Graduate and professional degree students can borrow a Direct PLUS Loan to help cover education expenses. Students are required to complete the Free Application for Federal Student Aid (FAFSA) and the Direct PLUS Loan Application and
Master Promissory Note (MPN). The MPN is a legal document in which you
promise to repay the loan and any accrued interest and fees to the
Department. It also explains the terms and conditions of the loan. In
most cases, one MPN can be used for loans that you receive over several
years of study, although a separate Loan Request must be filed for each
The interest rate for Direct PLUS Loans is a fixed rate of 7.9%. If you
qualify under the Service Members Civil Relief Act, the interest rate on
loans you obtained before entering military service may be capped at 6%
during your military service. You must contact your loan servicer to
request this benefit. There is a fee of 4% of the loan amount, deducted
proportionately each time a loan disbursement is made.The maximum PLUS Loan amount you can borrow is your cost of attendance
(determined by the school) minus any other financial assistance you will
The repayment period for a Direct PLUS Loan begins when the loan is fully disbursed, and the first payment is due 60 days after the final disbursement. However, you may defer repayment while you are enrolled at least half-time. If your Direct PLUS Loan was first disbursed on or after July 1, 2008, you may also defer repayment for an additional six months after you cease to be enrolled at least half-time
- No adverse credit history.
- Must have received the annual loan maximum eligibility under the Direct Subsidized and Unsubsidized Stafford Loan programs (20,500) before applying.