What are Direct Grad PLUS Loans?
The Federal Direct t Graduate PLUS loan is borrowed by graduate students to fund the cost of their education not covered by other forms of financial assistance. The Federal Direct Grad PLUS Loan is funded directly by the federal government under the William D Ford Federal Direct Loan Program and will be available to PLU graduate students beginning with the 2010-11 academic year. Grad PLUS loans in prior years were funded through commercial lenders under the Federal Family Education Loan Program (FFELP).
Interest rate on the Federal Direct Grad PLUS Loan program is a fixed 7.9%. There are no annual borrowing limits set by the federal government, but eligibility is limited to the cost of attendance minus other financial aid received during the loan period.
The interest rate on this loan is fixed at 7.9 percent and repayment begins six months after graduation or when student's enrollment falls below half time.
What are the loan fees?
The Federal Direct PLUS Loans have a 4% origination fee assessed against the amount borrowed. Two and one half percent (2.5%) is deducted from the loan prior to its disbursement onto the student's account. The remaining 1.5% fee is a rebate to the borrower, but will be added to the loan balance during loan repayment if the borrower fails to make the first 12 monthly payments on time. Please note change for 2013-14: The 4% origination fee that is deducted from your loan proceeds prior to its disbursement will increase to 4.204% for the next academic year.
Who is eligible?
- Either a US citizen, U.S. national or eligible non-resident
- Enrolled or accepted for enrollment at least half time in a PLU graduate program (This does NOT include post graduate certificate programs)
- Not in default on any student loan or owe a refund to any education grant program
- Completed the Free Application for Federal Student Aid (FAFSA) for the applicable aid year and have the results sent to PLU
- First time borrowers for the Federal Direct Grad PLUS must complete an Entrance Interview, which can be completed on-line at Direct Loan web site.
- Not on record with an adverse credit history as defined by the Department of Education.
How do I apply and how much can I borrow?
Upon acceptance into a PLU graduate program and submitting the Free Application for Federal Student Aid (FAFSA), the PLU Financial Aid Office will send you an offer of financial aid. If your other forms of financial assistance do not cover the entire cost of education (based on a standard cost of attendance we use), the Graduate PLUS loan will be automatically awarded to fill that gap. Loans are awarded on an annual basis and you must re-submit the FAFSA each year to continue receiving the loan.
After you have accepted your Direct Grad PLUS Loan on your financial aid award letter, the financial aid office will create your loan record with the U.S. Department of Education. Once you complete the master promissory note and Entrance interview on the U.S. Department of Education web site, your loan proceeds will be post onto your student account. If your loan amount exceeds your university charges and creates a credit balance on your account, you may request the balance to be issued to you in the form of a check by completing a Refund Request Form at the Student Services Center. Refund checks are produced weekly and are available every Friday at the Business Office.