Direct Plus Loans

The Direct PLUS Loan is available to graduate students and parents of dependent undergraduate students. Direct PLUS Loan is part of the Direct Loan program in which the U.S. Department of Education is the lender. Unlike other loans in the program, Direct PLUS Loans require a borrower to have no adverse credit history to qualify. The maximum loan amount a student can receive is determined by the student's cost of attendance minus any other financial aid received. Dependent undergraduate students whose parents are denied a Direct PLUS Loan will receive up to $4000 in additional Direct Unsubsidized Loan.

Current interest rate for Direct PLUS Loans

Current loan fee for Direct PLUS Loans

PLUS loans will not be added to student accounts until all other aid has been awarded first. Some students will automatically receive a Direct PLUS Loan on their award, however, in order to qualify for the loan, the application process must still be completed in order to receive the funds.

After all school charges have been paid, if any loan funds are remaining they refund will be processed to either the parent or student. Parents have the option to have to refund sent to them instead of the student. This information is collected during the application process.

How to Apply

Unlike Direct Subsidized and Unsubsidized Loans, the Direct PLUS Loan requires a separate application in order to be considered. The application is available online at www.studentloans.gov and selecting Complete PLUS Request Process. Usually, the PLUS application will provide you with instant results for approval or denial.

If approved graduate students and parents of undergraduate dependent students will also need to complete a Master Promissory Note (MPN) online at www.studentloans.gov. Graduate students will also need to complete Entrance Counseling before receiving a PLUS loan.

Application Tips

The beginning of the application asks for the borrowers information. If you are a parent, this is asking for parent information because the parent is considered the borrower for a Direct PLUS Loan. The application will ask you for your student's information later in the process. If a parent does not have a PIN (same one used on the FAFSA), they will need to apply for one at www.pin.ed.gov.

Applications that are not completed correctly cannot be processed and a new PLUS application will need to be completed.

Repayment

Direct PLUS Loans enter repayment once the loan is fully disbursed. Graduate students enrolled in at least half-time and for an additional six months after ceasing enrollment of at least half-time will have their loans placed into deferment.

Parent borrowers wanting to request their loan be placed in deferment while their student is enrolled in at least half-time and for an additional six months after ceasing enrollment of at least half-time will need to contact their loan servicer.

Loans placed in deferment will still accrue interest. Parents and students may chose to pay the accrued interest or allow the interest to capitalize until the deferment ends.