Federal Direct PLUS Loans are a type of federal student loan available to graduate or professional students and parents of dependent undergraduate students. These loans help cover education expenses not met by other financial aid.
Unlike Direct Subsidized Loans, which are available to undergraduate students with financial need and where the government pays the interest while you're in school, Direct PLUS Loans are available regardless of financial need. Interest on PLUS Loans accrues from the time the loan is disbursed until it is paid in full. For more details on the differences between these loans, visit our .
Interest rates for federal student loans vary depending on the type of loan and the borrower's status. PLUS Loans have the highest interest rates. Additionally, PLUS Loans come with a much higher loan origination fee compared to other federal loans. The calculator below factors in the different interest rates for each year. To see how much interest you will accrue across all loan types, . To learn more about loan origination fees, .
To qualify for PLUS loans, you must not have an adverse credit history. A credit check is conducted on all Direct PLUS Loan applicants. An adverse credit history includes conditions such as having accounts with a total outstanding balance greater than $2,085 that are 90 or more days delinquent, default determination, bankruptcy discharge, repossession, foreclosure, charge-off/write-off of federal student aid debt, wage garnishment, or tax lien within the past five years. However, if you have an adverse credit history, you may still be able to receive a PLUS loan if you meet additional requirements.
The annual maximum amount of PLUS loans you can borrow is your cost of attendance, which is determined by your school, less any other financial aid received (like unsubsidized loans or scholarships).