Federal Direct PLUS Loan - Graduates

Steps:

  1. Federal Direct PLUS Loan Request Form
  2. E-sign Your Direct PLUS Loan Master Promissory Note
  3. Entrance Counseling for Graduate/Professional Students

PLUS Counseling-is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have obtained an endorser or documents to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit history. PLUS Counseling can be completed at www.studentloans.gov.

The Federal Direct PLUS Loan is available to credit-worthy Graduate students who have exhausted their Federal Direct Stafford Loan eligibility in an academic year. Graduate students are required to first utilize the Direct Stafford Loan Program prior to borrowing under the Direct PLUS Loan Program.

Application:
Graduate students applying for a Direct PLUS Loan are required to complete a FAFSA. Apply for the academic year. The Federal Direct Graduate PLUS Loan application process involves two steps:

New Borrowers:

  • Complete the online University of Scranton Federal Direct Graduate PLUS Loan Request Form.
  • Complete the Federal Direct PLUS Loan Master Promissory Note (MPN). You must have a Department of Education issued FSA ID, Federal Student Aid ID, before completing and signing the electronic MPN.

Current Borrowers:

  • Complete the online University of Scranton Federal Direct Graduate PLUS Loan Request Form.
  • Only if the Direct Graduate PLUS Loan was approved with a credit worthy endorser in the prior year, will a new Electronic Master Promissory Note (MPN) need to be completed.

Q. Why do I have to complete the Federal Direct Graduate PLUS Loan Request Form?

A. The Financial Aid Office will originate the loan and initiate the mandatory credit check through the Federal Servicer by using the information provided on the form.

Q.  What are the next steps if the Direct Graduate PLUS Loan is denied?

A.  If the loan application is denied, you will be contacted by the Federal Servicer (in writing) and given the option of appealing the credit decision or resubmitting the application with a credit-worthy endorser. Questions concerning your credit decision should be directed to the Federal Servicer’s Applicant Service at 1-800-557-7394.

NEW:  PLUS Counseling is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have obtained an endorser or documents to the satisfaction of the U.S. Department of Education that there are extenuating circumstances related to your adverse credit hisotry.  PLUS Counseling can be completed at www.studentloans.gov.

Q. Do I have to complete the Federal Direct Graduate PLUS Loan Request Form each year?

A. Yes. Each subsequent year, you will need to go through a credit check and request the annual loan amount.

Q. If I completed a Direct Graduate PLUS Loan MPN, do I have to complete another one?

A. No. The Direct Graduate PLUS Loan MPN allows students to borrow for multiple years (up to 10 years) under one note provided you do not require an endorser.

A. Yes. If the Direct Graduate PLUS Loan was approved with a credit worthy endorser in the prior year, a new Electronic Master Promissory Note will need to be completed.

Loan Counseling:
Federal regulations require that first time Federal Graduate PLUS Loan recipients complete entrance counseling requirements before receiving the loan funds. This must be completed online.

Deadline:
Federal Direct Graduate PLUS Loan applications must be certified by the Financial Aid Office by the last day of the semester.

Interest Rate:
Loans disbursed between July 1, 2017 and June 30, 2018 have a fixed interest rate of 7.00% during this period.

Fees:
Effective December 1, 2013, sequestration of federally budgeted funds occured.

The origination fee is 4.276% from October 1, 2016 through September 30, 2017.  The amount equals 95.724% for each disbursement of the loan.

The origination fee is 4.264% from October 1, 2017 through September 30, 2018.  The amount equals 95.736% for each disbursement of the loan.

Loan Limits per Academic Year:
The maximum students may borrow in the Federal Direct Graduate PLUS Loan per academic year is the difference between cost of education minus other financial aid received.

Loan Reductions/Cancellations:
Students may request the Federal Direct Graduate PLUS Loan be reduced or canceled. The request must be in writing from the student. Through your University of Scranton email, please include your name, your Royal ID Number, and the amount you want the loan reduced to.