Federal PLUS Loans

PLUS loans are federal loans that graduate or professional degree students and parents of dependent undergraduate students can use to help pay education expenses. The U.S. Department of Education makes Direct PLUS Loans to eligible borrowers through schools participating in the Direct Loan Program.

Here’s a quick overview of Direct PLUS Loans:

  • The U.S. Department of Education is the lender.
  • The borrower must not have an adverse credit history.
  • Loans have a fixed interest rate of 7.9%.
  • The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial aid received.

 

For current interest rates, click here.

Eligibility

To receive a Direct PLUS Loan, you must

  • be a graduate or professional degree student enrolled at least half-time at an eligible school in a program leading to a degree or certificate, or be the parent (biological, adoptive, or in some cases, stepparent) of a dependent undergraduate student enrolled at least half-time at a participating school; and
  • meet the general eligibility requirements for federal student aid. If you are borrowing on behalf of your child, your child must also meet these requirements.

Applying for a Federal PLUS Loan

In order to receive a Direct PLUS loan, you (or your child, in the case of parent borrowers) must complete the Free Application for Federal Student Aid (FAFSASM). The school's financial aid office will provide instructions about their process for requesting a Direct PLUS Loan.