The Direct PLUS Loan

Direct PLUS Loans are unsubsidized loans that are supplemental to the student's Direct Subsidized and Unsubsidized Loans. They are available to assist parents of undergraduate dependent students and the graduate/professional students finance the full cost of education. Qualifying parents and graduate/professional students can borrow up to the total cost of education including tuition, room, board, books and travel. 

Loan Amounts

  • The maximum Direct PLUS Loan amount is based on the student's cost of attendance minus all other financial aid awarded to the student.
  • The school determines the amount the parent may borrow and notifies the student via the Award Notification on vision.oru.edu.
  • The Graduate/Professional student may request the Direct Graduate PLUS Loan be included as a part of their Financial Aid Award, if the Direct Unsubsidized Loan has been exhausted for the aid year.
  • Students may choose to accept or decline all or part of the loan award.
  • The school may be required to adjust the loan amount if the student's FAFSA or enrollment changes. 

Interest Rate

  • The interest rate is increased from 6.41% to 7.21% fixed rate for new Direct Parent PLUS and Direct Graduate PLUS Loans made on or after July 1, 2014 and before July 1, 2015.
  • Interest is charged during all periods.  

Loan Fee Rates

Important changes to the Direct PLUS Loan Fee:

  • The Loan Origination Fee will increase from 4.288% to 4.292% for new Direct PLUS Loans where the first disbursement is made on or after October 1, 2014 and before October 1, 2015.

Eligibility

  • In order to qualify for a Direct Parent PLUS Loan you must be the biological or adoptive parent of the student, or the spouse of the parent and your income and assets were reported on the FAFSA.
  • The parent borrower and the graduate/professional student borrower must be a U.S. citizen or eligible noncitizen and pass a credit check to qualify.
  • If the parent or graduate/professional student has adverse credit history, the borrower may be able to apply with an endorser (co-signer) who has good to excellent credit.
  • Students of parents whose credit has been denied will be eligible to receive an additional Direct Unsubsidized Loan based on the independent student loan limits for their grade level. 

Repayment

  • Traditional repayment for the Direct Parent PLUS Loan begins 60 days after the second disbursement.
  • A parent can request to defer payment while the student is enrolled in school at least half-time and during the six-month grace period after graduation.
  • Payments for the Direct Graduate PLUS Loan are deferred while the student is enrolled in school at least half-time and during the six month grace period after graduation. 
  • The borrower can make interest-only payments or allow the interest to be capitalized into the balance of the loan.
  • Minimum payment is $50 per month depending on the amount borrowed.
  • A Standard Repayment Term is 10 years (extended, graduated and income sensitive plans are also available).

Click on https://studentloans.gov/myDirectLoan/index.action to complete the Direct PLUS Loan Request (Application) and the Direct PLUS Loan Master Promissory Note.