Federal Direct Graduate PLUS Loans

Federal Direct Graduate PLUS Loans

The Federal Direct Graduate PLUS Loan is available to graduate students who have exhausted their Federal Direct Student Loan eligibility in an academic year.

Application:  Graduate students may apply online.  Graduate student borrowers applying for the loan will complete the Federal Direct PLUS Loan Master Promissory Note Application (PLUS MPN).  A student borrower using the PLUS MPN will usually need only to sign a promissory note once, at the time they first borrow.  To request additional funding in the same or subsequent years, the student borrower may do this online

Deadline:  Federal Direct Graduate PLUS Loan applications must be certified by the Office of Financial Aid by the last day of the semester.  In order for the loan to be disbursed, the student must have a valid master promissory note (Graduate PLUS MPN), submitted a Federal Direct Grad PLUS Loan Request Form and have completed entrance counseling before the last day of enrollment for the term in which the loan is processed.  The student must be enrolled at least half-time at the time of disbursement.

Eligibility:  Students must be enrolled at least half-time (five credits per semester) in a degree graduate program.  In addition, students must first exhaust Federal Direct Student Loan eligibility and be credit worthy.  General eligibility requirements, as previously discussed, must be satisfied by all students to receive Federal Direct Graduate PLUS Loan assistance.

Loan Limits per Academic Year:  The maximum students may borrow in Federal Direct Graduate PLUS Loan per academic year is the difference between cost of education minus other financial aid received.

Aggregate Loan Limits:  There is no aggregate limit.

Interest Rate:  Federal Direct Graduate PLUS Loans first disbursed on or after July 1, 2013 and prior to July 1, 2014 are at a fixed rate of 6.41%.

Fees:  In addition to the interest, an origination fee (4.288% of the loan amount) is charged. 

Loan Reductions/Cancellations:  Students may request the Federal Direct Graduate PLUS Loan be reduced or canceled.  The request must be in writing from the student, not the parent.  Please include your name, your Bloomsburg University ID Number, and the amount you want the loan reduced to.  If the request is made prior to disbursement of funds, please send the request to the Office of Financial Aid.  Once disbursement of funds has been made, students have 30 days to request the Business Office to return funds.

Repayment:  Federal Direct Graduate PLUS Loan repayment for both the principal and the interest generally begins within 60 days after the loan is fully disbursed.  There is no grace period for these loans.  This means interest starts to accrue as soon as the first disbursement is made.  The student may qualify for an in-school deferment as long as they are enrolled at least on a half-time (six credits per semester) basis.  A student may take between 10 to 25 years to repay the loan, depending upon the amount borrowed and the type of repayment plan selected.  Students may also pay the balance of the loan, plus any interest due, early and without a penalty.

Loan Counseling:  Federal regulations require that first time Federal Direct Graduate PLUS Loan recipients at Bloomsburg University must complete entrance counseling requirements before receiving their loan funds.  Federal regulations also require a student to complete exit counseling prior to graduation or at the time a student either drops to less-than half-time enrollment (less than six credits) or withdraws from Bloomsburg University.