Federal Direct Graduate PLUS Loan Terms and Conditions

Interest Rates

  • 7.21% fixed interest rate for Federal Direct Graduate PLUS loans first disbursed on or after July 1, 2014
  • Interest begins to accrue on the date of the first disbursement until the loan is paid in full.

Origination Fee

  • For a Federal Direct Parent PLUS loan where the first disbursement occurs on or after July 1, 2014, an origination fee of 4.288% of the loan amount is deducted proportionally each time a loan disbursement is made.


  • Repayment on a Federal Direct Graduate PLUS loan begins the day after the student's six-month grace period has expired. The grace period begins when a student graduates, withdraws, or drops below half-time enrollment during an academic term. 
  • Students can select a repayment plan and find out how and when to repay the loan.  

Federal Direct Graduate PLUS Loan Eligibility

  • Although the Federal Direct Graduate PLUS Loan is a non-need based loan, federal regulations require the student to submit a Free Application for Federal Student Aid (FAFSA).
  • The student-borrower of a Federal Direct Graduate PLUS loan must pass a credit check as part of the loan application process.

Note: If students apply for the loan and are denied due to credit reasons, they will be notified by the U.S. Department of Education and provided the opportunity to obtain an endorser.  If they choose to use an endorser and are approved, the U.S. Department of Education will notify the OSFA.