The Federal Direct Graduate PLUS is a federal loan that a graduate student who is enrolled at least half-time may borrow to help pay educational expenses.
An eligible student may borrow up to the total of the Estimated Cost of Attendance, less all other financial aid received by the student. There is no cumulative limit to the amount of PLUS loans that can be taken out over the course of a graduate student’s career. Filing a FAFSA is required to receive a PLUS loan. The interest rate is currently fixed at 7.9% and is charged on the loan from the time the loan funds are disbursed until it is paid in full.
Origination and default fees, totaling 4.204 %, are deducted from PLUS Loans. For example, a PLUS Loan in the amount of $1000 will result in a net disbursement of $958.
After reviewing the information below, if you have any further questions you can contact Direct Loans Borrower Customer Service at 800-557-7394.
With convenience for applicants in mind, NIU has recently streamlined the Graduate PLUS application process. Effective Summer 2013, NIU no longer requires a paper application for the Graduate PLUS. PLUS Loans are now directly applied for on the StudentLoans.gov website. A Federal PIN is required for the student to apply for the PLUS Loan, as well as to sign a Master Promissory Note. The Direct PLUS Loan request consists of four sections:
The applicant provides basic demographic information about themself, and submits to a credit check. They also indicate the amount they wish to borrow. A specific amount can be requested, or the borrower can ask for the maximum amount they are eligible to receive. This maximum amount is determined by the school, and as mentioned above is equal to the total of the Estimated Cost of Attendance, less all other financial aid received by the student.
On the School and Loan Information section, applicants are asked to specify a Loan Period. If the student in question plans to enroll for both the Fall and Spring semester, then the full academic-year period (Fall and Spring) must be selected. The Spring-only period should only be selected for students who will not be attending in the Fall.
Once the student has been approved, the final step will be to sign a Master Promissory Note, which is available on the same website as the PLUS Application. Please ensure that the Graduate PLUS Master Promissory Note is the one that is completed, as multiple MPNs are available on the site.
Eligible Graduate PLUS applicants must be either a U.S. citizen or an eligible non-citizen, and must not be in default or owe a refund to any financial aid program. The student must be enrolled at least half-time (4.5 hours in the Fall or Spring, or 3 hours in the Summer).
The student must submit to a credit check by the United States Department of Education to be eligible for a Federal Graduate PLUS Loan. You authorize the credit check when you sign the Federal Direct Graduate PLUS Loan Request Form. To be approved the student must have a satisfactory credit history. However, income-to-debt ratio is not considered.
If your financial aid does not cover all of your educational or living expenses, PLUS Loans are not necessarily your only option. Private Student Loans from a number of national lenders are available to borrowers with good credit. Information about these alternative loans can be found on our site.
NIU also offers a payment plan, called the Huskie Installment Plan (HIP). This program may prove beneficial to those who plan to pay some or all of their charges for a given semester out-of-pocket. Information about HIP can be found on the Bursar Office website.
If the Federal Direct Graduate PLUS disbursement generates a refund after University charges are paid, the refunded amount will go to the student.
If a Federal Direct Graduate PLUS Loan Application is denied, it may be possible for the student to use an endorser. Information about this process will be provided from and should be submitted back to Direct Loan Servicing. Options for when a PLUS is denied are included on the application. The SFAO will proceed based on the choice made on the application. If a change to the originally selected option is necessary, the student should contact the SFAO for more information.
Repayment begins within 60 days of the final loan disbursement during the academic year. Principal and interest payments may be deferred if you meet deferment requirements. Your Federal Direct Grad PLUS will be automatically deferred if you're enrolled at least half-time in a degree-seeking program.
To learn more about available deferments and how to apply for deferment status, please contact the U.S. Department of Education’s processing center at 800-848-0979.