The Federal Direct PLUS (Parent Loan for Undergraduate Students) or Grad PLUS is an available option for consideration if additional financial aid resources are needed. It is a government-insured, credit-based fixed interest-rate loan with repayment and deferment options. The parent of a dependent undergraduate student OR a graduate (masters/doctoral) student may apply. It is not based on income or financial need, and parents and graduate students may borrow up to the Cost of Attendance minus any financial aid received by the student. Students must be enrolled at least half time each term, and approval is based on the credit-worthiness of the borrower. Borrowers must also be U.S. Citizens or eligible non-citizens.
A parent or graduate student may submit a change request directly to the Office of Financial Aid and Scholarships using a PLUS Change Form if there are changes requested (i.e. decreasing loan amount, address change, etc.).
Parent PLUS Loans
The Federal Parent PLUS Loan is available to parents (including adoptive or stepparents) of dependent undergraduate students. To apply, the student must complete a FAFSA, and the parent applies using the electronic PLUS Loan application directly on the Department of Education website.
If the parent borrower is credit-denied, he/she may choose to reapply with a credit worthy co-signer/endorser OR the dependent student may be eligible to borrow additional Unsubsidized Stafford loan funds using the Loan Adjustment form.
Graduate PLUS Loans
The Federal Graduate PLUS Loan is only available to graduate students (master’s and doctoral students). The Graduate PLUS loan is meant to supplement the funding from the Direct Unsubsidized Loan program, and should only be requested if you have exhausted your Direct Loan eligibility for the year and still have remaining expenses and housing in your Cost of Attendance budget.
A graduate student may apply using the electronic Graduate PLUS Loan application directly on the Department of Education site.
Requirements
The Federal Parent PLUS Loan and the Graduate PLUS Loan, both require the borrower and endorser to complete a Master Promissory Note (MPN), also known as a Loan Agreement, prior to disbursement of funds. Additionally, all first time Graduate PLUS Loan borrowers must complete an Entrance Counseling and select the graduate/professional student option.
To complete the Loan Agreement for a PLUS Loan (MPN).
To complete the Loan Agreement for a Graduate PLUS Loan (MPN).
If approved, funding will be awarded and disbursed by the Office of Financial Aid and Scholarships.
Interest Rates and Origination Fee
The interest rates are fixed for the life of a loan. The Interest Rate Chart reflects the interest rates based on loan period for which the loan was borrowed. Borrowers will pay an origination fee, deducted proportionately from each loan disbursement.
Disbursement
Any amount borrowed in excess of university charges through the Parent PLUS Loan will be issued on an academic term basis as a refund to the student or parent, depending on whom the parent designates at time of application.
Funds issued directly to parents are mailed to the parent’s permanent address listed on the PLUS application.
Repayment
Repayment of the Federal PLUS Loan begins 60 days after the loan is fully disbursed, and repayment periods can range from 10 to 25 years depending on repayment plan.
Repayment of the principal amount may be deferred if the student maintains a minimum of half-time enrollment. Interest will accrue and must be paid monthly. The initial deferment request may be made at time of application or by contacting the loan servicer at a later date. Federal PLUS Loans are not transferable to the students.
There is no grace period for the Graduate PLUS Loan; however, repayment of principal is deferred while the student borrower is enrolled at least half-time. Interest will accrue and may be paid monthly.
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