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