Direct PLUS Loans

Federal Direct Parent PLUS Loan

• Borrower is parent of a dependent undergraduate student
• The loan is in the parent's name for the life of the loan
• Can be discharged in the event of death or disability
• Parent must pass a credit check or parent can add a credit-worthy endorser (co-signer)
• If parent does not pass credit check or choose an endorser, student can get additional Direct Unsubsidized Loan
• Can borrow up to the cost of education less any other aid received
• 7.6% fixed interest rate for 18-19 academic year
• Federally mandated 4.248% fee subtracted upon disbursement for 18-19 year
• Repayment begins 60 days after loan is fully disbursed but payment can be deferred while student is enrolled. Parent must contact Direct Loan Servicing at 800-848-0979 to request deferment or indicate preference on loan application.
• Be sure to compare the Direct PLUS Loan with the Private Student Loans to see which option best suites your situation and family. For borrowers with a 750 credit score or higher, a no fee, private loan could be more cost effective. Please compare your options carefully.

Steps to Receive a Federal Direct Parent PLUS Loan:

1. File the FAFSA. 
2. Apply for a PLUS Loan at https://studentaid.gov. Student Financial Services will be notified within 1-3 business days.
3. Complete Federal Direct  PLUS Master Promissory Note (MPN) by logging into  https://studentaid.gov 

• PLUS MPN Instructions (.PDF)

Federal Direct Graduate PLUS Loan

• Borrower is a student in a graduate program
• Can be discharged in the event of death or disability
• Student must pass a credit check
• Can borrow up to the cost of education less any other aid received
• 7.6% fixed interest rate for 18-19 year
• Federally mandated 4.248% fee subtracted upon disbursement for 18-19 year
• Automatic deferment for Federal Direct Grad PLUS borrower while enrolled at least half time
• Can be consolidated at fixed rate with other federal loans (see https://studentaid.gov for details)
• Be sure to compare Graduate PLUS Loans with Private Loans to see which option best suites your situation and family. For borrowers with a 750 credit score or higher, a no fee, private loan could be more cost effective. Please compare your options carefully.

Steps to Receive a Federal Direct Graduate PLUS Loan:

1. File the FAFSA.
2. Apply for the PLUS Loan at https://studentaid.gov.
3. Complete Federal Direct Graduate PLUS Master Promissory Note (MPN) by logging into  https://studentaid.gov 
4. Complete Federal Direct Graduate PLUS Entrance Counseling by logging into  https://studentaid.gov 

For helpful loan repayment calculators and other helpful resources, visit www.youcandealwithit.com