Federal PLUS Loans
Beginning July 1, 2026, the One Big Beautiful Bill Act (OBBBA) eliminates the Federal Graduate PLUS (Grad PLUS) Loan for all new graduate and professional borrowers. Under this federal change, students entering or beginning new borrowing for graduate or professional study in the 2026–2027 academic year and beyond will no longer have access to the Grad PLUS program.
Current graduate students who have already received a Grad PLUS Loan before July 1, 2026 may continue to borrow Grad PLUS for up to three additional academic years or until they complete their current program, whichever occurs first, provided they remain continuously enrolled in the same program at the same institution.
FAQs on Graduate PLUS Federal Update
- Why is the Graduate PLUS loan being eliminated?: Congress passed the One Big Beautiful Bill Act (OBBBA) that has eliminated the Graduate PLUS loan along with other loan-related changes (such as new borrowing limits for other loan programs and the narrowing of repayment options) in an effort to simplify the federal loan system and align graduate borrowing more closely with program value. With OBBBA, Congress also seeks to provide financial guardrails to protect graduate students from rising debt levels.
- When will the Graduate PLUS Loan be eliminated? The Graduate PLUS loan will be eliminated effective July 1, 2026 corresponding to borrowing for the academic year beginning Fall of 2026.
- Who will be impacted by the elimination of the Graduate PLUS Loan? All new graduate and professional students beginning a program of study effective Fall 2026 or returning graduate and professional students who have never had a Graduate PLUS loan disbursed prior to July 1, 2026.
- What is the “legacy” (grandfathered) provision for Graduate PLUS? The legacy provision allows graduate students who have borrowed a Graduate PLUS loan previously to continue borrowing. As such, the elimination of the Graduate PLUS Loan does not impact a student who:
- Had a graduate PLUS loan disbursed any time prior to July 1, 2026
- Is continuously enrolled in the same academic program and institution.
- Can a student lose legacy status? Yes, potentially. The Department of Education has announced legacy status is upheld for students who remain continuously enrolled in the same program of study at the institution where a PLUS loan was disbursed on their behalf. Based on current federal guidance, withdrawing, transferring to another institution, or changing their degree program may forfeit legacy eligibility.
Application
The Federal PLUS Loan Program is a non-need, credit-based, federal loan available to graduate/professional students to cover educational costs. A Free Application for Federal Student Aid (FAFSA) is required of all students for whom a PLUS loan is being borrowed.
To receive a PLUS loan, you must first apply online by completing a PLUS Loan application. You may request a loan up to the cost of attendance (maximum amount) or for a specific loan amount. The application authorizes the U.S. Department of Education to check your credit history. After your application and credit check have been approved, you will need to complete a PLUS Loan Master Promissory Note (MPN). The same borrower from the application must sign the MPN.
An application is required for each year a PLUS Loan is needed.
25-26 PLUS requests cover enrollment periods Fall 2025, Spring 2026, & Summer 2026.
Interest Rates
Graduate PLUS Loans first disbursed on or after July 1, 2025 and before July 1, 2026 have a fixed interest rate of 8.94%
Loan Fees
Graduate PLUS Loans first disbursed on or after October 1, 2021 will have an origination loan fee of 4.228%. This fee covers administrative costs of the loan.
Borrowing Limits
There are no set borrowing limits for the PLUS loan; however, you may not borrow more than the cost of attendance minus any other financial assistance received. Through the online PLUS application process, borrowers can request up to the cost of attendance or a specific loan amount. For assistance calculating the maximum amount you may apply for or the amount needed to cover your out of pocket costs please contact our office.
Current regulation stipulates federal loans be distributed in a minimum of two equal disbursements, except in cases of mid-year graduates or transfers. As such, PLUS requests will be scheduled to disburse evenly between the fall/spring terms or spring/summer terms for certain graduate programs with a spring term starting date. We encourage you to calculate the amount needed for the entire academic period and apply accordingly. On an individual basis PLUS requests can be made for single term loans. However, please be advised additional loan requests made within the academic period for a future term may result in the initialization of an additional credit check.
General Eligibility & Citizenship Status Requirements for a Direct PLUS Loan
All PLUS applicants, must be a U.S. citizen or eligible noncitizen, must not be in default on any federal education loans or owe a repayment on a federal education grant, and must meet other general eligibility requirements for Federal Student Aid programs. You can find more information about these requirements including a list of eligible noncitizen statuses Federal Student Aid.
Master Promissory Note Completion Requirement
Once the PLUS request is approved an electronic Master Promissory Note (MPN) must be completed. You will be presented with this option following the online PLUS request/credit check. PLUS applicants approved without an endorser are eligible to apply for future PLUS loans for the same student under the same MPN. Applicants approved with a credit-worthy endorser will be required to complete a new MPN for any subsequent PLUS loan requests.
Credit Criteria for a Direct PLUS Loan
The PLUS loan is a credit-based loan and by applying for the PLUS loan you are authorizing the Department of Education to check your credit history. PLUS loan borrowers cannot have an adverse credit history. Therefore, an applicant 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.
If the PLUS request is denied, you, as the parent or graduate/professional student have several options:
- Credit Override/Appeal Option: You may request a review of the credit check due to inaccurate information on your credit report or if the denial is attributed to short-term delinquencies in mortgage payments or medical bills. Contact the Direct Loan Applicant Services at 1-800-557-7394 for further instruction.
- Endorser Option: You may secure a credit-worthy endorser for your PLUS loan. An endorser is someone who agrees to repay the Direct PLUS Loan if the borrower becomes delinquent in making payments or defaults on the loan. Through the studentaid.gov site under "Apply for Aid" and "Endorse a PLUS loan", an endorser will be able to electronically endorse the PLUS loan if the borrower failed the credit check and endorse a specific loan amount which may differ from the loan amount on the PLUS request.
- No Action Option: You do not wish to pursue the PLUS loan and would like to take no further action at this time.
The repayment period for all PLUS loans begins on the date the loan is fully disbursed, and the first payment is due within 60 days of the final disbursement. However, a graduate student PLUS loan borrower (as well as a parent PLUS borrower who is also a student) can defer repayment while the borrower is enrolled at least half-time, and, for PLUS loans first disbursed on or after July 1, 2008, for an additional six months after the borrower is no longer enrolled at least half-time.
The interest that accrues during these deferment periods will be capitalized if not paid by the borrower.
You will have a choice of repayment plans. How much you pay and how long you take to repay your loan(s) will vary depending on the repayment plan you choose. For questions regarding your individual options or assistance selecting the repayment plan that is best for you, please contact the Direct Loan Servicing Center at 1-800-848-0979.