Federal Direct Graduate PLUS Loans

The Federal Direct Graduate PLUS Loan is an unsubsidized loan for graduate/professional students. PLUS Loans help pay for education expenses up to the cost of attendance minus all other financial assistance. The application process includes a credit approval requirement and interest is charged during all periods, including eligible periods of deferment. If a PLUS loan application is credit-denied, applicants may appeal the credit decision with the Department of Education or reapply with a creditworthy endorser, and will be required to complete PLUS Credit Counseling.

The One Big Beautiful Bill Act (OBBBA)—enacted into law on July 4, 2025—introduced significant changes to federal student loan eligibility and borrowing limits. Effective July 1, 2026, the Federal Direct Graduate PLUS Loan program is eliminated for new borrowers. A new borrower is one who did not receive a disbursement of any Direct Loans prior to July 1, 2026 in their current program of study.

• Loan Schedule of Reduction: This reduction will apply to all federal Direct and PLUS Loans. Loan amounts will be reduced in direct proportion to the percentage of full-time enrollment. Full-time enrollment for graduate students is nine (9) or more credits.
• OBBBA Legacy Provisions: Current students who received Direct Loans in their current program of study as of June 30, 2026 may continue under the existing rules until the expected time to completion of their current program or three (3) academic years until July 1, 2029, whichever is less. Under the legacy provisions, students can borrow Graduate PLUS Loans and are subject to the $138,500 aggregate loan limit.

The Department of Education has developed a process that all Direct Loan borrowers (subsidized, unsubsidized, and PLUS) are encouraged to complete, called the Annual Student Loan Acknowledgement (ASLA). The ASLA is intended to better assist borrowers in understanding the financial responsibility of funding their education and provide current information on a borrower's cumulative loan balance. As part of the Master Promissory Note (MPN) confirmation process, the ASLA, allows student and parent borrowers to view how much they currently owe in federal student loans, and to acknowledge that they have seen these amounts, before borrowing new loans each award year. The ASLA may be completed each year in addition to Direct Loan Entrance or PLUS Credit counseling that may be necessary. The ASLA becomes available for completion online each April.

Creditworthy borrowers may borrow up to the full cost of attendance minus any other aid received. Repayment begins six months after the last disbursement is made and can be deferred during the application process or by contacting your loan servicer to request a deferment. Direct PLUS Loans can be deferred while the graduate student is enrolled at least half-time and for an additional six months after the graduate student ceases to be enrolled at least half-time (a minimum of six graduate-level credits).

In-school deferment can be requested at the time the PLUS application is completed online at studentaid.gov. In most cases, the Direct Loan Servicing Center will automatically grant an in-school deferment on your Direct PLUS Loan based on information reported to the U.S. Department of Education by the Office of the Registrar showing that you are enrolled at least half-time. The first payment on a Direct PLUS Loan will be due within 45 days after the deferment end date. The Direct Loan Servicing Center (DLSC) will notify students 60 days before the deferment ends. The DLSC will notify you of the deferment and of your option to cancel the deferment and begin making payments on your loan. If you are unable to make payments on your Direct PLUS Loan after you leave school and your in-school deferment ends, you may request a forbearance that will allow you to temporarily postpone payments. You will have to explain why you are unable to make payments. To request a forbearance, contact the DLSC at 800-848-0979.

If the Direct PLUS Loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due. Information about the William D. Ford Federal Direct Loan Program can be found at studentaid.gov.

Federal Direct Loan interest rates change from year to year (in July) and may also change specifically for one type or the other; Subsidized or Unsubsidized, Graduate, or PLUS. For loans disbursed after July 1, 2025, the interest rate for Direct PLUS loans is 8.94 percent. Students who received loans prior to the aforementioned date and who still have balances outstanding on those loans will continue with the interest rate rules in effect at the time of their original loans. There is also an origination fee that will be deducted from the principal amount borrowed. The origination fee represents the lender's (the federal government) fee for making the loan. For Direct PLUS loans disbursed after October 1, 2025, the origination fee is 4.228 percent.

Annual and Aggregate Loan Limits for Federal Direct Unsubsidized and Graduate PLUS Loan Programs

The table below describes annual and aggregate maximum eligibility for the Federal Direct Unsubsidized and Graduate PLUS Loan Programs for students eligible for the OBBBA Legacy Provisions.

New Graduate Unsubsidized Direct Loan Limits (effective July 1, 2026)

Loan Terms:

* These amounts do not include federal student loan amounts borrowed as an undergraduate student.
** Graduate students are ineligible for Federal Subsidized Loans.

The information on the OBBBA is evolving at the time of this publishing. Information may change as federal rules and guidelines are established and the university will update this entry as new guidance is received. Students are encouraged to visit studentaid.gov for more information.