Federal Direct PLUS Loans
for Graduate and Professional Students

If you need to borrow funds beyond the Federal Direct Subsidized and/or Unsubsidized Loans offered to you as a graduate or professional student, you may be able to participate in the new Federal Direct PLUS Loan program.

The Graduate PLUS Loan will have a fixed interest rate of 7.9%, and will have an origination fee of 4% deducted at disbursement. A rebate of 1.5% is refunded to student borrowers who make on-time monthly payments, thus reducing the origination fee to 2.5%. No aggregate borrowing limits are imposed other than cost of attendance less other financial aid received.

The Graduate PLUS Loan is taken out in the student’s name and is based on borrower credit. While credit checks are required, credit criteria are less restrictive than those for most private student loans available through for-profit lenders. If you do not meet the credit requirements, you may still qualify for the loan if you have someone who does meet the requirements to endorse the loan. An endorser, unlike a cosigner, is not liable for Graduate PLUS Loan debt if you become permanently disabled or die. Additional information about the Graduate PLUS Loan program is available in the ‘Questions and Answers About PLUS Loans for Graduate and Professional Students’ flyer from the U.S. Department of Education.

To apply for the Graduate PLUS Loan, you must first complete the FAFSA. You must first be offered the Subsidized and/or Unsubsidized Direct Loans, and you must accept, reduce, or decline these loans prior to requesting the Graduate PLUS Loan.

Before this loan can be disbursed, you must complete a separate Master Promissory Note (MPN) for the Graduate PLUS Loan using your U.S. Department of Education-issued PIN. If you do not have your PIN, you can request one via the official PIN Web site (http://www.pin.ed.gov/). Please be sure to carefully read all of the terms and conditions of this loan before you sign, and complete Entrance Counseling if you are a first-time Graduate Plus Loan borrower.