Beginning with the 2009-2010 academic year, St. Lawrence University participates in the William D. Ford Federal Direct Loan program for all Federal educational loans, including the Federal GradPLUS Loan. A Federal Direct GradPLUS Loan is a Federal loan that is an option for graduate or professional students who are attending school at least half-time. The GradPLUS Loan is in the student’s name. A credit check will be performed on all Federal GradPLUS Loan borrowers. The interest rate on a Federal Direct GradPLUS Loan is usually better than many of the alternative student loans and currently has a fixed interest rate of 7.9 percent set by the Federal government.
More information:
- The annual loan amount maximum for a Federal Direct GradPLUS Loan is determined by the cost of attendance less all accepted financial aid.
- A Federal Direct GradPLUS Loan is not need-based.
- A credit review must be performed to determine eligibility.
- There is a 4% Origination and Insurance Fee, plus an automatic 1.5 percent rebate at the time of disbursement. The net 2.5 percent fee will be deducted from the total loan amount to be disbursed.
- Federal Direct GradPLUS Loans are automatically deferred while the borrower is enrolled at least half-time (6 credit hours). Repayment begins approximately 45 days after a Direct GradPLUS Loan borrower ceases to be enrolled at least half-time.
Application Process:
For students who wish to apply for a Federal Direct GradPLUS Loan, the process is a simple two-step process as outlined below. Borrowers must complete both an application and Master Promissory Note (MPN).
Step 1. Complete the Federal Direct GradPLUS Loan application: The first step in obtaining a Federal Direct GradPLUS Loan is to complete and return the Federal Direct GradPLUS Loan application to St. Lawrence. Download and complete the application below and return it to the Financial Aid Office. Please be sure to complete the form neatly and accurately and answer all questions. Incomplete and/or illegible applications may slow the application process.
Federal Direct GradPLUS Loan Application
Step 2. Complete a Master Promissory Note: New borrowers of a Federal Direct GradPLUS Loan will also need to complete a Master Promissory Note (MPN). Borrowers will need to go to dlenote.ed.gov and select “Complete New MPN for Student Loans”, select “Graduate PLUS” and follow the nine step application process.
Remember, by signing an MPN you are agreeing to pay back any Federal Direct GradPLUS Loans that you receive to pay for your education.
Step 3. Complete your Entrance Counseling: As a condition of receiving your first Federal Direct GradPLUS Loan, all first time borrowers must complete GradPLUS student loan "Entrance Counseling". Entrance counseling needs to be completed on-line at www.dl.ed.gov. Per Federal regulations, Federal Direct GradPLUS Loan proceeds will not disburse until this entrance counseling session is completed. This entrance counseling session will inform the borrower about the overall Federal Direct GradPLUS Loan program and their rights and responsibilities. St. Lawrence University will receive the results of this completed session electronically. If you have previously borrowed a Federal Direct GradPLUS Loan, and completed the corresponding entrance counseling, then you are not required to fulfill this requirement again. |