Federal Loans

What is the current interest rate?

View current interest rates on StudentAid.gov

What is the minimum required credit hours?
You must be enrolled at least half-time which is six credits for undergraduate students and five credits for graduate students.

When does the government pay my interest?
You pay all interest charged over the course of your loan term. Interest may be paid periodically or capitalized.

Is there a charge for this loan other than interest?

Yes, Federal Direct PLUS Loans (parent and graduate) are subject to an origination fee. The origination fee is deducted from the gross amount of the loan at the time of disbursement.

For loans originated 10/01/20 - 9/30/21 there is a 4.228% origination fee on all disbursements.

For loans originated 10/01/21 - 9/30/22 there is a 4.228% origination fee on all disbursements.

When do I begin repayment?

Parent PLUS: Federal Direct Parent PLUS loans enter repayment on the date the final disbursement of the loan is made. The first payment is due within 60 days of the last disbursement of the loan. For loans first disbursed on or after July 1, 2008, upon your request, your servicer will grant a deferment on your Direct Parent PLUS Loan that will begin on the date your Direct Parent PLUS Loan enters repayment, and will end on the date the student ceases to be enrolled on at least a half-time basis, or if you request an additional deferment period, six months after the student ceases to be enrolled on at least a half-time basis. During the deferment period, you will not be required to make any payments on your Direct Parent PLUS Loan. However, interest will continue to accrue. You will receive interest statements during the deferment period and may pay the accruing interest at any time. Any interest that you do not pay will be capitalized (added to your loan principal balance) at the end of the deferment period. Capitalization will increase your loan principal amount and the total cost of the loan.

Graduate PLUS: If you are borrowing a Federal Direct Graduate PLUS loan, your loan will be placed into deferment while you are enrolled at least half-time and for an additional six months after you cease to be enrolled at least half-time. If your loan is deferred, interest will accrue on the loan during deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Capitalization will increase your loan principal amount and the total cost of the loan. Your loan servicer will notify you when your first payment is due.

Is there a credit check for PLUS loans?
Yes, parent borrowers of Parent PLUS loans and graduate student borrowers of Graduate PLUS loans are subject to a credit check of adverse credit history by the U.S. Department of Education. No debt to income ratios are applied, and a lack of a credit history is not considered adverse. Learn more about the adverse credit history definition for purposes of qualifying for a Direct PLUS loan. (PDF)

What happens if I apply for/accept a PLUS loan and have been determined to have an adverse credit history?
If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have such a history. An endorser is someone who agrees to repay the loan if you do not. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. You may also be able to appeal your denial with the U.S. Department of Education.

If I document extenuating circumstances or obtain an endorser due to my adverse credit history, must I complete PLUS Credit Counseling?
If you successfully appeal an adverse credit history or obtain an endorser, the borrower must complete PLUS Credit Counseling prior to the Federal Direct PLUS loan being disbursed. PLUS Credit Counseling is an online informational session for PLUS borrowers. Once the PLUS Credit Counseling session is completed, applicants will be provided a financial summary that includes loan balances, income expenses, and repayment plan details based on information provided during the counseling session. Note that PLUS Credit Counseling is only required for applicants found to have an adverse credit history who have appealed their denial or obtained an endorser; it is optional for approved borrowers.

What if I cannot find an endorser or cannot appeal the PLUS denial?
If you are a parent borrower of a Parent PLUS loan found to have adverse credit history but cannot obtain an endorser and cannot appeal the denial, the parent may submit documentation indicating the situation. The dependent student may then receive Direct Unsubsidized Loan funds up to the independent undergraduate student limit for that academic year. If you are a student borrower that was credit denied the Grad PLUS loan, you must obtain an endorser or successfully appeal the denial in order to borrow the loan.

In what order are Parent PLUS loans funds disbursed?
Parent PLUS loans take precedence in paying the tuition and fees balance before any student loans. The Cashiering/Student Accounts office first applies any contracts or agreements against the tuition and fees balance. If you are Federal Pell Grant eligible, any Pell grant eligibility will then be applied. Parent PLUS loans are applied next, then any other student financial aid.

Can I designate who will receive the refund of the Parent PLUS loan - the borrower or the student?
Yes, you may indicate who will receive the credit balance as part of the Parent PLUS loan application process at StudentAid.gov. However, Parent PLUS loans first pay the tuition and fees balance. If you and the student both borrowed loans, this could mean that the credit balance could be issued to the student, since the credit balance would be comprised of the loans the student borrowed.

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