Federal Graduate PLUS Loan
Grad PLUS is available to graduate students who:
- are enrolled at least half time in a degree-granting program
- file the Free Application for Federal Student Aid (FAFSA)
- pass a credit check
- Maintain Satisfactory Academic Progress for Financial Aid.
How to apply
- Accept all or part of the Grad PLUS on your financial aid award in TitanConnect
- Complete a Grad PLUS Direct Loan Master Promissory Note.
NOTE: The MPN will be valid for 10 years provided a PLUS loan is disbursed within 12 months of the MPN signing.
- New borrowers must complete a Grad PLUS Entrance Interview.
- Funds are generally disbursed to student accounts at the beginning of each semester. Once the student account is paid in full, any remaining funds are disbursed to the student.
- The loan limit for each year is the annual cost of education (the "budget") minus other financial assistance. If your requested amount is too high, it will be reduced to fit within the budget.
- Your Stafford Loan eligibility must be determined before you may borrow under the Grad PLUS program. This means that some graduate students, will have their costs covered fully with Stafford Loan and may not need to use the Grad PLUS.
- Under Direct Loans, the interest rate is 7.21%.
- As with Unsubsidized Stafford Loans and private loans, interest begins to accumulate at the time the first disbursement is made. You may choose to pay the interest while in school in order to avoid "paying interest on interest" (capitalizing interest).
- The Federal Direct PLUS Loan Program requires a 4.292% origination fee.
What occurs during Grad PLUS processing?
- After the loan is accepted in TitanConnect, we confirm your eligibility for a Grad PLUS and transmit the application to the PLUS loan servicer.
- Student completes Grad PLUS MPN
- The servicer performs a credit check.
- The servicer notifies you about acceptance or rejection of the loan.
- If the loan is approved, funds are sent directly to UDM and applied against your bill.
How is Grad PLUS repaid?
- You will receive an automatic deferment while you are enrolled at least half-time. Since Grad PLUS is not a subsidized loan, interest will accrue during this time. Repayment begins immediately upon your graduation, or if you drop below half-time enrollment. Grad PLUS loans have a 6-month grace period. In case of hardship, you may request forbearance for up to 42 months.
When you near graduation (or drop below half-time) you will be given information on loan repayment. This is referred to Exit Counseling or Exit Interview.