The Federal Direct Grad PLUS Loan is for graduate students enrolled in at least half-time hours. In order to apply for a Grad PLUS loan, you must file the Free Application for Federal Student Aid (FAFSA). A graduate student can borrow the total estimated cost of attendance less the financial aid the student receives for the academic year. A graduate student will be required to meet with a Student Financial Aid (SFA) Advisor to determine eligibility and complete a Grad PLUS application. The graduate student must pass a credit check and complete an online Master Promissory note in order to receive the loan.

Interest Rates

The Grad PLUS loan interest rate for the 2007-2008 academic year is a fixed rate of 7.9%. Interest will accrue at the time of the first disbursement on the loan.

Loan Fees

The U.S. Department of Education charges a 4 percent loan origination fee for processing your loan. However, Direct Loan borrowers will receive a rebate of 1.5 percent, reducing the up front fee to 2.5 percent. Upon entering repayment, borrowers must make their first 12 loan payments on time to keep this benefit. The loan fee is deducted proportionately from each disbursement of your Grad PLUS loan.

Grad Plus Application and Credit Check Form

The information we receive on your application will be used to create a Grad PLUS loan. The promissory note you complete is a master promissory note and will serve as your promissory note for the current school year as well as the promissory note for future loans. Direct Loans will notify us when you have completed the MPN. If you want to increase your Grad PLUS Loan during the year, send a signed dated letter with your name and PID.

Credit Checks

In order to borrow a Grad PLUS Loan, the student has to pass a credit check. Once we have received the application and the MPN, the Direct Loan Servicing Center will perform the credit check and notify you and us as to the results. If you have questions about the outcome of the credit check, contact Direct Loan Applicant Services at 1-800-557-7394.

Denied Credit Checks

If you do not pass the credit check, there are two options available to you.

1. You can work with Applicant Services at 1-800-557-7394 if you believe there was an error made on your credit check.
2. You can obtain a creditworthy endorser. The endorser would need to pass the credit check, agree to endorse the promissory note, and agree to repay the loan if you would fail to do so.

When we are informed by the Federal Direct Loan Servicing Center that your Grad PLUS Loan has been denied, we automatically notify you. If you seek an endorser, the promissory note that you sign is only valid for 1 year. A new promissory note will be needed for a second Grad PLUS Loan.

Disbursements

Disbursements are applied to your university bill, i.e., student account. Refunds resulting from the Grad PLUS Loan will be direct deposited into the student’s personal account, if signed up for direct deposit or a paper check, will be issued.

Repayments

Initial Grad PLUS Loan repayment begins 60 days after the final disbursement of the loan. There is no grace period for Direct Grad PLUS Loans. You can postpone payments while you are in school. As long as you are enrolled at least half-time, you will be eligible for an in-school deferment. This should be done automatically by Direct Loans. You can choose the Standard, Extended, or Graduated Repayment Plan. Interest begins to accumulate at the time the first disbursement is made. If you are experiencing difficulty making the scheduled payment, you should contact the Federal Direct Loan Servicing Center at 1-800-848-0979.

Student Eligibility

A student must meet the following requirements before any Grad PLUS Loan proceeds can be disbursed

• Enrolled at least half time (five credit hours)
• Enrolled in a degree-seeking program
• Making Satisfactory Academic Progress (SAP)