Federal Grad PLUS Loan

Information Kiosk between Sweeney Hall and Event Center

Financial aid must be awarded before a PLUS loan application can be processed. 


Deadline to submit Fall 2017 - Spring 2018 application:

  • December 1, 2017, for Fall only loans.
  • April 27, 2018, for academic year or Spring 2018 only loans

The Federal Direct Grad PLUS Loan is for graduate and professional students enrolled at least half-time in a master's or professional degree program, and who wish to borrow beyond their annual aggregate Federal Stafford loan limits. Students must meet credit eligibility requirements. Students with an adverse credit history, may receive a Federal Direct Grad PLUS Loan if they obtain an endorser who does not have an adverse credit history.

Enrollment Requirements

Students must be continuously enrolled in at least four (4) units (half-time enrollment) each semester as a graduate student to receive the loan. If units drop below half-time enrollment at any time during the loan period, and/or if the student has not received satisfactory grades for the minimum number of units required, he/she may not be eligible for the loan the subsequent semester.

Students who are auditing classes or taking classes for "no credit" are not eligible for any financial aid towards those registration fees.

Interest Rates:

2016-17 - 6.31%

2015-16 - 6.84%

The Direct Loan interest rates for loans first disbursed between July 1, 2013 and June 30, 2014 are fixed. Under the new interest rate structure, all Direct Loans, except Direct Consolidation loans, will be "variable-fixed," meaning students would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan. There is also an interest rate cap at 10.50% for graduate PLUS loan.

The interest rates are calculated using a base 10-year Treasury Note Index of 1.81% plus an add-on amount for each loan program - 4.60% for graduate PLUS loan.

Origination Fee

The origination fee for the Graduate PLUS loan is 4.272% of the amount borrowed. For example, a loan for $10,000 will have an origination fee of $427. These amounts are subtracted from the amount that will be disbursed.

Repayment Information

Repayment begins 6 months after you graduate or 6 months after you fall below half-time status. You will be contacted by your loan servicer. Your loan servicer will provide regular updates on the status of your Graduate Direct PLUS Loan and will provide you with information on how and when to repay your loan.

Disbursement of Funds

Disbursement of funds begins the first week of the semester and continues on a weekly basis. Academic year Grad PLUS loans are disbursed to student's account in two equal installments usually at the beginning of each semester. Financial Aid funds are applied towards any current outstanding debt owed to the university (i.e., tuition, fees, etc.). Remaining funds, if any, are refunded to the student by the Bursar's Office. View the Bursar's Office website for more information on the refund process. 

Borrowing Guidelines

We strongly encourage all PLUS loan borrowers to use a repayment calculator to know the effects of loan indebtedness and estimate monthly payments ahead of time.  

Loan Application Process

Step 1: Student must have completed FAFSA, submitted requested documents, and have a Financial Aid award. Do not apply for a Grad PLUS Loan prior to being awarded.

Step 2: Submit the 2017-2018 Grad PLUS Loan application to the Financial Aid and Scholarship Office (FASO).

Step 3: Once the Direct Grad PLUS Loan application is received, information is forwarded electronically to the Direct Loan Processor for a credit check approval. FASO will receive an electronic notice of approval or denial from the U.S. Dept. of Education. 

Step 4: FASO will electronically certify a student's loan eligibility and the amount they may borrow based on their financial aid award.

Step 5: A message will be sent to student's MySJSU that directs students on-line to sign the PLUS Master Promissory Note (MPN), if required. PLUS loan counseling is required if the student has an adverse credit history. PLUS loan counseling is optional for all other Graduate PLUS borrowers.

Exit Loan Counseling

Students must complete Exit Loan Counseling within sixty (60) days of the last date of attendance at SJSU.