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 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.
Fall 2012 - Spring 2013 Interest Rate:
- Fixed 7.9% while in school and during grace-period
- Fixed 7.9% during repayment
Direct Grad PLUS Loans made on or after July 1, 2006 will change to a fixed rate of 8.5%. Grad PLUS Loans made on or after July 1, 1998 through June 30, 2006 will maintain a variable interest rate adjusted each July 1, capped at 9.00%. The variable rate for these loans will be 8.02%.
Deadline to Apply
- Fall only loan: December 1
- Academic year or Spring only loan: May 1
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 the 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.
Direct GRAD Plus 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.