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Federal Direct Graduate PLUS Loan

The Federal Direct Parent Loan for Undergraduate Students is a federal loan that credit-worthy graduate students can borrow for themselves. Student applicants must meet eligibility requirements to receive federal student aid and meet satisfactory academic progress requirements. The Federal Direct Graduate PLUS Loan is a form of aid that must be repaid by the student borrower.

Federal Direct Graduate PLUS Loan Overview

How to Apply

  1. Student must complete the Free Application for Federal Student Aid (FAFSA).
  2. Once the student receives a Financial Aid Award, the student may apply for the Federal Direct Graduate PLUS Loan.
  3. After completing the Request for the Federal Direct Graduate PLUS Loan, the student must complete Entrance Counseling and sign a Master Promissory Note.

Interest Rate

For loans first disbursed on or after July 1, 2015 and prior to July 1, 2016: 7.21% fixed

For loans first disbursed on or after July 1, 2016 and prior to June 30, 2017: 6.31% fixed

Additional Loan Fees

Origination Fee: 
  

For loans first disbursed on or after October 1, 2016 and before October 1, 2017
4.276%
For loans first disbursed on or after October 1, 2017 and before October 1, 2018
4.264%

 

Credit Requirements

Yes, borrower must be deemed credit-worthy. Credit denied applicants who would like to attempt to resolve the denial or apply for the Federal Direct Graduate PLUS Loan with a credit-worthy endorser (co-borrower) can contact Direct Loan Applicant Services by calling (800) 557-7394.

Annual Loan Maximums

Cost less aid.

Aggregate Loan Maximum

None

Enrollment Requirement

Student must be enrolled at least half-time (at least 3 graduate credit hours).

Disbursement

For a given term, loan funds are disbursed on Tuesday of week 2. Funds are applied directly to the student's account. If the student's account is paid in full and any Federal Direct Graduate PLUS Loan funds remain, you may contact the Business Office at businessoffice@otterbein.edu or 614.823.1150 to request a refund check.

Grace Period

None. Repayment begins within 60 days after the loan is fully disbursed.

Minimum Monthly Payment

$50

Maximum Repayment Period

10 to 25 years depending upon your repayment plan. Visit the U.S. Department of Education's Federal Direct Loans website for more information.

Deferment/Forbearance

A Federal Direct Graduate PLUS Loan borrower may receive a deferment while he or she is enrolled on a at least a half-time basis. Deferment/forbearance may be available under other circumstances.*

Federal Loan Consolidation

Available under certain circumstances. Visit the Federal Direct Loan Consolidation website for more information.

*Contact Direct Loan Borrower Services at (800) 848-0979 or visit the StudentLoans.gov.