PLUS Loan Guide for Graduate Students

A PLUS Loan is a type of federal loan available to graduate students who need financial assistance to cover education expenses. You can borrow up to the cost of attendance minus any other financial aid you're receiving.

The interest rate for PLUS Loans is fixed at 7.54%, which is higher than the interest rates for Direct Subsidized and Unsubsidized Loans. This means you'll pay more in interest over time.

To qualify for a PLUS Loan, you must be enrolled at least half-time in a graduate program and have a good credit history. You can check your credit report to see if you have any negative marks.

If you're approved for a PLUS Loan, you can borrow up to the cost of attendance minus any other financial aid you're receiving, with no aggregate loan limit.

Consider reading: Loan Officer License Cost

Graduate PLUS Loans are federal student loans available to students attending graduate school and professional school. They're part of the federal direct PLUS Loan program.

For another approach, see: Do Grad plus Loans Accrue Interest While in School

The federal direct unsubsidized loan limit is $20,500 per year, so if you've reached that limit and still need funds to cover the cost of grad school, the Graduate PLUS Loan may be a good option for you.

Private student loans, offered by banks, could be another option worth considering, especially if you have good credit.

Grad PLUS Loans come with a fixed interest rate and flexible loan limits. For loans first disbursed on or after July 1, 2024, and before July 1, 2025, the Grad PLUS loan interest rate is 9.08%.

The Department of Education also charges an origination fee of 4.228% for loans disbursed on or after October 1, 2020. It's deducted from the total loan amount before the money is sent to the school.

To be eligible for a Graduate PLUS Loan, you must meet certain requirements: you're a graduate or professional student enrolled at least part-time at an eligible school in a program leading to a graduate or professional degree or certificate, and you don't have an "adverse credit history".

Here are the key requirements to keep in mind:

The cost of attendance for your graduate program can include tuition and fees, room and board, books and supplies, technology and equipment, transportation, and miscellaneous and personal expenses.

The Graduate PLUS Loan can cover the full cost of attendance for your graduate program, with the exception of other financial aid received. There is no aggregate loan limit.

Expand your knowledge: Graduate plus Loan Amount

You have three repayment plan options for Parent PLUS loans: Standard Repayment Plan, Graduated Repayment Plan, and Extended Repayment Plan.

These plans allow you to make fixed monthly payments for a set period of time, typically up to 10 years. You can choose the plan that works best for your financial situation and goals.

Parent PLUS borrowers may also qualify for an additional repayment plan to reduce monthly payments, the Income-Contingent Repayment plan (ICR Plan). To be eligible, you must consolidate your Parent PLUS loan into a Direct Consolidation Loan.

If you're a parent borrower, you'll generally be expected to start making payments on your Direct PLUS Loan once your loan is fully disbursed. However, you may request a deferment while your child is enrolled at least half-time and for an additional six months after your child graduates, leaves school, or drops below half-time enrollment.

You can choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.

You might like: When Does the Grad plus Loan Application Open

Here are the seven repayment plans offered for Parent PLUS loans:

Contact your loan servicer to discuss which repayment plan works best for you.

A Graduate PLUS Loan is a federal student loan available to students attending graduate school and professional school. It's part of the federal direct PLUS Loan program.

The federal direct unsubsidized loan limit is $20,500 per year, so if you've reached that limit and still need funds to cover the cost of grad school, the Graduate PLUS Loan may be a good option for you.

To qualify for a Graduate PLUS Loan, you must meet the following requirements: you're a graduate or professional student enrolled at least part-time at an eligible school in a program leading to a graduate or professional degree or certificate, and you don't have an "adverse credit history." This means you have no student loan defaults, no long-term delinquencies, and no bankruptcies on your credit report.

Explore further: New Jersey Student Loan Program

The interest rate for a Grad PLUS Loan is higher than for a direct unsubsidized loan, but it's fixed and the same for all borrowers. For loans first disbursed on or after July 1, 2024, and before July 1, 2025, the Grad PLUS loan interest rate is 9.08%.

You can use a Graduate PLUS Loan to cover the full cost of attendance for your graduate program, with the exception of other financial aid received. There is no aggregate loan limit, so you can borrow as much as you need to cover your expenses.

Here are the key differences between a Grad PLUS Loan and other federal student loans:

Note that you should always use federal direct loans first, and use Grad PLUS Loans (or a private loan) to make up the difference needed.

Worth a look: Can I Use My 401k as Collateral for a Loan

To apply for a PLUS Loan, you'll first need to complete the FAFSA, which takes about 20 minutes. You'll also need to provide your verified FSA ID, school name, and other contact information.

For your interest: Do You Need Collateral for a Personal Loan

The application process for a Parent PLUS Loan involves completing a FAFSA with your student, and then you may be offered a Parent PLUS Loan after your student has completed all the items under their Priority Tasks on My ASU. If your student is graduating, they must apply for graduation and notify Financial Aid and Scholarship Services in writing that they plan to graduate and will only need their Parent PLUS loan for one semester.

The amount of the Parent PLUS Loan you may borrow is determined by your student's estimated cost of attendance less any other financial aid they get. The amount you accept should reflect the amount you wish to borrow for your student's actual period of enrollment.

Here's a summary of the disbursement process:

To apply for a Federal Direct loan, you'll need to log on to Federal Student Aid's Student Loan site and click on "Sign In." To sign in, you'll need your FSA ID, which you used to sign the FAFSA.

If this caught your attention, see: Do You Need Collateral for a Business Loan

You'll then select the option that applies to you - Parent PLUS loan for parents of dependent undergraduate students or Grad PLUS loan for graduate or professional students. This will take you to the online application and credit check process.

After completing the credit check, if you're approved, you'll need to complete the Master Promissory Note for a PLUS Loan.

See what others are reading: Direct plus Loan Application for Graduate/professional Students Credit Decision

To start the application process, you'll need to complete the FAFSA, which takes about 20 minutes. You'll need to provide your verified FSA ID, school name, and other personal information.

The FAFSA is a registered service mark of the U.S. Department of Education, Federal Student Aid. Once you've filed the FAFSA, you can start a Grad PLUS Loan application, which takes about 20 minutes.

You'll need to provide your permanent mailing address, U.S. address, telephone number, and email address. If applicable, you may also need to provide your employer's information.

If this caught your attention, see: Do You Need Good Credit to Get a Student Loan

To apply for a Parent PLUS Loan, you and your student must complete a FAFSA. After ASU receives your student's FAFSA, you may be offered a Parent PLUS Loan.

You can choose to accept a lower amount of the Parent PLUS Loan, or even accept none of it. The amount you accept should reflect the amount you wish to borrow for your student's actual period of enrollment.

Here are the steps to apply for a Parent PLUS Loan:

The amount of the Parent PLUS Loan you may borrow is determined by your student's estimated cost of attendance less any other financial aid they receive.

Here's a breakdown of the Parent PLUS Loan application process:

To apply for a Federal Direct Plus Loan, log on to Federal Student Aid's Student Loan site and click on "Sign In." You'll need your FSA ID to sign in.

Select the option that applies to you, such as Parent PLUS loan or Grad PLUS loan, and complete the online application and credit check.

Take a look at this: Does Regulation B Apply to Commercial Loans

Disbursement is an important step in the loan process. Federal Direct PLUS Loan funds will be sent via Electronic Funds Transfer (EFT) to a student's Whittier College account.

The funds will be applied directly to the student's account, making it easier for them to manage their finances. All loans are funded in two disbursements, Fall and Spring, with the option for a Summer disbursement for graduate students.

Graduate students who need additional funds beyond the federal direct unsubsidized loan limit of $20,500 per year may be eligible for a Grad PLUS Loan. The loan comes with a fixed interest rate of 9.08% for loans first disbursed on or after July 1, 2024, and before July 1, 2025.

The Department of Education also charges an origination fee of 4.228% for loans disbursed on or after October 1, 2020, which is deducted from the total loan amount before the money is sent to the school. This means that students will receive less than the full amount borrowed due to the origination fee.

If this caught your attention, see: Loan Account

Parent PLUS Loan funds will be disbursed to the student through Electronic Fund Transfer, applied toward their outstanding ASU charges no earlier than seven days prior to the start of each semester. This ensures that students have time to review their account and make any necessary adjustments before the funds are applied.

The PLUS Loan limits have changed for the 2026-2027 Academic Year. New borrowers will be capped at $20,000 per year and a total of $65,000 per child.

Existing borrowers with a PLUS Loan disbursement prior to July 1, 2026, may still borrow under the previous limits for a specified period, which can be up to three years for some programs.

The interest rate for Direct PLUS Loans first disbursed on or after July 1, 2025, and before July 1, 2026, is a fixed 8.94% for the life of the loan.

For another approach, see: $10 000 Upside down Car Loan

The interest rate for Direct PLUS Loans can vary depending on the disbursement date. For Direct PLUS Loans first disbursed on or after July 1, 2025, and before July 1, 2026, the interest rate is 8.94%, which is a fixed rate for the life of the loan.

New borrowers will be subject to updated PLUS Loan limits for the 2026–2027 Academic Year, capping Parent PLUS Loans at $20,000 per year and a total of $65,000 per child.

Borrowers with an existing PLUS Loan disbursement prior to July 1, 2026, can continue to borrow under the previous limits for a specified period, which may be up to three years for some programs.

The new limits will apply to new borrowers, so if you're planning to take out a PLUS Loan for the current academic year, you'll want to apply as soon as possible to take advantage of the previous limits.

You may be able to borrow under the previous limits for up to three years, depending on your specific program.

Worth a look: What Amount Do I Qualify for a Home Loan

If you're denied a Graduate PLUS Loan, you have alternative options to consider. You can explore private student loans, which are credit-based and often have competitive interest rates without an origination fee.

In some cases, you may be eligible for an additional Federal Direct Unsubsidized Loan if you're an undergraduate student. This can be a viable option if you're not eligible for a Graduate PLUS Loan.

You can also rest assured that you're making a commitment to your future, regardless of the financing method you choose.

If this caught your attention, see: Re Amortizing a Loan

If you're denied a Federal Direct PLUS Loan, don't worry, there are alternatives. Undergraduate students may be eligible to receive an additional Federal Direct Unsubsidized Loan. This can be a great option to help bridge the financial gap.

If you're denied a Federal Direct PLUS Loan, don't worry, there's still hope. You may be eligible to receive an additional Federal Direct Unsubsidized Loan.

You can also consider taking out a private student loan, which is a credit-based option that doesn't have an origination fee. This can be a good alternative to a Graduate PLUS Loan.

For more insights, see: Title Loans That Don T Require the Car

The Graduate PLUS Loan is a good option for covering the full cost of attendance for your graduate program, which can include tuition and fees, room and board, books and supplies, technology and equipment, transportation, and miscellaneous and personal expenses.

Here are some details on what the Graduate PLUS Loan can cover:

Keep in mind that the Graduate PLUS Loan doesn't have an aggregate loan limit, so you can borrow as much as you need to cover the full cost of attendance.