Federal Graduate PLUS Loans

Graduate and professional students are eligible to borrow under the federal 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.

Eligibility

1. 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.
2. 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.
3. Borrower must be a U.S. citizen, U.S. national, or permanent resident of the United States.
4. Borrower cannot be in default on a federal education loan or owe a repayment of Federal Title IV aid.
5. 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

For PLUS Loans the interest rate is fixed at 7.9%. Up to 4% in fees may be charged to the borrower. The effective up front fee will be 2.5% of the loan. For example, the proceeds of a $10,000 loan will be reduced by $250. If the borrower fails to make 12 consecutive on-time payments, they will be billed an additional 1.5% fee.

Steps to apply for a Federal PLUS Loan

1. File the Free Application for Federal Student Aid (FAFSA), this is a requirement for Grad PLUS and recommended for Parent PLUS, 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.
2. 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 indicate loan amount for 2008-09 via the online Financial Aid Self Service system through myPurdue.
3. Beginning in June 2008, DFA will certify borrower eligibility with the loan service provider. The loan service provider approves the loan once the borrower has completed a PLUS Master Promissory Note (MPN) at www.dlenote.ed.gov (if not already on file).
4. 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.

Repayment Information

Loan repayment is deferred in the Grad PLUS program as long as the student remains enrolled at least half time, but interest accrues. If you would like more information regarding repayment, visit our general student loan counseling page.

Direct PLUS Loansa
Initial Debt When You Enter Repayment	Standard		Graduated		Extendedc
	Per Month	Total	Per Monthb	Total	Per Month	Total
$5,000	$60	$7,248	$42	$7,694	Not Available
$10,000	$121	$14,496	$84	$15,388	Not Available
$25,000	$302	$36,240	$211	$38,472	Not Available
$50,000	$604	$72,480	$422	$76,924	$383	$114,781
$100,000	$1208	$144,960	$844	$153,882	$765	$229,561

^a The estimated payments were calculated using the maximum interest rate for Direct PLUS Loan borrowers, 7.9%.

^b This is your beginning payment, which may increase.

^c You may choose the Extended Repayment Plan only if (1) you had no outstanding balance on a Direct Loan Program loan as of Oct. 7, 1998, or on the date you obtained a Direct Loan Program loan after Oct. 7, 1998, and (2) you have an outstanding balance on Direct Loan Program loans that exceeds $30,000. Under the Extended Repayment Plan, you may choose to make fixed or graduated monthly payments. This example shows fixed monthly payments.