The Federal Direct PLUS Loan for Graduate Students, referred to as the Grad PLUS, is a non-need based loan for graduate level students. Loan eligibility is limited by the institutional budget minus all other financial aid. Effective July 1, 2019, Federal Direct PLUS loans for the 2019-2020 academic year will have a 7.08% interest rate fixed for the life of the loan with a 4.248% up-front loan fee deducted from each disbursement. Interest rates on future year Grad PLUS loans will be indexed to the 10-year U.S. Treasury Note rate. Click here for the current Federal Direct Loan interest rate table.
Students are required to meet Satisfactory Academic Progress and maintain half-time enrollment.
Obtaining a Grad PLUS Loan
After completing the FAFSA, the student will be notified when their award notification is available to view in e-Services. If a student would like to pursue additional loan funds in the Grad PLUS loan, they can complete the online application for a Grad PLUS loan at studentloans.gov.
A credit check will be conducted prior to approval of the loan. If a student has an adverse credit history the loan application will be denied. The student may still be approved through one of these options; try to obtain an endorser who does not have an adverse credit history or document to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to the adverse credit history.
If the loan is approved, the first time a student borrows a Grad PLUS loan they are required to sign a Loan Agreement for a PLUS Loan (MPN) at studentloans.gov. Once a student has completed the Loan Agreement for a PLUS Loan (MPN), all subsequent Grad PLUS loans will only require the online Direct PLUS application.
The repayment period begins 6 months after a student graduates, leaves school, or drops to less-than-half time. During any period when not required to make payments, interest will accrue on the Grad PLUS Loan. If accrued interest is not paid, the interest will be capitalized (added to the loan principal balance) at the time repayment begins. A Grad PLUS Loan can be repaid using the standard, extended, graduated, pay as you earn, revised pay as you earn, income-based, and income-contingent repayment plans. Students will work with their loan servicer regarding repayment. If there are any difficulties making payments, students should contact their servicer immediately to receive assistance. Servicers can help borrowers change their repayment plans or utilize deferment or forbearance options.
To ensure the integrity and the best interests of our students BSU employees are subject to the Student Loan Code of Conduct.