Federal Direct Grad PLUS Loan

The Federal Direct Grad PLUS Loan is not based on need and is available to graduate and professional students who are U.S. citizens or permanent residents and are enrolled at least half-time. This loan can be used to replace the Expected Family Contribution up to the cost of attendance to help meet any additional expenses that you cannot cover with the Federal Direct Loan. All Federal Direct PLUS loans are unsubsidized, meaning they begin to accrue interest immediately.

How to Apply

You can apply for a Federal Direct Grad PLUS Loan by submitting an application at www.studentloans.gov after you complete your FAFSA. You will be asked to sign a promissory note and a credit check will automatically occur upon applying for the loan. A co-signer is not required unless the loan is denied, at which time it would be recommended to acquire a co-signer.

Entrance Counseling

Loan counseling is a required online tool to help you understand your rights and responsibilities as a Direct Loan borrower. You must complete this requirement before you can receive your Direct Loan. In most cases, you will only need to complete entrance counseling once during your degree.

You can complete your entrance counseling requirement at www.studentloans.gov. Select your student population and log in with your FSA ID. Penn will be notified of your completion within 3-5 business days. 

Rates, Fees & Repayment

The interest rate for these loans is 7.08% for loans disbursed between July 1, 2019 and June 30, 2020. Origination fees are currently 4.248%.

Repayment begins 60 days after the final loan disbursement, but can be deferred (with interest accruing) up to six months after the student ceases to be enrolled at least half time.

Federal Government Resources

For more information on this loan program, we recommend this FAQ from Federal Student Aid.

For information on a specific Federal Direct Grad PLUS Loan you have borrowed, access the National Student Loan Data System (NSLDS). NSLDS is the U.S. Department of Education’s central database for federal student aid. The site displays information on loan amounts, outstanding balances, loan statuses, and disbursements. In order to use the NSLDS Student Access website, you will need to log in with your FSA ID and password.