Direct PLUS Loans

Federal Direct PLUS Loans are fixed-rate loans provided by the Department of Education to graduate students and parents of dependent undergraduate students. The lender must perform a minimal check of the borrower’s credit history. There is a 10-year repayment schedule and deferment options are available. For graduate students, payments are automatically deferred while in school.  All Undergraduate and Graduate students MUST file a FAFSA in order for their eligibility to be determined.

How to Apply

Parent Borrowers:

  1. Go to https://studentaid.gov and log in using the parent’s name, SSN, Date of Birth, and FSA ID.
  2. Choose option Request a PLUS Loan (the Request a PLUS Loan process will determine whether you are approved or denied)
  3. If you are approved, you must choose the option Complete Master Promissory Note (new borrowers and borrowers who use an endorser need to complete the MPN)

Graduate Student Borrowers:

Go to https://studentaid.gov and log in using the graduate student’s name, SSN, Date of Birth, and FSA ID.

  1. Choose option Request a PLUS Loan (the Request a PLUS Loan process will determine whether you are approved or denied)
  2. If you are approved, you must choose the option Complete Master Promissory Note (new borrowers and borrowers who use an endorser need to complete the MPN)

Entrance Counseling

Entrance counseling is required ONLY for the Grad-PLUS Loan. Parents of undergraduate dependent students do not need to complete entrance counseling.

Interest Rates & Fees

PLUS Loans with a first disbursement date on or after July 1, 2020 and before July 1, 2021 will have an interest rate of 5.30%.

PLUS Loans with a first disbursement date on or after July 1, 2019 and before July 1, 2020 will have an interest rate of 7.08%.

The origination fee for a Federal Direct PLUS Loan is 4.236% on or after October 1, 2019 and before October 1, 2020.

Federal Direct PLUS Loan – Endorser Process

If denied for the Federal Direct Parent PLUS Loan or Graduate PLUS Loan, a borrower can obtain an endorser for the Federal Direct PLUS Loan. An endorser is someone who agrees to endorse a PLUS Loan, similar to a co-signer, and will repay the PLUS Loan if the borrower is unable to do so. The student cannot serve as an endorser for their parent for a Federal Direct Parent PLUS Loan. Upon credit denial, an application ID number will be provided to the borrower (parent or graduate student). The endorser will need the PLUS Application ID number of the borrower’s credit denial in order to endorse the PLUS Loan.

 

Endorser Process

  1. The endorser must obtain the application ID number of the borrower’s credit denial.
  2. The endorser needs to create a Federal Student Aid ID (username and password) at www.studentaid.gov
  3. The endorser signs into www.studentaid.gov and selects, “Endorse a PLUS Loan” under “Apply for Aid” to complete the process or click here.

 

Borrower Process

  1. The borrower (NOT THE ENDORSER) will need to complete a PLUS Master Promissory Note.  Though MPNs allow for multiple year borrowing under the same terms, when an endorser is used, the MPN is used for that loan only.  Therefore, a borrower who has previously received a PLUS Loan with or without an endorser will need to complete a new PLUS MPN for this endorsed loan.

When the borrower is initially denied and then approved with an endorser, the borrower must complete the PLUS Counseling before the PLUS Loan can be disbursed.  This counseling is a review of loan and repayment obligations, and is available at www.studentaid.gov

Parent PLUS Loan Denial

(for parents of undergraduate dependent students)

If a parent is denied a Parent Direct PLUS Loan, the student may be eligible for an additional Unsubsidized Direct Loan up to $4,000 as a freshman and sophomore, and $5,000 as a junior and senior.  Additional Unsubsidized Direct Loan eligibility will be posted to the student’s award letter when we get confirmation of the denial.