Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan is a credit-based government-sponsored fixed-interest loan. A Free Application for Federal Student Aid (FAFSA) and a credit check are required to obtain this loan. Graduate students must use their Direct Unsubsidized Loan eligibility prior to applying for a Direct Graduate PLUS Loan.

Recipients of a Federal Direct Loan are required to complete entrance counseling before the funds are disbursed. Students must also complete exit counseling upon dropping below half-time status, taking a leave of absence, withdrawing or graduating.

Special Announcement

Effective March 1, 2013, under the terms of the Budget Control Act of 2011 the federal government imposed across-the-board budget cuts that affect higher education programs, including Federal Direct Loans.

Under sequestration, loan fees for 2014 have been increased from 4.00 to 4.204% for Direct PLUS Loans. The Department of Education is working to modify their systems to handle this change. Until the Department is able to process loans with the higher fee, we will originate federal loans at the lower rate. We cannot predict when the Department of Education will have their systems updated, nor do we know whether or not the Department will ask schools to retroactively adjust the fees. The Department of Education has asked all schools to continue processing loans using the old rates.

Loan Limits

Cost of attendance minus other financial aid. The amount borrowed may replace the expected student contribution.  

Interest Rate

Fixed at 7.9 percent with interest beginning to accrue upon disbursement. 

Loan Fees

The Federal Direct Graduate PLUS loan has a 4.204 percent origination fee.

Loan Eligibility

The borrower must be a U.S. citizen or eligible non-citizen and have a satisfactory credit rating. He or she must be enrolled at least half-time, not be in default on a prior federal loan, or owe a refund on any federal student aid program. 

Disbursement Terms

In a typical academic year, Federal Direct Loans are disbursed in two installments. When the academic period is for one semester or for the summer term, one disbursement is permitted at the beginning of the term. During the regular academic year (fall/spring semesters) funds cannot disburse more than 10 days prior to the first day of class. For the summer term, funds cannot disburse more than five days prior to the first day of class. 

Grace Period

Repayment typically begins 60 days after the final disbursement of the loan. Borrowers may request an in-school deferment with the U.S. Department of Education. If the deferment is approved, repayment will begin six months after the borrower completes their program. If the student drops below half-time enrollment or withdraw from the university, the borrower will enter into six-month grace period prior to repayment of their loan.

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