Federal Direct PLUS Loan - Graduates

Steps:
  1. Federal Direct PLUS Loan Request Form
  2. E-sign Your Direct PLUS Loan Master Promissory Note

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 Personal Identification Number (PIN) before completing and signing the electronic MPN. If you do not have a Federal PIN, or have lost your PIN, you may obtain one at the Federal PIN Website.

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.

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.

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.

Aggregate Loan Limits:
There is no aggregate limit.

Interest Rate:
Loans disbursed between July 1, 2013 and June 30, 2014 have a fixed interest rate of 6.41% during this period.  

Fees:
Effective December 1, 2013, sequestration of federally budgeted funds occured.  The Direct Graduate PLUS Loan origination fee increased to approximately 4.288%.  The amount equals 95.712% for each disbursement of the loan. 

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.

Repayment:
Federal Direct Graduate PLUS Loan repayment for both the principal and the interest generally begins within 60 days after the loan is fully disbursed. There is no grace period for these loans. This means interest starts to accrue as soon as the first disbursement is made. The student may qualify for an in-school deferment as long as they are enrolled at least on a half-time per semester basis. A student may take up to 10 years to repay the loan, depending upon the amount borrowed. Students may also pay the balance of the loan, plus any interest due, early and without a penalty.

Direct Loan Servicers:    

You may find your actual servicer by visiting the NSLDS Student Access.

Federal Direct Loan Consolidation:

A Consolidation Loan allows students to combine one or more of your federal education loans into a new loan that offers you several advantages such as one monthly payment, flexible repayment options, or reduced monthly payments. Before making a decision to consolidate your federal student loans, consider factors such as the affordability of your monthly payments, the number of payments you need to make to multiple lenders, the interest rates on each of your loans, and how much you are willing to pay over the long term. For more information, call the Federal Direct Consolidation at 1-800-557-7392.

Apply:

Direct Loan Consolidation

National Student Loan Data System (NSLDS):

Students and parents with federal loans will have loan information submitted to the National Student Loan Data System (NSLDS), which will be accessible to guaranty agencies, lenders, and schools. It is recommended that students and parents with federal loans visit the NSLDS Student Access website.  You will need your Federal Student Aid PIN to access the website; you have used the PIN when electronically signing your loans or when completing your FAFSA. You can request a duplicate PIN be sent to you.