Federal Direct Graduate PLUS Loan
The Federal Direct Graduate PLUS Loan Program is available to graduate and professional students, if they are credit-worthy applicants. A student may borrow up to the total of the Estimated Cost of Attendance less resources and other financial aid. The U.S. Department of Education is the lender for the Direct PLUS Program.
Because the funding for Federal Direct Graduate PLUS Loans comes straight from the U.S. Department of Education, students do not have to find a lender to borrow through this program.
Please disregard any offers you may receive about the Federal Graduate PLUS Loan program offered through a bank or other lender. Since Eastern Michigan University is a Federal Direct Lending university, you may not use a private lender to apply for a Federal Direct Graduate PLUS Loan.
How to apply for a Graduate PLUS Loan
- Complete a FAFSA (Free Application for Federal Student Aid).
- Complete a Graduate PLUS Loan Application at www.studentloans.gov.
Federal Direct Graduate PLUS Loan Limits
The maximum Graduate PLUS Loan you may borrow per academic year is equal to your cost of attendance minus other financial aid (including Federal Direct Subsidized and/or Federal Direct Unsubsidized Loans for which you are eligible). There is no aggregate maximum loan limit for the Graduate PLUS Loan.
The Federal Direct Graduate PLUS Loan is a fixed-rate loan with a 7.9% interest rate effective July 1, 2006. Interest will begin to accrue as soon as the loan disburses.
The Federal Direct Graduate PLUS Loan Program requires a 3% origination fee and a 1% default fee. There's an up-front rebate of 1.5%, so the net disbursement is 97.5% of the gross loan amount. The borrower must make the first 12 payments on time to keep the up-front rebate.
Graduate PLUS Repayment
The first payment is due within 60 days after each loan is fully disbursed.
Principal and interest payments may be deferred if you meet deferment requirements. Your Federal Direct Graduate 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, pleasecontact the U.S. Department of Education's processing center at 800-848-0979.
You have the right to cancel all or part of your federal loan disbursement for each quarter. Submit a request to the Office of Financial Aid within 14 days from the date you receive official notification that loan funds have credited to your university account.
Graduate PLUS disbursement
Disbursement of the Graduate PLUS funds depends on when the loan is approved. By law Graduate PLUS funds cannot be disbursed until 10 days prior to the first day of classes each semester. If that date has passed and the approval process has been completed, EMU will generally disburse the funds within 2 days of approval.
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