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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.

Compare this loan to other loans in the table below.


  • Eligibility
      1. 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. 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. 3. Borrower must be a U.S. citizen, U.S. national, or permanent resident of the United States.
      4. 4. Borrower cannot be in default on a federal education loan or owe a repayment of Federal Title IV aid.
      5. 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
    • Refer to www.purdue.edu/dfa/loans/interest-rates.php to see how interest rates are calculated and the amount for 2013-14.
    • The effective up front loan origination fee will be 4.288% of the loan. The Department of Education's website and systems may not reflect this update immediately.
    • For example, for every $1,000 of PLUS Loans borrowed, the origination fees will be $43 (rounded).
  • Loan Deadline
    • Federal Parent PLUS Loans may be processed if applied for online at www.studentloans.gov by the last Monday of the enrolled term.  Applications for the 13-14 school year will be available online beginning April 5, 2013.
  • Steps to Apply for a Federal PLUS Loan
      1. 1. 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.
      2. 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 must complete a separate application online at www.studentloans.gov.
      3. 3. 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).
      4. 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.
  • 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 repayment examples here assuming a 7.9% fixed interest rate and 10 year repayment term. Borrowers can calculate payments at www.studentloans.gov or refer to the National Association of Student Financial Aid Administrators' (NASFAA) Student Loan Repayment Interest Tables (PDF).

    Amount Borrowed Payment
    $5,000 $60
    $10,000 $121
    $20,000 $242
    $30,000 $362

Loan Comparison Chart

Interest Rate
3.86-5.41%
5.0%
5.0%
5.0%
6.41%

2.25-13.99%

Check with your lender.

Interest Rate
Type
Fixed
Fixed
Fixed
Variable or fixed - Check with your lender.
Fees
1.072% of the accepted amount
None
None
None
4.288% of the accepted amount

0-5% of the accepted amount

Check with your lender.

Minimum enrollment
Undergrad: 6 cr, Grad: 4  cr
Undergrad: 6 cr, Grad: 4 cr 
Undergrad: 6 cr, Grad: 4 cr 
12 cr. hours
4 cr hours
Less than half-time for some - Check with your lender.
FAFSA
required
YES
YES
YES
YES
YES
NO
SAP required
YES
YES
YES
YES
YES
Check with your lender.
Standard repayment term
10 Years
10 Years
10 Years
10 Years
10 Years

Typically 5-15 years

Check with your lender.

When payment starts
6 months after graduation or falling below half-time enrollment
9 months after graduation or falling below half-time enrollment
6 months after graduation or falling below half-time enrollment
12 months after graduation or falling below 12 cr. hours
Immediately after falling below half-time enrollment
Check with your lender.
Who can apply
Student
Student
Student
Student
Student
Student
Responsible for repayment
Student
Student
Student
Student
Student
Student
Credit Check Required
NO
NO
NO
NO
YES
YES
Loan Limits
Based upon grade level and dependency status
$2,000
$2,000
$2,000
Up to 100% of the cost of attendance, minus other financial aid received

Generally, up to 100% of the cost of attendance, minus other financial aid received.

Check with your lender.

Minimum required payment during student's enrollment
None; interest may accrue.
None
None
None
None; interest may accrue.
Many private lenders allow payments to be deferred while the student is in school; interest accrues during this time. Many lenders offer options to make interest payments while the student is in school.
Repayment Plans
Graduated, extended, or income-based plans may be available to qualified borrowers.
None
None
None
Graduated, extended, or income-based plans may be available to qualified borrowers.
Discretionary programs available for troubled borrowers but are not part of the loan agreement.

Cosigner /
endorser option

N/A
N/A
N/A
N/A
YES
Most private lenders require a cosigner for freshmen. A cosigner may result in a better interest rate. Check with your lender.
Cosigner /
endorser release
N/A
N/A
N/A
N/A
NO
Some after 1 year - Check with your lender.
Tax deductible interest
YES
YES (subject to IRS guidelines)
YES (subject to IRS guidelines)
YES (subject to IRS guidelines)
YES
Generally, YES - the student can take the tax deduction (subject to IRS guidelines). Restrictions apply to loans for less than half-time enrollment.
Ability to consolidate
YES - Up to 25 years
YES (but borrowes must include at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan in the Direct Consolidation Loan; note that benefits specific to Perkins Loans will be lost, though.
NO
YES (but borrowes must include at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan in the Direct Consolidation Loan
YES - Up to 25 years
Check with your lender.
How to apply
Accept on myPurdue
Accept on myPurdue
Accept on myPurdue
Accept on myPurdue

Accept on myPurdue and www.student
loans.gov

Lender website