Federal Grad PLUS Loans
Graduate students who need to borrow funds beyond the federal subsidized, unsubsidized, and Perkins loan limits may apply for additional funds through the Federal Direct Graduate PLUS Loan program. The Direct Graduate PLUS Loan is offered to qualified graduate or professional students with or without financial need who meet all financial aid eligibility requirements.
To receive a Federal Loan, you must file the annual FAFSA.
The lender for the Direct Graduate PLUS loan is the U.S. Department of Education. Repayment begins within 60 days after the loan is fully disbursed. However, an in-school deferment may be obtained from the U.S. Department of Education by students that meet their requirements. It is important to note that there is no grace period for this loan. Interest begins to accrue at the time the first disbursement is made.
- Who Can Borrow
- Application Process
- Limits & Rates
- Applicant Services
- Credit Criteria
- Credit Approval
- Credit Denial Options
Students who have been admitted into a graduate or professional degree program of study. Post bachelor students taking courses to gain admission to a graduate or professional program are not eligible, neither are students taking courses necessary for their teacher certification.
The application process must be completed each year just as the Free Application for Federal Student Aid (FAFSA) is completed each year.
- The Graduate PLUS loan amount listed on the award notification is the maximum Graduate PLUS loan amount a graduate or professional student may borrow that aid period.
- The student may request all or a portion of the loan amount shown on Pipeline. The student may not request funds above their cost of attendance.
- Complete the Direct Graduate PLUS Loan Application and submit to the Office of Student Financial Aid (OSFA.)
- OSFA will send the Graduate PLUS loan application electronically to the Direct Loan Servicing Center for a credit check review.
- The student must also complete the Direct Graduate PLUS Loan Master Promissory Note (MPN) online at www.dlenote.ed.gov. Students will not be required to sign a Direct Graduate PLUS Loan MPN each year of attendance at WSU, as the note is valid for ten years.
- Direct Graduate PLUS Loan borrowers are required to complete Direct Graduate PLUS Entrance Loan Counseling online prior to receiving loan funds.
The amount of Graduate PLUS Loan that a student can borrow is equal to the cost of attendance (student budget) minus all other financial aid.
The Federal Graduate PLUS loan is a low-interest student loan for graduate students attending at least half-time. The interest rate is fixed at 7.9%. There is a 2.5% loan origination fee deducted from the loan by the U.S. Department of Education. This loan fee includes an up-front rebate that assumes you will make 12 on-time monthly payments.
Please refer to the Federal Student Aid Q & A for further information regarding Direct PLUS Loans for Graduate and Professional Students.
- 800-557-7394 8 am to 8 pm (ET), Monday thru Friday
- 877-461-7010 Telecommunication Device for the Deaf (TDD)
Plus Borrowers can contact Applicant Services for:
- Credit Appeal Overrides
- Endorser Application Questions
Credit approval is based on federally mandated criteria, not a credit score. In order to qualify, you must not have any of the following items on your credit report:
- Any current delinquency of 90 days or more
- Any of the following items within the preceding five years of the date of the credit report: Default, Bankruptcy, Discharge, Foreclosure, Repossession, Tax Lien, Wage Garnishment, Write-off of a Title IV Debt, Open Collection
Credit approval is valid for 6 months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the proceeding 6 months.
If you think you may have one or more of the items outlined in the credit requirements listed above you may want to obtain your credit report in advance. You may be able to fix an item such as the delinquency by simply making a payment and bringing your delinquency to less than 90 days. If you have had a situation with a discharge or collection item for example, you may be able to obtain a “settled in full” status if you work with the entity to reach a satisfactory arrangement. If you are able to fix an item, it is no longer considered in the credit evaluation and it may result in your credit being approved.
- Apply with an endorser
- Correct any invalid information on your credit report that may have led to the denial
- Appeal the denial
- Contact the financial aid office to explore your options. We will review your award to make sure you are taking advantage of all loan and college work-study options.
Recent changes in the law that governs the terms and conditions of PLUS loans establish a specific extenuating circumstance for certain PLUS loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a PLUS loan applicant may qualify for a PLUS loan based on extenuating circumstances if the applicant -
- Has been or is delinquent for 180 days or less on mortgage loan payments, or on medical bill payments for the applicant or the applicant’s family, and
- Does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to PLUS loan applicants.
An insert explaining the new provision will be included in all correspondence packages sent to Direct PLUS Loan applicants who receive an adverse credit determination. Information will include instructions to appeal the denial of a Direct PLUS Loan application.