Federal Direct Graduate PLUS Loan

The Deficit Reduction Act of 2005 made the Federal Direct PLUS Loan available to Graduate students. Previously, the Federal Direct PLUS Loan was only available to parents of undergraduate students. Graduate students are eligible to apply for the Direct Graduate PLUS Loan. Please note that only the (Graduate) student is eligible to be the borrower for this loan, the parent of the (Graduate) student can not borrow on behalf of the student.

Eligibility

• The student must be enrolled at least halftime in a graduate degree program.
• The student must have completed and submitted a FAFSA for the appropriate year.
• The student must have applied for the Federal Direct Stafford Loan (Subsidized and Unsubsidized) and be considered for the maximum annual loan limit.
• The student must complete and pass a credit check (no adverse credit).

Annual Limit

• The student may borrow the Cost of Attendance minus Other Financial Aid (including the maximum Federal Direct Subsidized and Unsubsidized Stafford Loan) received during the loan period.

Interest Rate

• The interest rate will be fixed at 7.9%

Fees

• A 4 % loan fee is charged with a 1.5% rebate. The rebate is maintained at repayment if the borrower make the loan payments on time.

Repayment

• Repayment begins within 60 days after the final disbursement of each loan. In-school deferments are available to eligible students.