Information on the Direct PLUS Loan
Direct PLUS Loan
Once Direct Loan funds are exhausted, the next financing option would be the Direct PLUS Loan for parents of dependent undergraduate students and for graduate students. The interest rate for the Parent Direct PLUS is fixed at 7.21%. There is a loan fee of 4.292% of the principal amount charged for each Direct PLUS Loan that you borrow.
Direct PLUS Loan for Parents is a loan in the parent's name for dependent undergraduate students enrolled at least half-time in a degree program. It is not necessary to demonstrate financial need in order to receive a PLUS Loan. Approval for the PLUS Loan is based on good credit. The maximum PLUS Loan amount that parents can borrow on a yearly basis is the cost of education minus any other financial aid received.
Direct Graduate PLUS Loan is a loan in the student's name for graduate and professional studies.The interest rate for the Graduate PLUS Loan is 7.21%. In order for a graduate or professional student to receive a Federal PLUS Loan they must file the Free Application for Federal Student Aid (FAFSA). Filing the FAFSA enables the student to be considered for unsubsidized Federal Direct Loan. Approval for the PLUS Loan is based on good credit and the student being enrolled at least half-time in a graduate or professional degree program.
To apply for the Direct PLUS Loan or the Graduate Direct PLUS Loan, you need to:
- File the Free Application for Federal Student Aid (FAFSA)
- Sign in at studentloans.gov using your FAFSA pin #
- Choose REQUEST A PLUS LOAN
- Choose either PARENT PLUS (parents of dependent undergraduate students) or GRADUATE PLUS (graduate students only)
In addition to this request form, if you are borrowing a Direct PLUS Loan for the first time, a Master Promissory Note (MPN) must be signed. This can be signed electronically with your federal PIN. The federal PIN is the same you used when you signed the FAFSA. If you do not already have a PIN, you can go to www.pin.ed.gov.