Federal Direct Graduate PLUS Loan

Graduate students are eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance in the Direct Loan Program. Graduate PLUS applications are available at StudentAid.gov!

Eligibility

Student must:

• Have a valid Free Application for Federal Student Aid (FAFSA) on file;
• Be fully admitted as a degree-seeking student at ISU;

• Be enrolled at least half-time when the loan is expected to be disbursed;

  Enrollment Status	Undergraduate Students	Graduate/Professional Students
  Full Time	12+ credit hours	9+ credit hours
  Three-Quarter Time	9 - 11.9 credit hours	7 - 8.9 credit hours
  Half Time	6 - 8.9 credit hours	5 - 6.9 credit hours
  Less Than Half Time	0.5 - 5.9 credit hours	0.5 - 4.9 credit hours

• Maintain Satisfactory Academic Progress (SAP) standards;
• Be a U.S. Citizen or eligible non-citizen (as defined by federal financial aid regulations);
• Not be in default on an educational loan or owe an overpayment on a federal education grant, or other federal debt, or has made satisfactory arrangements to repay that debt;
• Be a creditworthy graduate student;
• Apply for annual loan maximum eligibility under the Federal Unsubsidized Stafford Loan Program before applying for a Federal Direct Graduate PLUS loan;
• Be creditworthy:
  • Regulations provide that a PLUS loan applicant has an adverse credit history if:
    • The applicant has a history of bankruptcy, foreclosure, tax lien, or a default determination; and
    • the applicant has one or more debts that are 90 or more days delinquent or that are in collection or have been charged off during the two years preceding the date of the applicant’s credit report, but only if the total combined outstanding balance of those debts is greater than $2,085.
    • Thus, absent any other adverse credit history finding a PLUS Loan applicant whose credit check shows that the total of any debts that are 90 or more days delinquent or that have been placed in collection or charged off is $2,085 or less will not be considered to have adverse credit and therefore, will be eligible for a PLUS Loan.

How To Apply

• File the Free Application for Federal Student Aid (FAFSA).
• The electronic application is available at StudentAid.gov.
  For optimal experience, users should visit this site in Chrome or Firefox web browsers, Internet Explorer is not supported.
  • Borrowers will need to have their own FSA ID.
  • Student logs into StudentAid.gov
  • From the Account Dashboard select Applying for Aid, then Apply for a Grad PLUS Loan
  • To begin the applications, click Start
  • A Credit Check will be initiated at the end of the applications with immediate results. Credit Checks expire after 180 days.
• The loan will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.
• First-time borrowers must complete the Master Promissory Note and Entrance Counseling for Graduate PLUS Loans.
• Complete the Annual Student Loan Acknowledgment each year (optional)
• The student will receive notification directly from the U.S Department of Education on approval/denial.

Amount

A student may borrow up to the cost of attendance minus any financial aid offered for the school year.

Interest Rates and Fees

The interest rate is fixed and capitalizes annually. Loans are subject to an origination fee upon disbursement. Current rates and fees are published quarterly here: http://studentaid.ed.gov/sa/types/loans/interest-rates.

Payment may be deferred if the student is enrolled half-time. Contact Federal Student Loans to request deferment.

Disbursement of Funds

• Loan funds are applied to student accounts approximately ten days before the start of the semester.
• Half of the amount applied 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 direct educational expenses on the student's account.
• Any excess funds are refunded to the student via ACH direct deposit or sent to the student's permanent address.
• Borrowers have the right to cancel all or a portion of the loan with no penalty by submitting a loan cancelation form within 14 days of disbursement. Visit PLUS Loan Adjustment Request Form for the form.

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).

In addition, visit repayment.

Tutorial: Applying for PLUS Loans

• Go to StudentAid.gov. For optimal experience, users should visit this site in Chrome or Firefox web browsers, Internet Explorer is not supported
• Log in with your FSA ID.
• On the Account Dashboard, select Apply for Aid - then Apply for Grad PLUS Loan
• Select "Start"
• Complete the application
• Credit decision will be made at the end of the application.