Direct Graduate PLUS Loan

PLUS Loans are federal loans that graduate or professional degree students can borrow to help pay education expenses. The lender is the U.S. Department of Education.

The FAFSA serves as the application for the Graduate PLUS Loan, however there are additional requirements that must be met in order for the student to be eligible...

  • Must be enrolled at least part time (6 or more credits) in an eligible graduate level degree program
  • The student borrower must not have an adverse credit history. A credit check will be run, the consent form will be included with the award letter
  • Must accept the annual maximum amount of the Direct Unsubsidized Loan ($20,500) offered before receiving PLUS funds
  • Sign a separate PLUS Loan Master Promissory Note (MPN) agreeing to the terms and conditions of this loan

For the 2017-2018 academic year, the interest rate is fixed at 7%. Interest is charged for the date of the first disbursement until the loan is paid in full. Graduate PLUS Loans are subject to an origination fee of 4.264%, deducted by the Department of Education, at the time of each disbursement.

The annual limit on a PLUS Loan is equal to the student's cost of attendance minus any other financial aid received. For example, if the cost of attendance is $50,000 and the student receives $20,500 in other financial aid, the student can request up to $29,500 in PLUS Loan funds.

Upon disbursement, NYSID will automatically apply the loan funds to the student's account to cover tuition, fees, housing, and other school charges. If any funds remain, the student will receive that amount in the form of a refund check. Loan refunds must only be used for educational expenses.

Graduate PLUS Loans enter repayment once the loan is fully paid out. However, if you are a continuing student, your loan will be placed into deferment while you are enrolled at least half-time and for an additional six months after you cease to be enrolled. You can find more information on repayment here.

For more information on Graduate PLUS Loans and answers to frequently asked questions, please visit the U.S. Department of Education's website here.