Grad PLUS Loan

 

Effictive July 1, 2026 the One Big Beautiful Bill Act (OBBBA) [Pub. L. No. 119-21, 139 Stat. 72 (2025)] discontinued the  federal Direct Graduate PLUS Loan Program. Students enrolled in a graduate program as of June 30, 2026 who have previously borrowed a federal Direct Unsubsidized or Grad PLUS may be able to borrow additional Grad PLUS loans to finish their program. Federal regulations limit legacy eligibility to the lesser of 3 years or the remaining time to complete the program after July 1, 2026. (Remaining time to complete a program is defined as the published program length minus the time the student has already been in the program as of June 30, 2026). 

 

Federal Direct Grad PLUS Loan

Loan Components	Grad PLUS Loan
Enrollment Requirement	Must enroll at least half time
Loan Origination Fee	4.228% of the amount borrowed of a loan first disbursed on or after October 1, 2020 (and before October 1, 2027)
Interest Rate	Interest rates are subject to change every July 1 9.07% fixed rate on loans disbursed between July 1, 2025 - June 30, 2026
Capitalized Interest	Interest is charged from the date the funds are disbursed and capitalizes if not paid.
Borrowing Limits	Graduate students can borrow up to their cost of attendance excluding other financial aid, resources and the annual loan limit. See Direct Loan Limits by Degree.
Borrowing Conditions	Graduate student should have already activated his/her annual unsubsidized loan.
Credit History	Acceptable credit required
Repayment	Usually begins within 60 days after the loan is fully disbursed (typically the spring term). You may request a deferment while enrolled at least half time at an eligible school. Interest accumulates and capitalizes while in deferment.

Get more info

For detailed information on Direct PLUS Loans, visit the Direct Loan section of the Federal Student Aid website.