Federal Graduate PLUS Loans
Graduate and professional students are eligible to borrow under the Federal Direct PLUS Loan Program. The Graduate PLUS loan amount is limited to the cost of attendance minus other estimated financial assistance. Interest will accrue after full disbursement of the loan. The borrower cannot have an adverse credit history. More information about Direct Loans is available on our Direct Loan Fact Sheet.
Compare this loan to other financing options.
Eligibility
- Creditworthy graduate and professional students are eligible to borrow in the PLUS program as long as student is enrolled at least half time, is degree seeking, and does not have an adverse credit history.
- The applicant will be ineligible if the credit history indicates "he or she is 90 days or more delinquent on any debt or has been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the five years preceding the date of the credit report". The credit history will not be reviewed by the Federal Direct Loan processor until Purdue has processed the accepted PLUS award.
- Borrower must be a U.S. citizen, U.S. national, or permanent resident of the United States.
- Borrower cannot be in default on a federal education loan or owe a repayment of Federal Title IV aid.
- Financial need is not a requirement to obtain a PLUS Loan, but the borrower is responsible for interest that accrues.
Award Amounts
PLUS Loan limits are determined by the estimated cost of attendance less any other aid. For the Grad PLUS program it is assumed the student will borrow the maximum amount available in the Federal Stafford Loan program.
Interest Rates and Fees, Effective July 1, 2012
- For PLUS Loans the interest rate is fixed at 7.9%.
- The effective up front loan origination fee will be 4% of the loan.
- For example, for every $1,000 of PLUS Loans borrowed, the origination fees will be $40.
Steps to apply for a Federal PLUS Loan
- File the Free Application for Federal Student Aid (FAFSA) and submit all documents requested by the Division of Financial Aid (DFA); check for required documents via the online Financial Aid Self Service system at myPurdue.
- DFA will send the student an Award Notice that the borrower can use to determine loan period, the type of eligibility, and the amount of eligibility; the borrower needs to determine how much they want to borrow. Grad PLUS borrowers will be able to accept the loan amount they want via the online Financial Aid Self Service system through myPurdue.
- DFA will certify borrower eligibility with the Direct Loan service provider. The loan service provider approves the loan once the borrower has completed a PLUS Master Promissory Note (MPN) at studentloans.gov (if not already on file).
- Grad PLUS Loan funds are normally sent electronically to the Purdue Bursar by the loan service provider. The borrower will be notified by the Bursar’s Office that funds have arrived. Funds are applied first to fees, then to any housing costs (if the Bursar bills for housing). Any remaining Grad PLUS funds are sent to the borrower. Please note that it is important that students keep their address up-to-date via myPurdue and read all email from facontact@purdue.edu.
Master Promissory Note
The PLUS Loan Master Promissory Note is a multi-year or serial loan feature of the PLUS program. It allows borrowers to receive future Federal PLUS Loans without completing and signing additional promissory notes as long as the borrower remains eligible for Federal PLUS Loan and completes appropriate loan request processes. By signing only one promissory note, the delivery of PLUS loan funds will occur even faster because it eliminates the time it takes for a promissory note to be mailed, completed, and returned to the loan service provider. Borrowers will use their FAFSA PIN to sign their promissory note at studentloans.gov.
Repayment Information
Loan repayment may be deferred in the PLUS program if the student remains enrolled at least half time (but interest accrues). For information regarding in-school deferments and payment plans please contact the Direct Loan Servicer at www.studentloans.gov or
1-800-557-7394. See more information about repayment in our Direct Loan Fact Sheet.
See repayment examples here assuming a 7.9% fixed interest rate and 10 year repayment term. Borrowers can calculate payments at www.studentloans.gov.
Amount Borrowed |
Payment |
$5,000 |
$60 |
$10,000 |
$121 |
$20,000 |
$242 |
$30,000 |
$362 |