Federal Direct Graduate PLUS Loan
The Federal Direct Graduate PLUS Loan is a credit-based government-sponsored fixed interest loan. A FAFSA is required to obtain a Federal Direct Graduate PLUS Loan. Graduate students must utilize their Direct Subsidized/Unsubsidized Loan eligibility prior to applying for a Direct Graduate PLUS Loan. A credit check is required for approval of this loan.
Loan Limits: Cost of attendance minus other financial aid. The amount borrowed may replace the expected student contribution.
Interest Rate: Fixed at 7.9% with interest beginning to accrue upon disbursement.
Loan Fees: The Federal Direct Graduate PLUS loan has a 4% origination fee with an up-front rebate of 1.5%, for a net origination fee of 2.5% which is deducted from the loan proceeds. Once the borrower enters repayment, they are eligible to keep the rebate if they make their first 12 payments on time. If they fail to make all 12 payments on time, the rebate fee is capitalized into the principal of the outstanding loan balance.
Loan Eligibility: Borrower must be a U.S. citizen or eligible non-citizen and have a satisfactory credit rating. They must be enrolled at least half-time, not be in default on a prior federal loan, or owe a refund on any federal student aid program.
Disbursement Terms: In a typical academic year, Federal Direct Loans are disbursed in two installments. When the academic period is for one semester or for the summer term, one disbursement is permitted at the beginning of the term. During the regular academic year (Fall/Spring Semesters) funds cannot disburse more than 10 days prior to the first day of class. For the summer term, funds cannot disburse more than 5 days prior to the first day of class.
Grace Period: Repayment typically begins 60 days after the final disbursement of the loan. Borrowers may request an in-school deferment with the Department of Education. If the deferment is approved, repayment will begin 6 months after the borrower completes their program. If they drop below half-time enrollment or withdraw from the University, the borrower will enter into their 6 month grace period prior to repayment of their loan.