Direct Plus loan (for graduate/professional students)
- For graduate and professional students
- Unlike parent PLUS loan, this loan is in the student's name and based on the student's credit rating.
- Loan enters repayment as soon as it is fully disbursed:
- You can request deferment while in school.
- For loans first disbursed on or after 1 July 2008, the student can request deferment while in school and until six months after he or she graduates, withdraws, or drops below half-time enrolment.
- Interest accrues beginning from the date the loan is fully disbursed, though you can choose to pay it later if you are in a deferment status.
- If you choose not to pay the accruing interest, it will be added to the principal amount of your loan and will increase the amount you have to repay.
- If you pay the interest as it accumulates, you will repay less in the long run.
To be eligible for a Grad PLUS Loan you must:
- Complete the FAFSA (Free Application for Federal Student Aid) for the loan period
- Establish eligibility for the maximum annual amounts of Federal Stafford
- Not have an adverse credit history
Interest rate
- Loans first disbursed on or after 1 July 2006 have a fixed interest rate of 7.9 per cent.
Loan limits
The annual maximum that may be borrowed under this program is the difference between the cost of education minus any financial aid received. There is no aggregate maximum.
