Federal Direct Grad PLUS Loans
St. Lawrence University participates in the William D. Ford Federal Direct Loan program for all Federal educational loans, including the Federal Grad PLUS Loan. A Federal Direct Grad PLUS Loan is a Federal loan that is an option for graduate or professional students who are attending school at least half-time. The Grad PLUS Loan is in the student’s name. A credit check will be performed on all Federal Grad PLUS Loan borrowers. The interest rate on a Federal Direct Grad PLUS Loan is usually better than many of the alternative student loans and currently has a fixed interest rate of 7.08% set by the Federal government.
- The annual loan amount maximum for a Federal Direct Grad PLUS Loan is determined by the cost of attendance less all accepted financial aid.
- A Federal Direct Grad PLUS Loan is not need-based.
- A credit review must be performed to determine eligibility.
- There is a 4.248% origination fee for loans disbursed on or after October 1, 2018 and before October 1, 2019. The origination fee for loans disbursed on or before October 1, 2019 and before October 1, 2020 is 4.236%.
- Students are not required to begin making payments until six months after they graduate, leave school, or drop below half-time enrollment (6 credit hours).
- There are several repayment options available that are designed to meet the individual needs of borrowers, including income-driven repayment plans that determine the monthly payment amount based on income and family size. Students should contact the loan servicer with questions regarding repayment options. Students generally have 10 to 25 years to repay the loan, depending on the repayment plan.
For students who wish to apply for a Federal Direct Grad PLUS Loan, the process is a simple two-step process as outlined below. Borrowers must complete both an application and Master Promissory Note (MPN). A FAFSA ID is required to complete steps 1 and 2.
Step 1. Complete the Federal Direct Grad PLUS Loan application: The first step in obtaining a Federal Direct Grad PLUS Loan is to complete an application at Studentaid.gov. Please note - when completing the PLUS loan application, an amount or the words "maximum amount" must be listed in the "maximum loan amount required" field. If you need assistance in calculating the amount to borrow, send an email request to email@example.com and include your name and daytime phone number where you can be reached.
Step 2. Complete a Master Promissory Note: New borrowers of a Federal Direct Grad PLUS Loan will also need to complete a Loan Agreement (Master Promissory Note). Borrowers will need to go to Studentaid.gov to complete this step. Remember, by signing an MPN you are agreeing to pay back any Federal Direct Grad PLUS Loans that you receive to pay for your education.
Step 3. Complete your Entrance Counseling: As a condition of receiving your first Federal Direct Grad PLUS Loan, all first time borrowers must complete Grad PLUS student "Loan Entrance Counseling". Entrance counseling needs to be completed on-line at Studentaid.gov. Per Federal regulations, Federal Direct Grad PLUS 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 Grad PLUS 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 Grad PLUS Loan, and completed the corresponding entrance counseling, then you are not required to fulfill this requirement again.