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Graduate PLUS Loan

The Federal Direct Graduate plus Loan (Grad plus) is available to U.S. citizens and permanent residents. It is not based on need; however you must still file the FAFSA to be eligible. You must be enrolled at least half-time in a graduate degree program to be eligible for this loan.

Federal Direct Graduate PLUS Loan Limits and Terms

With a Graduate plus Loan you may borrow up to the full cost of attendance less other financial aid you are receiving. The interest rate is fixed at 7.21%. There is a 4.288% loan origination fee deducted from the loan by the U.S. Department of Education. The Graduate plus Loan is credit based and requires credit approval.

Credit Criteria

Credit approval is based on federally mandated criteria, not a credit score. In order to qualify, you must not have any of the following items on your credit report:

  • Any current delinquency of 90 days or more
  • Any of the following within the preceding five years of the date of the credit check: default, bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Title IV debt, open collection.

Recent changes in the law that governs the terms and conditions of Graduate plus Loans establish a specific circumstance for certain Graduate plus Loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a Graduate plus Loan applicant may qualify for a Graduate plus Loan based on extenuating circumstances if the applicant:

  • Has been or is delinquent for 180 days or less on mortgage loan payments, or on medical bill payments for the applicant or the applicant's family, AND
  • Does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to Graduate plus Loan applicants.
Credit Approval

Credit approval is valid for 90 days. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding 90 days.

If you think you may have one or more of the items outlined in the credit requirements listed above you may want to obtain your credit report in advance of applying for a Graduate plus Loan. You should work to correct negative items on your credit report as soon as possible.

Credit denial options include:

  • Applying for the loan with an endorser, which is a credit worthy loan cosigner.
  • Correct any invalid information on your credit report and reapplying.

Correspondence will be sent to Graduate Plus Loan applicants who receive an adverse credit determination. Information will include instructions regarding appealing the denial of a Graduate Plus Loan Application and securing an endorser for the loan.

Federal Direct Graduate Plus Loan Repayment

Repayment can be managed on the web site of your loan servicer, which will be assigned to you by the U.S. Department of Education. While the interest rate on the loan is fixed, interest starts accruing on the loan at the time of disbursement to TSU. Payments can be deferred until after graduation while you are enrolled at least half time. Accrued interest can be paid quarterly while you are in school or capitalized (added) to the loan when you enter repayment if you prefer. You will accrue future interest based on the higher principle balance while in repayment. The U.S. Department of Education has a loan repayment calculator you can use to help estimate your loan repayment options.

Loan Application

To apply, visit studentloans.gov. You will need to log in using your Federal Student Aid (FAFSA) pin and select "Request a Direct plus Loan". Our office will receive notification of your completed application and, if eligible, the TSU Financial Aid Office will send you an award notification to you Go Tarleton account.