed after the final day of the term in which the student was enrolled. Students are strongly encouraged to complete the application for this type of loan and clear any holds that they may have on their financial aid accounts well in advance of the end of the term to ensure adequate processing time.
- Deferral of repayment until six months after the student graduates or drops below half- time enrollment is available if the student completes the Direct Loan In School At Least Half- Time Deferment Form.
- Graduate PLUS loans may be processed for an amount up to the Cost of Attendance, minus other financial aid the student is receiving.
