The Federal Grad PLUS Loan is a credit-based loan for graduate students. Eligibility is determined by subtracting the financial aid that has been offered from the student's estimated cost of attendance. Eligible students borrow directly from the U.S. Department of Education and the University of Iowa administers the loan.
How to Apply
- Complete the Free Application for Federal Student Aid (FAFSA).
- First-time borrowers must complete Entrance Counseling and a Master Promissory Note (MPN) for Graduate/Professional students.
- Accept, reduce, or decline your Federal Direct Loan(s) for each semester in MyUI.
- When the MPN and all other requirements are complete, the loan money will be disbursed to the student’s University Bill prior to the start of classes each semester.
Federal Direct Grad PLUS Loan
- Available to graduate and professional students who have half-time enrollment
- A credit check will be performed. If you have an adverse credit history, you may still be eligible to receive a Federal Direct PLUS Loan
- You may borrow up to the Cost of Attendance minus any other financial aid
- Interest begins to accrue when the loan is disbursed and will accrue through the life of the loan
Grace Period: repayment begins six months after you graduate or cease to be enrolled at least half-time.
What to do if your Federal Direct Grad PLUS Loan is denied
Obtain an Endorser (Co-Signer)
If the Direct PLUS application is denied, you can obtain an endorser. If you are going to obtain an endorser, the following three items must be completed.
- Endorser Addendum
- The endorser must complete an Endorser Addendum. An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower becomes delinquent in making payments or defaults on the loan. The endorser cannot be the student on whose behalf a parent obtains a Direct PLUS Loan.
- A New Master Promissory Note if You Pursue an Endorser
- You, as the borrower, will need to complete a Master Promissory Note (MPN) after the endorser completes their addendum. If you intend to have multiple (i.e., fall and spring) Direct PLUS loans endorsed, after completing one MPN, wait one week before completing another MPN.
- If you have technical difficulties completing the MPN, please contact the U.S. Department of Education's Student Loan Support Center at 1-800-557-7394.
- Direct PLUS Credit Counseling
- Direct PLUS Counseling is required for all borrowers who are initially denied due to adverse credit, but later approved with an endorser. It provides information on the obligations associated with borrowing a PLUS loan and assists in making careful decisions about taking on loan debt.
Seek a Credit Appeal
In some cases, you can document extenuating circumstances by submitting an appeal with the U.S. Department of Education via the studentaid.gov website. The Department of Education allows borrowers whose credit was denied the opportunity to document either of the following situations:
- Information showing that credit reporting used in the credit denial is incorrect and/or has been corrected.
- Extenuating circumstances exist relating to the adverse credit history of the primary PLUS borrower.
Direct PLUS Counseling must be completed for all borrowers who are initially denied due to adverse credit, but later approved through a credit appeal.
9.08 %
2024-25 INTEREST RATE
for loans first disbursed
between 7/1/2024 - 6/30/2025
4.228 %
ORIGINATION FEE
For loans first disbursed between
10/1/20 and 9/30/25
Interest is additional money that you pay to a lender as a cost of borrowing money. Interest is calculated as a percentage of the unpaid principal amount that you borrowed.
Direct Loans are “daily interest” loans. On daily interest loans, interest accrues (adds up) every day.
An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan.
Federal student loans have an origination fee; therefore, the amount you may receive as a disbursement may be slightly lower than the amount you accept.