Federal Direct Graduate PLUS Loan Information
Graduate and professional degree students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance in the Direct Loan Program. These requirements include a determination that the applicant does not have an adverse credit history, repayment beginning on the date of the last disbursement of the loan, and a fixed interest rate 7.9 percent in the Direct Loan program. They must also apply for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate/Professional PLUS loan.
Eligibility
Student must:
- Be fully admitted as a degree seeking student at ISU.
- Be enrolled at least half – time when the loan is expected to be disbursed.
- Maintain Satisfactory Academic Progress standards.
- Student must be either a U.S. Citizen or eligible non-citizen (as defined by federal financial aid regulations).
- Must not be in default on an educational loan or owe an overpayment on a federal education grant, or other federal debt, or you have made satisfactory arrangements to repay that debt.
- Must be a creditworthy graduate or professional student.
How to Apply for a Federal Direct Graduate PLUS Loan
- File the Free Application for Federal Student Aid (FAFSA)
You can file the FAFSA at http://www.fafsa.ed.gov. All requested documents will need to be submitted to the Office of Student Financial Aid. -
Complete the Federal Direct Graduate PLUS Loan Application
The Federal Direct Graduate Plus Loan Request Form must be completed and signed. Please mail or fax this form back to the Office of Student Financial Aid -
Complete the Graduate PLUS Master Promissory Note (MPN)
Complete the online Master Promissory Note (MPN) for Graduate PLUS Loans. -
Complete Federal PLUS for Graduate and Professional Student Loan Entrance Counseling
Complete the online Entrance Counseling Session -
Receive Approval/Denial
You will receive notification directly from the U.S Department of Education on your approval/denial.
How Much May I Borrow
A student may borrow the cost of attendance minus any financial aid (e.g., grants, scholarships, work-study, federal student loans) the student is already receiving for the school year.
What Are The Interest Rates and Fees
The Interest Rate is fixed at 7.9%.
Loan fee is 4% with front end 1.5% rebate. If student fails to make 12 consecutive loan payments on time,
loan fee will revert to 4%.
Method of payment
- Loan funds are sent directly to Indiana State University from the U.S. Department of Education and credited directly to your student’s account.
- If you apply for a full academic year loan, half of the amount you apply for is disbursed at the start of the fall semester and the other half at the start of the spring semester.
- Funds will first cover any charges on the student’s account. Any excess funds are released to the student via direct deposit or sent to student’s permanent address.
Repayment
To find out more about repayment options before receiving a Direct Loan, borrowers may contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).