Wayne State University

AIM HIGHER

Federal Grad PLUS Loan

The Federal Graduate PLUS Loan is an unsubsidized low interest rate loan that is non-need based. Interest starts accruing on this loan at the time of disbursement although payment can be delayed until after graduation. Even though the Federal Graduate PLUS Loan is available to all students regardless of financial need, you must still file the FASFA to be eligible. The lender will perform a credit check before approving the loan.

Wayne State University is a full participant in the Federal Direct Loan Program, which offers many benefits to Wayne State University students, including:

As a full Direct Loan participant, Wayne State University will no longer be able to certify Federal PLUS Loans through private lenders.

To Apply for a Federal Direct Grad PLUS Loan

1.    Complete the Federal DIRECT Graduate PLUS Loan Request Form:

2.    First-time Federal Direct Graduate PLUS loan borrowers: 

3.    First-time Federal Direct Graduate PLUS loan borrowers:

 1-2-3 Loan Process Steps

Federal Grad PLUS Eligibility Rules

Even though the Federal PLUS Loan is available to all students regardless of financial need, you must still file the FASFA to be eligible.

With a Grad PLUS loan, you may borrow up to the full cost of your education, less other financial aid including Federal Stafford loans. The Grad PLUS Loan has a higher interest rate than Federal Stafford Loans and students should exhaust their federal Stafford loan eligibility before applying for a Grad PLUS loan. A credit check is required, although credit requirements are less stringent than Alternative Student Loans.

Enrollment Requirement: You must be enrolled at least half-time in order to be eligible for the Federal Stafford Loan. For a JD student, five credit hours is considered half time during the academic year. For an LLM student, four credit hours is considered half time. During the spring/summer semester enrollment a JD student, must be enrolled for 3 credit hours and an LLM student for 1 credit hour to be considered half time. 

 Fall or Winter
Half-Time
Full-Time
JD Student
5-9 credits
10+ credits
LLM student
4-7 credits
8+ credits

 Summer Term
Half-Time
Full-Time
JD Student
3-4 credits
5+ credits
LLM student
1 credits
2+ credits

Federal Direct Grad PLUS Loan Limits and Terms

The amount of Graduate PLUS Loan that a student can borrow is equal to the cost of attendance (student budget) minus all other financial aid.

The Federal Graduate PLUS loan is a low-interest student loan for graduate students attending at least half-time. The interest rate is fixed at 7.9%. There is a 2.5% loan origination fee deducted from the loan by the U.S. Department of Education. This loan fee includes an up-front rebate that assumes you will make 12 on-time monthly payments.

Unlike other federal loans, the Grad PLUS loan requires credit approval.

The Federal Direct Graduate PLUS loan can be consolidated with other federal loans after graduation.

Refer to the Federal Student Aid Q & A for further information regarding Direct PLUS Loans for Graduate and Professional Students.

Applicant Services for PLUS Loan Borrowers

PLUS Loan Borrowers can contact Applicant Services for:

Credit Criteria

Credit approval is based on federally mandated criteria, not a credit score. In order to qualify, you must not have any of the following items on your credit report:

Recent changes in the law that governs the terms and conditions of PLUS loans establish a specific extenuating circumstance for certain PLUS loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a PLUS loan applicant may qualify for a PLUS loan based on extenuating circumstances if the applicant -

Credit Approval

Credit approval is valid for 6 months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding 6 months.

If you think you may have one or more of the items outlined in the credit requirements listed above you may want to obtain your credit report in advance. You may be able to fix an item such as the delinquency by simply making a payment and bringing your delinquency to less than 90 days. If you have had a situation with a discharge or collection item for example, you may be able to obtain a “settled in full” status if you work with the entity to reach a satisfactory arrangement. If you are able to fix an item, it is no longer considered in the credit evaluation and it may result in your credit being approved.

Credit Denial Options

Correspondence will be sent to Direct PLUS Loan applicants who receive an adverse credit determination. Information will include instructions to appeal the denial of a Direct PLUS Loan application.  

Federal Grad PLUS Loan Repayment

Direct Loan Servicing Web Site: www.dl.ed.gov

The interest rate is fixed. Interest starts accruing on this loan at the time of disbursement although payment can be delayed until after graduation. Interest can be paid quarterly while you are in school or be added (capitalized) to the principal amount of the loan. Capitalizing interest increases the principal amount of the loan and the total cost of the loan.  You will accrue future interest based on the higher principal balance. Visit the Direct Loan Servicing Web site to use the Interest Capitalization Calculator.