Federal Direct Graduate PLUS Loans
What is a Federal Direct Parent PLUS Loan?
Graduate and professional degree students, enrolled at least half-time, are eligible to apply for Graduate PLUS Loans. Students are required to complete the Free Application for Federal Student Aid (FAFSA), and must also have applied for their annual loan maximum eligibility under the William D. Ford Direct Student Loan Program before applying for a graduate/professional PLUS loan. These loans are processed through the U.S. Government. Students must be credit-worthy and have no adverse credit history.
How much money can graduate students borrow?
Graduate students can borrow up to the cost of attendance (COA) for the year, minus any other financial aid received.
How do graduate students apply?
To borrow from the Graduate PLUS Loan program at Iona College, graduate students must complete a PLUS Promissory Note and submit to a credit-check online here. Unless otherwise requested, PLUS applications submitted prior to January 1 each year will be processed as two-semester (fall and spring) loan periods. PLUS applications submitted after January 1 will be processed as a one-semester (spring only) loan period. Please keep this in mind when determining the amount to borrow.
Important Notes: To qualify for a Graduate PLUS Loan borrowers must be matriculated in a graduate degree or approved certificate program. In addition, PLUS Loans require credit approval, which is valid for 90 days. To avoid disbursement delays and an additional credit review, we recommend that PLUS borrowers complete the application process no earlier than June 15 for fall/spring term (academic year) loans, and November 15 for spring term loans.
How do I receive my loan funds?
Loan funds are disbursed in two or more disbursements directly to Iona College student accounts. The Federal Government deducts a 4.288% origination fee from the loan proceeds prior to disbursement.
What is the interest rate?
Federal Direct Graduate PLUS Loans disbursed after July 1, 2014 will have a fixed interest rate of 7.21%. Borrowers will be notified of interest rate changes throughout the life of their loan. Interest is charged on the loan from the date the first disbursement is made until repayment is complete.
What are the repayment terms?
Repayment begins within 60 days after the final disbursement of each loan, unless the borrower requests a deferment from the Direct Loan Servicer either at the time of application or after the loan is finalized. The maximum repayment period is 10 years, and the minimum monthly payment is $50.00. Borrowers may be eligible to defer payments as long as enrolled at least half-time.
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