Federal Direct Grad PLUS Loans for Graduate Students

The Federal Direct GRAD Plus Loan for graduate students is specifically designed to enable graduate/professional students to increase their federal financial aid at an affordable interest rate. Direct Grad PLUS Loan repayment differs from Direct Loan in that repayment begins 60 days after the second disbursement of the loan. Many servicers offer deferment until the student graduates from the program, although interest continues to accrue.

Maximum Direct Grad PLUS Eligibility

Graduate students may borrow up to the total cost of education, minus financial aid and other loans received. Before receiving a Direct Grad PLUS Loan, the school must determine the student’s eligibility for the amount borrowed. The student borrower must be credit worthy.

Requirements for Direct Grad PLUS Loan

• A student must have borrowed his/her maximum Direct Loan eligibility
• Student must complete the FAFSA.

Apply for a Direct Grad PLUS loan at www.studentloans.gov.

Complete a Loan Agreement (MPN) at www.studentloans.gov.

Adverse Credit History

If a borrower is determined by the Department of Education to have an adverse credit history, they may:

• Document extenuating circumstances.
• Obtain an endorser.

Borrowers who are determined to have adverse credit but qualify for a Grad PLUS Loan based on extenuating circumstances or obtaining an endorser must complete Entrance Counseling at studentloans.gov.