Graduate Federal PLUS Loans
Graduate Federal PLUS Loans are for graduate/professional students. Borrowers can use Graduate PLUS Loans to help meet the cost of attendance or cover a student's expected family contribution (the amount of money the government expects the parents and student to provide each year for the student's education).
- The interest rate is fixed at 7.9%.
- The U.S. Department of Education charges a loan fee of 4% of the principal amount of each Direct PLUS Loan. This fee is deducted proportionately from each disbursement of your loan.
Any loan that disburses after March 1, 2013 will have higher fees.
- Subsidized and unsubsidized loan interest rates will increase by .05% (The old fee was 1% and is now 1.05%)
- PLUS loan interest rates will increase by .20% (The old fee was 4% and is now 4.20%)
Because of the higher fees, disbursement amounts will be less.
- Example: A subsidized or unsubsidized loan fee for $5,500.00 will increase from $55.00 to $57.75. The disbursed amount will be $5,442.25.
- Example: A PLUS loan fee for $10,000.00 will increase from $400.00 to $420.00. The disbursed amount will be $9,580.00.
With a PLUS loan, you can borrow up to the cost of attendance minus any other financial aid awarded.
Students may complete an application at studentloans.gov.
- A student who has a valid FAFSA on file;
- A student who has completed the Master Promissory note specifically for the Graduate Federal PLUS Loan. This can be done at https://studentloans.gov;
- A student whose enrolled at least half time;
- A student with good credit history;
- Or a co-borrower with strong credit,
- Or supporting documentation along with a statement on extenuating circumstances.
All students planning to receive a direct loan must be enrolled half-time and will need to complete a Master Promissory Note and complete Entrance Counseling at www.studentloans.gov. To complete these requirements, students will need a Department of Education PIN (the same PIN used for the FAFSA) to e-sign their electronic MPN. They will also need their social security number, date of birth, driver’s license number, and two personal references (full name, address, and telephone numbers) to complete their MPN. The University of Houston will electronically verify with the Department of Education that these steps have been completed before funds are released.
Disbursement dates will begin after January 14, 2013. Once the student has completed their MPN, the student may check back with our office regarding disbursement after January 14.
Once the loan has been disbursed, the funds will be applied to the student's account to cover charges. If a credit balance is created, funds will be refunded to the student's Higher One account preference.
In order to maintain eligibility, a student must be enrolled at least half-time at the time of disbursement and meet all Satisfactory Academic Progress requirements.
- Repayment begins after the loan has disbursed fully for that academic year.
- A request for deferment can be submitted for payment to begin upon dropping below half time.
- Borrower will have up to 10 years to repay the loan.
- There is no grace period.
Please review the William D. Ford Direct Loan Program for additional information on Repayment Plans.