Federal Grad PLUS Eligibility
Even though the Federal PLUS Loan is available to all graduate and professional students regardless of financial need, you must still file the FASFA to be eligible. With a Grad PLUS Loan, you may borrow up to the full cost of your education, less other financial aid including Federal Stafford Loans, scholarships, grants, and tuition remission. If you receive additional aid, or if your cost of attendance is reduced through a change in residency, your Graduate Plus eligibility will be adjusted.
The Grad PLUS Loan has a higher interest rate than Federal Stafford Loans and students should exhaust their Federal Stafford Loan eligibility before applying for a Grad PLUS Loan. A credit check is required, although credit requirements are less stringent than for alternative student loans.
Determine your Federal Direct Graduate PLUS Loan Eligiblity
- Click on My Student Center
- In the “Finances” section, select “View Financial Aid”
- Select Aid Year 2014
- Grants and Scholarships are listed and accepted for you, if applicable.
- Click on the hyperlinked “Financial Aid Budget”
- The Estimated Financial Aid Budget is the maximum that you can receive in all types of Financial Aid combined for the Fall & Spring semester.
- Subtract your Financial Aid award from this budget amount and this is your remaining eligiblity that you may apply for in Federal Direct Graduate Plus Loan.
Apply for a Federal Direct Graduate PLUS Loan (Available starting April 15 , 2013)
- Go to www.studentloans.gov
- Sign In using your FAFSA Pin Number
- Click on “Request a Direct PLUS Loan”
- When completing the application the award year is 2013 – 2014
- Choose University of Baltimore from the drop down menu
- Loan amount requested, can be listed as maximum, or you may specify an amount.
- Choose the Loan Period of 8/2013 – 05/2014
- What you accept will be applied half to your fall bill, and half to your spring bill.
- Continue through the application, following the prompts.
Enrollment
To receive any federal student loans, including the Direct Grad PLUS Loan, you must be enrolled at least half time. Half time for fall and spring semesters is six (6) credits (graduate, law and APD students can be considered half time with three (3) credits during the summer semester ONLY). Undergraduate students do not qualify for the Federal Direct Grad PLUS Loan.
Federal Direct Grad PLUS Loan Limits and Terms
- The amount of Graduate PLUS Loan that a student can borrow is equal to the cost of attendance (student budget) minus all other financial aid.
- The Federal Graduate PLUS Loan is a low-interest student loan for graduate students attending at least half time. The interest rate is fixed at 7.9%. There is a loan origination fee deducted from the loan by the U.S. Department of Education.
- Unlike other federal loans, the Grad PLUS loan requires credit approval.
- The Federal Direct Graduate PLUS loan can be consolidated with other federal loans after graduation.
Refer to the Federal Student Aid Q & A for further information regarding Direct PLUS Loans for Graduate and Professional Students.
Applicant Services for PLUS Loan Borrowers
- 1-800-557-7394 8 a.m. to 8 p.m. (ET), Monday thru Friday
- 1-877-461-7010 Telecommunication Device for the Deaf (TDD)
PLUS Loan borrowers can contact Applicant Services for:
- Credit appeal overrides
- Endorser application questions
Credit Criteria
Credit approval is based on federally mandated criteria, not a credit score. In order to qualify, you must not have any of the following items on your credit report:
- Any current delinquency of 90 days or more
- Any of the following items within the preceding five years of the date of the credit report: default, bankruptcy, discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Title IV debt, open collection
Recent changes in the law that governs the terms and conditions of PLUS Loans establish a specific extenuating circumstance for certain PLUS Loan applicants who would otherwise be considered to have an adverse credit history. Specifically, a PLUS Loan applicant may qualify for a PLUS Loan based on extenuating circumstances if the applicant:
- Has been or is delinquent for 180 days or less on mortgage loan payments, or on medical bill payments for the applicant or the applicant’s family, and
- Does not otherwise have an adverse credit history as determined in accordance with the federal regulations that apply to PLUS Loan applicants
Credit Approval
Credit approval is valid for three months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding three months.
If you think you may have one or more of the items outlined in the credit requirements listed above you may want to obtain your credit report in advance. You may be able to fix an item such as the delinquency by simply making a payment and bringing your delinquency to less than 90 days. If you have had a situation with a discharge or collection item for example, you may be able to obtain a “settled in full” status if you work with the entity to reach a satisfactory arrangement. If you are able to fix an item, it is no longer considered in the credit evaluation and it may result in your credit being approved.
Credit Denial Options
- Apply with an endorser
- Correct any invalid information on your credit report that may have led to the denial
- Appeal the denial
Correspondence will be sent to Direct PLUS Loan applicants, by Direct Loans, who receive an adverse credit determination. Information will include instructions to appeal the denial of a Direct PLUS Loan application.
For additional information concerning Federal Direct Loans including interest rates, fees, consolidation, deferments, and loan calculators, see the Federal Student Aid Direct Loan Site.