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Direct Graduate Plus Loan

Federal Direct Graduate PLUS Loan

The Federal Direct Graduate PLUS Loan program is a federally funded program that enables graduate students to take out an additional student loan to supplement their financial aid package once they have exhausted the maximum loan eligibility in the Stafford Loan program. It is not based on financial need. The Federal Direct PLUS Loan program enables students to borrow directly from the U.S. Department of Education and repay to an approved Federal Student Aid Loan Servicer, while MassArt’s Office of Student Financial Assistance originates and processes the loan.

Interest Rate and Fees

Direct Graduate PLUS Loans have a fixed interest rate of 7.6 percent and begin accruing interest 60 days after the loan is fully disbursed to the college. Direct Graduate PLUS Loans have an origination fee of 4.276 percent if disbursed on or after 10/1/16. For loans disbursed on or after 10/1/17, the origination fee is 4.264 percent. The origination fee is subtracted from the loan before disbursement.

The interest rates listed are the standard rates for the 2018-19 academic year; however, the promissory note is the final word on the correct rate.

Application Process

Loan Eligibility

Eligibility for the Graduate PLUS Loan depends on a modest credit check that determines whether the student has an adverse credit history. If a student is denied a PLUS loan, they may obtain a credit-eligible endorser to co-sign the loan. In order to receive a PLUS Loan, a student must be enrolled for at least six credits per semester.

Loan Repayment

Direct Graduate PLUS Loan repayment begins 60 days from the date the loan is fully disbursed, however, as long as you are enrolled in school on at least a half-time basis, you are eligible for an in-school deferment. While in deferment, you have the option to pay off the accumulating interest or postpone payments on your Direct Graduate PLUS Loan until you graduate or drop below half-time status. Officially, your first payment will be due within 45 days after the deferment end date. If you have any questions about the repayment of your Graduate PLUS Loan, you may contact the Direct Loan Servicing Center at 1.800.848.0979.