Graduate PLUS Direct Loans

ELIGIBILITY

In addition to the Federal Direct Subsidized and Unsubsidized Stafford Loans available to student borrowers, graduate students may borrow additional funds through the Federal Direct Graduate PLUS Loan program. The borrower must be a graduate or professional student. The lender is the U.S. Department of Education. Students may borrow any amount up to the cost of education minus any other financial aid and assistantships they are receiving. Eligibility will be based upon a satisfactory credit check.

Graduate students should exhaust their Direct Stafford eligibility before utilizing this loan. The interest rate is higher and the payments are not automatically deferred during enrollment. The cost of attendance for the fall/spring terms at HSU is not high enough for both Direct Stafford and Direct Graduate PLUS loans, although graduate students may utilize the Graduate PLUS loan for summer terms.

Contact the Office of Financial Aid determine if eligibility for increased funding is available. Please note that you may borrow any amount up to your cost of attendance minus any other financial aid you may receive for the academic year.

HOW TO APPLY

To apply for the Graduate PLUS loan, go to www.studentloans.gov and login. Choose Request a PLUS loan, then Graduate PLUS. Submit all information and receive your results immediately. If approved you must complete the MPN. If not approved, you will be asked whether you would like to obtain an endorser, appeal the credit decision or allow the denial to stand.

The Direct Grad PLUS loan is based on credit worthiness of the borrower. If not approved, the student may obtain a credit worthy co-borrower.

Further information regarding this program can be found in the 2011-2012 Student Guide or by calling Borrower Services at 1-800-848-0979.

PROMISSORY NOTE

The Master PLUS Promissory Note (MPN) will simplify the processing of your loan(s). The Federal Direct Grad PLUS MPN is a promissory note that can be used to make one or more Federal Direct Grad PLUS Loans to a borrower to help pay for the educational costs of their education for one or more academic years. In most cases, the student may receive additional Federal Direct Grad PLUS Loans for themselves up to 10 years without completing a new Federal Direct Grad PLUS MPN.

If it is determined that the student has an adverse credit history and has obtained an endorser for a Federal Direct Grad PLUS Loan, the Federal Direct Grad PLUS MPN that the student completes becomes a "single-loan" promissory note. No further Federal Direct Grad PLUS Loans may be made under that Federal Direct Grad PLUS MPN. The endorser is liable only for the specific loan that he or she has agreed to endorse.

DISBURSEMENT

The interest rate is fixed and is adjusted each year on July 1. The interest rate will never be higher than 9 percent. There is a 4 percent loan fee deducted from each disbursement of the PLUS loan. However a 1.5 percent rebate is being offered for borrowers. To obtain current interest rates click here.

The loan will be applied to your student account. The loan must be disbursed in two equal amounts, one at the beginning of each term. If the loan disbursement is in excess of the amount owed to the University a loan refund check will be made payable to the student borrower.

REPAYMENT

The student is responsible for repayment of this loan. Repayment begins 60 days after disbursement of the loan proceeds for the academic year is applied to the student account.

The Federal Direct Loan Program offers loan repayment plans designed to meet the needs of almost every borrower. Federal Direct loan borrowers may choose between the standard, extended, or graduated repayment plans. Repayment of PLUS loans are managed by the Direct Loan Servicing Center.

You will have from 10 to 30 years to repay depending upon the repayment plan chosen. To estimate an amount of repayment based on the standard, extended, or graduated repayment plans, you may access the Federal Direct Loan's interactive repayment calculator. Calculations are estimates and the values may not reflect the actual amount computed by the Direct Loan Servicing Center.

While you are enrolled in school, completing an in-school deferment form will allow you to postpone any payments required. In addition, The Federal Direct Loan program offers other types of deferment and forbearance.

The Counseling and MPN required for the Direct Grad PLUS loan are separate from the Direct Stafford loans and must be completed before disbursement can occur.

Click here to complete your student Federal Direct Grad PLUS application and MPN 

Click here to complete your Federal Direct Graduate PLUS Loan Entrance Counseling