When you apply for a Federal Direct Grad PLUS Loan, the U. S. Department of Education will check your credit history. To be eligible for a Grad PLUS Loan, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a Grad PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct Grad PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Grad PLUS Loan if you document to our satisfaction that there are extenuating circumstances related to your adverse credit history.
As of July 1, 2010 the federal government has eliminated the Federal Family Education Loan (FFEL) program. All student and parent loans will be originated through the federal government's Federal Direct Loan program. Students who have previously borrowed through a lender under the FFEL program will need to sign a new Master Promissory Note (MPN)with the federal government in the Direct Loan program for all loans disbursed after July 1, 2010.
The Federal Direct Grad Plus Loan Program requires a 4.292% origination fee. The U.S. Department of Education deducts the fees before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.
To find out more information on interest rates for Direct PLUS Loans, contact the Direct Loan Servicing Center at 800-557-7394.
Repeat Direct PLUS loan borrowers who have already completed a Federal Direct Master Promissory Note for previous years need to complete step 1 and 3. No PLUS Loan will be processed until a valid credit approval has been received by the Dept. of Education. After the initial application, steps 1 and 3 will need to be completed for each additional PLUS Loan request.
Please note that this step in the process is NOT the Promissory Note, it is an application where you provide information for the Credit Check to be done by the Dept. of Education. Click on the link above and once there, sign in with your FSA ID and other information, then click on "Request a PLUS Loan".
STEP 3: Complete your Graduate PLUS Loan Entrance Counseling
Step 4: Complete your 2016-2017 Graduate PLUS Loan Certification