Graduate PLUS Loans
The Federal Graduate PLUS Loan program allows graduate and professional students to borrow at a lower fixed interest rate after the unsubsidized loan eligibility has been exhausted. The Federal Direct Graduate PLUS Loan can be used to pay for the total cost of attendance minus any financial aid you’ve been awarded. The Graduate PLUS Loan is largely dependent on the borrower’s credit rating and history. Graduate students must complete a Grad PLUS Loan application at StudentLoans.gov.
Parent PLUS Loan
Biological or adoptive parents of a dependent undergraduate student may apply for a Federal Direct PLUS loan to help meet the student’s cost of attendance not covered by other financial aid. The Free Application for Federal Student Aid (FAFSA) is required and parents must complete a parent PLUS Loan application at StudentLoans.gov.
Credit History
Parents are also required to pass a credit check when they are applying for the PLUS loan. If a parent’s application for a PLUS loan is denied based on the borrower’s credit history, the student may become eligible for an additional unsubsidized student loan. Freshmen and sophomore students can borrow up to $4000 in a Federal Direct loan, while juniors and seniors could borrow up to $5000.
PLUS Loan Entrance Counseling
- In January 2015, the Department of Education implemented changes to the adverse credit history provisions for the determination of an applicant’s eligibility for a Direct PLUS Loan.
- Parent and Graduate PLUS loan applicants who qualify for a Direct PLUS Loan by obtaining an endorser or due to a credit appeal decision, are now required to complete PLUS Loan Counseling. Applicants who are subject to the new counseling requirement must complete the counseling at StudentLoans.gov.
Interest Rates**
2021-22 interest rates on all Federal Direct Loans are fixed.
- Federal Direct Parent PLUS: 6.28%
- Federal Direct Graduate PLUS: 6.28%
**Interest rates for loans effective July 1, 2021 to June 30, 2022.
Origination Fees
An origination fee is charged by the Federal Government for Direct Loans. This fee is a percentage of the total loan amount and is deducted from each loan disbursement. You are responsible for repaying the entire amount you borrow.
Loan Type |
First Disbursement Date |
Loan Fee |
| Federal Direct PLUS Loan | On or after 10/1/21 and before 9/30/22 | 4.228% |
| On or after 10/1/17 and before 10/1/18 | 4.264% |
PLUS Loan Application Process
University of Lynchburg has recently streamlined the Parent and Graduate PLUS Loan application process and it is now completed on StudentLoans.gov.
Parents and Students first must fill out and submit the FAFSA.
Log into StudentLoans.gov. PLUS Parent Loan borrowers must sign in using their FSA ID and not the student’s.
- Select Request PLUS Loan from the menu on the left.
- Follow the steps to complete PLUS Loan application.
- Complete the School and Loan Information Section.
- Indicate the specific amount you wish to borrow.
- Select the Loan Period for the PLUS Loan.
- Complete all sections of the Borrower Information.
- The Department of Education will evaluate your credit and approve or deny the application. You will receive an immediate response.
- If your credit is approved, you will be given instructions for completing a PLUS Loan Master Promissory Note (MPN) on StudentLoans.gov, if you have not already completed one in the prior year.
- The Federal Direct Loan program will forward the approved PLUS Loan application to the Office of Financial Aid to verify enrollment and eligibility. Please be aware it may take up to 48 hours for University of Lynchburg to receive your submitted application.
- The federal government will send the “Notice of Loan Guarantee and Disclosure Statement” to you the borrower.
- The federal government will send loan disbursements to University of Lynchburg in accordance with the disclosure statement schedule.
If the PLUS Loan is denied for credit reasons, you may choose to obtain an endorser or provide documentation to the Department of Education to appeal the credit decision. Contact the Department of Education at 800.557.7394 to start the appeal or get detailed information regarding the endorser addendum.
