Direct PLUS Loan for Graduate Students FAQ
Q. What is the Direct PLUS loan?
A. The Direct PLUS loan is a federal loan with a fixed interest rate of 7.21% and a 4.288% origination fee. (For example: a loan of $10,000 will disburse to the student’s account as $9,571). Repayment of Direct PLUS loans begins 60 days after the loan is fully disbursed. Other repayment options include deferment on principal and interest or interest-only payments while the student is enrolled as at least half-time status. Repayment options may be selected at the time of application.
Q. What are the eligibility requirements?
A. Borrower eligibility for the Direct PLUS Loan is ultimately determined by FAFSA information, La Salle University of Cost of Attendance, the application and credit approval process, and any other required documentation. The student must also meet Federal Student Aid (FSA) general eligibility requirements.
In order to be eligible for a Direct PLUS Loan, the graduate student must be enrolled for a minimum of 3 graduate credits per semester.
Q. How do I apply for the Direct PLUS Loan?
A. In order to apply for a Direct PLUS loan, students will first need to complete a current year FAFSA and the La Salle University Institutional Data Form (IDF). They must also have applied for their annual loan maximum eligibility through the Direct Subsidized and Unsubsidized Loans before applying for a Direct PLUS loan. Students can then sign into www.studentloans.gov to complete the PLUS loan application.
Q. What is the next step after I am credit approved?
A. Direct PLUS loans are approved or denied based on the creditworthiness of borrower.
If the student is approved for the Direct PLUS loan, he/she will need to sign the Direct PLUS loan Master Promissory Note (MPN) via www.studentloans.gov.
Remember, all loans are certified for the full year – both fall and spring semesters. Loans are not processed for one term only unless the student is graduating in December.
Q. Will a Direct PLUS Loan Master Promissory Note (MPN) need to be completed?
A. Yes, all students new to the Direct PLUS Loan Program, as well as those who have borrowed through the FFELP PLUS loan program, will need to sign a new MPN via www.studentloans.gov.
If you have previously borrowed a PLUS Loan at another Direct Lending institution, you will only need to complete the credit check process, as the MPN has already been completed for the previous loan at the previous institution.
Q. Who can answer questions about my Direct Loan?
A. Any questions you may have regarding the application should be addressed to La Salle University Financial Aid. You may e-mail firstname.lastname@example.org or call 215-951-1070.