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Federal Grad PLUS Loan

The Federal Direct Grad PLUS Loan is for graduate students enrolled in at least half-time hours. In order to apply for a Grad PLUS loan, you must file the Free Application for Federal Student Aid (FAFSA). A graduate student can borrow the total estimated cost of attendance less the financial aid the student receives for the academic year. The Grad PLUS Application and Master Promissory Note are available online at

Interest Rates

The interest rate for the 2015-2016 year will be 6.84%. Interest will accrue at the time of the first disbursement on the loan.

Loan Fees

The U.S. Department of Education charges a loan origination fee for processing your loan.

Prior to October 1, 2015             As of October 1, 2015

4.292% 4.272%   

Credit Checks

In order to borrow a Grad PLUS Loan, the student has to pass a credit check.

If you do not pass the credit check, there are two options available to you.

  1. You can work with Applicant Services at 1-800-557-7394 if you believe there was an error made on your credit check.

  2. You can obtain a creditworthy endorser. The endorser would need to pass the credit check, agree to endorse the promissory note, and agree to repay the loan if you would fail to do so.


Disbursements are applied to your university bill, i.e., student account. Refunds resulting from the Grad PLUS Loan will be direct deposited into the student’s personal account, if signed up for direct deposit or a paper check, will be issued.


Initial Grad PLUS Loan repayment begins 60 days after the final disbursement of the loan. There is no grace period for Direct Grad PLUS Loans. You can postpone payments while you are in school. As long as you are enrolled at least half-time, you will be eligible for an in-school deferment. This should be done automatically by Direct Loans. You can choose the Standard, Extended, or Graduated Repayment Plan. Interest begins to accumulate at the time the first disbursement is made. If you are experiencing difficulty making the scheduled payment, you should contact the loan servicer.

Student Eligibility

A student must meet the following requirements before any Grad PLUS Loan proceeds can be disbursed

  • Enrolled at least half time (five credit hours)

  • Enrolled in a degree-seeking program

  • Making Satisfactory Academic Progress (SAP)