Federal Grad PLUS Loan
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 who wish to borrow beyond their annual aggregate Federal Stafford loan limits. Students must meet credit eligibility requirements. Students who are determined to have an adverse credit history and have been denied may receive a Federal Direct Grad PLUS Loan if they obtain an endorser who does not have an adverse credit history.
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 proceeds the subsequent semester.
2013-14 Interest Rate
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.
2012-13 Interest Rate
- Fixed 7.9% while in school and during grace-period
- Fixed 7.9% during repayment
Deadline to Apply
- December 6, for one-term enrollment (fall only)
- May 1, for academic year (Aug-May), and one-term enrollment (spring only)
The first payment of principal and interest on a Grad PLUS Loan is due sixty (60) days after the loan has been fully disbursed. Delayed Repayment Option: If requested, repayment can be delayed until six months after units drop below half-time or upon graduating. You must request this option by contacting your direct loan servicer.
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.
Loan Application Process
Step 1: Student must have completed FAFSA, submitted requested documents, and have a Financial Aid award. Please do not apply for a Grad PLUS Loan prior to being awarded.
Step 2: Submit Direct Grad PLUS loan application to the Financial Aid and Scholarship Office (FASO). Applications can be downloaded by clicking the FORMS link on the FASO home page.
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: FASO will send a message via my.sjsu.edu that directs students on-line to sign the Master Promissory Note (MPN), if required.
Exit Loan Counseling
Students must complete Exit Loan Counseling within sixty (60) days of the last date of attendance at SJSU.