What is a Federal Direct PLUS Loan? The Direct PLUS Loan is a federally sponsored education loan that offers a low, fixed interest rate of 6.31% with an origination fee of 4.292%. The standard repayment period is 10 years, but there is no penalty for early payoff.
When do these loans go into repayment? These loans typically go into repayment 60 days after full disbursement, but you may delay repayment while your student is enrolled in school for up to four academic years by requesting repayment deferral when you apply. This makes the Direct PLUS Loan a flexible option for parents to help cover their child's college expenses.
How do I apply for a PLUS Loan? You can apply at www.studentloans.gov. Sign in using your FSA ID. Then click on “Request a Direct PLUS Loan.” At the end of the application, if you are approved, continue on to complete the master promissory note (mpn). Both the application and the mpn are required to receive the loan.
What if my application is not approved? If your application is denied, you will be given the options of getting an endorser, appealing the decision, or simply letting the decision stand. If you choose not to get an endorser or appeal, your student may be eligible for up to $4,000 (freshmen and sophomores) or $5,000 (juniors and seniors) additional unsubsidized Direct Student Loan money.