Federal Direct Grad PLUS Loans
Grad PLUS Loans are federal loans that graduate and professional students with good credit history may borrow to help pay educational expenses if you are enrolled in at least 6 credit hours per semester.
A student may borrow up to the total of the Estimated Cost of Attendance less resources and other financial aid. The interest rate is a fixed interest rate of 7.9% and is charged on the loan from the time the loan funds are disbursed until it is paid in full.
Apply for a Grad PLUS Loan
To apply for a Grad PLUS loan you must complete the FAFSA. Additionally you will be required to sign a Grad PLUS Master Promissory Note (MPN) and complete Entrance Counseling. The Entrance Counseling requirement for a Grad PLUS Loan is different from that of a Direct Stafford Loan (subsidized/unsubsidized) but may be completed at the same time by completing the Combination - Stafford and PLUS loan option. In addition, to be eligible for a Grad PLUS Loan, you must be enrolled at least six hours per semester.
Eligibility
To be eligible for a Grad PLUS Loan, you must submit to a credit check by the U.S. Department of Education. You authorize the credit check when you agree to the Award Letter Financial Aid Terms and Conditions.
Grad PLUS Loan Processing / Receipt of Funds
The Direct Loan Processor will notify you and OSFA of the result of the credit check. You cannot be 90 days or more delinquent on the repayment of any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the last five years. If credit is approved, loan funds will be disbursed. The funds will be applied to tuition, fees, and other university charges.
Refunds
If a Grad PLUS disbursement generates a refund, the refunded amount will be deposited into your bank account. Authorizing direct deposit of refunds gives you the quickest access to your funds.
Repayment of Federal Direct Grad PLUS Loans
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.
Compare Loans
You are encouraged to research the interest rates, credit check requirements, conditions, terms, and repayment of Grad PLUS Loans with that of private alternative loans. General differences:
- The credit check for the Grad PLUS Loan will not be as stringent as that of most private/alternative loans, which often look at debt to income ratio.
- Grad PLUS Loans can be consolidated with other Federal Direct Loans (subsidized/unsubsidized), which allows students to have only one payment after graduation (private/alternative loans cannot be consolidated with federal loans).
- Interest rates tend to be lower than many private/alternative loans.
- The Grad PLUS has different requirements regarding deferment during in-school and summer terms.
Private PLUS Lender Not Accepted
You may receive information about the Grad PLUS program offered through private lenders. However, the University of Illinois at Urbana-Champaign participates in the Federal Direct PLUS program; therefore, you cannot use a private Grad PLUS lender.
