Federal Direct PLUS Loan (Parent & Graduate/Professional Student)

What is a PLUS Loan?

How do I apply for the PLUS Loan?  

What happens if my PLUS  application is denied?

Deadline to apply

December 2, 2019:  for one term only loan - Fall 2019  

April 24, 2020:  for academic year loan, or Spring 2020 loan

What will my interest rate and origination fee be?

Interest accrues on the unpaid balance of the loan from the date of disbursement by the school until the entire principal balance is paid in full. Failure to make monthly or quarterly interest payments results in the interest being capitalized (added to the principal of the loan). 

How much money am I eligible to borrow?

Unlike other types of financial aid, the PLUS Loan is not need based. The maximum eligibility amount is determined by the student's cost of attendance minus any financial aid that the student has been awarded.

The PLUS loan can replace all or a portion of a student's financial aid award. PLUS applicants can borrow up to the full cost of attendance if the student declines all offered student loans (Subsidized/Unsubsidized).

Parents/Graduate students do not need to to apply for the entire loan amount being offered to the student (refer to MySJSU portal for the amount of the PLUS Loan eligible to borrow). Parents/students should calculate the amount they need.

PARENTS: if your student does not intend on using Federal Work Study, you can add that amount to the PLUS loan request.

What if I change my mind about the PLUS Loan after applying?

Approval of a PLUS Loan application does not commit you to accepting the loan. If approved, you must contact the Financial Aid and Scholarship Office to cancel or reduce the accepted PLUS Loan amount. You can also fill out the PLUS addendum form asking us to cancel the loan (Link to form available soon)

How will I receive my PLUS Loan funds?

If the loan is for one-semester, the loan will be disbursed in one disbursement. If the loan is a full year loan, the loan will be disbursed in two increments:

First half in the fall and the second half in the spring.

If the student owes money to San Jose State University, the university deducts all financial obligations first, and forwards the balance to the borrower.

For a PARENT PLUS loan, a check is sent to the parent if the borrower is the refund preference. Otherwise, if the student is the refund preference, a check is sent to the student or direct deposit is initiated. We encourage students to sign up for direct deposit.

When will I have to begin repaying the PLUS Loan?

Repayment and interest will apply to funds after the loan has been disbursed. The first payment of interest and principal are due within 60 days after the loan is fully disbursed.

An in-school deferment may be requested while the student is enrolled at least half time (6 undergraduate units; 4 graduate/professional units).

PARENT: If the student drops to less than half time or withdraws during the period for which the loan was intended, the entire amount of the PLUS Loan is immediately due. GRADUATE/PROFESSIONAL students: Interest that accrues will be capitalized if not paid by the student 


Philip Smith