Graduate PLUS Loan

The Direct PLUS Loan is unsubsidized, so interest accrues while the student is enrolled at least half-time and during deferment periods. Eligibility is not based on financial need, and graduate students and parents of undergraduates may borrow up to the amount of the student’s Cost of Attendance, minus any other financial assistance a student receives.

The Direct PLUS Loan may be of particular interest to students and parents who: 

• are not eligible for other types of financial aid
• have unusual costs above the standard student expense budgets
• have remaining financial need after other forms of financial aid have been awarded
• wish to borrow all or part of their Student Aid Index

PLUS Loans offer advantages compared to private education loans, including the stability of federal funding, a fixed interest rate, and repayment and deferment options. See the Eligibility, Loan Terms, and Requirements section below and the Comparing Loan Types page for details.

Students must submit a Free Application for Federal Student Aid (FAFSA) when applying for a Grad PLUS Loan. Borrowers must have an acceptable credit history or a loan endorser with an acceptable credit history.

Key information about PLUS

• Because credit reports are only valid for a limited time and we process PLUS Loan applications in July, we wait until early April to accept PLUS applications so that only one credit check is required.
• We will assume that your application is for the fall/winter terms. If you want the loan for one term only, advise us as soon as possible. We begin sending PLUS applications to the federal processor in early July. Eligibility is determined when your application is processed in July.
• Contact our office if you require a paper PLUS Loan application (this option delays credit check results until the application is processed).

Eligibility Criteria

• Non-need-based
• The graduate student is the borrower
• Student must be enrolled at least half-time in a graduate-level program
• Borrower must be a U.S. citizen or eligible noncitizen
• Borrower cannot be 90 days or more delinquent on the repayment of any debt or the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of a Title IV debt during the last five years

Loan Terms

Visit the Federal Student Aid website for the latest loan rate information.

Additional Information and Requirements

• Borrower must complete the Free Application for Federal Student Aid (FAFSA)
• Borrowers accepting PLUS Loan funds for the first time must complete an online Master Promissory Note and Direct Loan Entrance Counseling and Exit Counseling (Note: This is not the same as the Financial Awareness Counseling Tool on the same site). See Completing Your Loan Requirements below.
• Exit Counseling is required when students graduate or drop below half-time.
• More information from the U.S. Department of Education

1. Complete a Free Application for Federal Student Aid (FAFSA), if you have not already done so.
2. In mid-April or later, visit studentaid.gov. Do not use studentloans.com, which is a commercial website.
3. Sign in and select "Apply for a PLUS Loan" under the Graduate/Professional Students section using your U.S. Department of Education FSA ID. If you need an FSA ID, you can create one on the Federal Student Aid website.
4. Follow the steps to complete the application and credit check. In the School Name section, be sure to select University of Michigan-Ann Arbor.
5. The results of your credit check will be available immediately. If your credit is approved, you will be given instructions for completing a PLUS Loan Master Promissory Note, if you have not already completed one. If your credit is not approved, you will have the option to obtain an endorser, appeal the credit decision, or not pursue the loan.
6. If you are borrowing through the PLUS Program for the first time, you must also complete Direct Loan Entrance Counseling at studentaid.gov. Entrance Counseling is NOT the same as the Financial Awareness Counseling Tool.

If you are a Direct PLUS Loan borrower, you will be required to complete three Direct Loan Program requirements: sign a master promissory note, complete entrance counseling and complete exit counseling.

Master Promissory Notes

Parents and students borrowing for the first time through the Direct Loan Program must complete a Direct Loan Master Promissory Note (or MPN) to receive their loan funds. The MPN authorizes U-M to credit the Direct Loan funds to the U-M student's account. Once you complete the MPN, you will not have to complete another Direct Loan MPN for 10 years. If you have accepted other federal loans (e.g., Perkins, Health Professions, or Nursing Loans), you will need separate promissory notes for those loans. The Office of Financial Aid will notify you of how to complete them. Visit the Master Promissory Note page for details about completing your MPN.

If you prefer, you may complete a paper MPN, but there are more steps involved before approval and your loans could be delayed. To complete a paper MPN, sign in at studentaid.gov; select "Complete MPN" to complete the MPN electronically, or "Print MPN" to print, complete, and mail a paper MPN to our office.

Entrance and Exit Counseling

Entrance Counseling: You must complete Direct Loan Entrance Counseling on the U.S. Department of Education's studentaid.gov website under the "Complete Counseling" link. This interactive counseling session and quiz helps students develop budgets for managing educational expenses and also understand their loan responsibilities. You must complete the counseling before your loan funds can be disbursed to you. (Note: Entrance Counseling is not the same as the Financial Awareness Counseling Tool on the same site. Taking a demo counseling session will not fulfill your requirement.) 

Exit Counseling: This is required for Direct Loan student borrowers who are graduating or dropping below half-time enrollment. This counseling session helps borrowers understand their rights and responsibilities in repayment and helps them choose a repayment plan. You must use your Department of Education FSA ID to access this counseling session. To complete the Exit Counseling session, go to the studentaid.gov website. Click the "Complete Counseling" link and follow the link to "Exit Counseling" to begin. (Note: Exit Counseling is not the same as the Financial Awareness Counseling Tool on the same site. Taking a demo counseling session will not fulfill your requirement.)

You must sign all of your loan documents and students must be enrolled at least half-time to receive your loan funds. See Disbursement of Your Aid Funds for information about how your loan will be paid to you. Each time you borrow through the Direct Loan program, you will automatically receive your loan funds unless you decline them (see Accept, Decline, or Reduce Awards).