Federal Graduate PLUS Loan

Terms and conditions of the federal Graduate PLUS Loan include:

  • Annual maximum for the Federal Grad PLUS is the Cost of Attendance less other Estimated Financial Aid. There currently is no aggregate maximum on this loan.
  • Available to U.S. citizens or permanent residents
  • Interest Rates:
    • For loans disbursed prior to July 1, 2013, the interest rate is 7.9% and is fixed for the life of the loan.
    • For loans disbursed after July 1, 2013 through June 30, 2013, the interest rate is 6.41% and is fixed for the life of the loan.
    • Note: The Student Loan Certainty Act of 2013 re-establishes the interest rate for federal Direct student loans from a fixed rate to a fixed-variable interest rate. This means that the new interest rate is set each spring and the rate will be fixed for the life of the loan for any federal direct loan that disburses between July 1 of that year and June 30 of the next year.
  • The interest on the Graduate PLUS loan is paid by the student and not the federal government.
  • Interest begins to accrue when the funds are disbursed to the student. Student may choose to make regular interest payments while in school, or have the interest capitalized at repayment
  • The Federal Direct Graduate PLUS Loan has a 4.204% origination fee.
  • Maximum loan amount equals cost of attendance minus Stafford loans, Perkins loans, and any scholarships and other resources.
  • Repayment begins 90 days after the final disbursement, but students qualify for an in-school deferment as long as you are enrolled at least half-time.
  • Depending on the loan limit, the maximum repayment period can last up to 25 years if the loan is not consolidated with other federal loans. If the loan is consolidated with other federal loans, the repayment can extend up to 30 years depending on loan limit.

Terms and conditions are subject to change according to federal law.  For more information about the Federal Graduate PLUS loan program, visit the Chicago Office of Financial Aid.