Welcome to our comprehensive guide on Direct Student Plus Loan, a financial aid program specifically designed for graduate and professional students. This article will provide you with all the information you need to know about this loan, including eligibility criteria, interest rates, repayment options, and frequently asked questions. We hope that after reading this article, you will have a clear understanding of Direct Student Plus Loan and will be able to make an informed decision about whether it is the right financing option for you.
What is Direct Student Plus Loan?
Direct Student Plus Loan is a federal loan program that helps graduate and professional students pay for their education expenses, such as tuition, room and board, and other educational costs. This loan is offered by the U.S. Department of Education and is available to students who need additional funding after they have received their maximum amount of Direct Unsubsidized Loans.
Direct Student Plus Loan is also known as Grad Plus Loan and is available to students enrolled in a graduate or professional program at an eligible institution. This loan requires a credit check, and the borrower must not have an adverse credit history to be eligible.
Eligibility Criteria for Direct Student Plus Loan
To be eligible for Direct Student Plus Loan, you must meet the following criteria:
Criteria |
Description |
|---|---|
Enrollment status |
You must be enrolled at least half-time in a graduate or professional program at an eligible institution. |
Citizenship |
You must be a U.S. citizen or an eligible non-citizen. |
Credit history |
You must not have an adverse credit history. |
Loan limits |
You must have reached your maximum eligibility for Direct Unsubsidized Loans. |
Interest Rates and Fees
The interest rate for Direct Student Plus Loan is fixed for the life of the loan and is set by the U.S. Department of Education. The current interest rate for the 2021-2022 academic year is 6.28%.
In addition to the interest rate, Direct Student Plus Loan also charges an origination fee, which is a percentage of the total loan amount. The origination fee for Direct Student Plus Loan is 4.228% for loans disbursed on or after October 1, 2020, and before October 1, 2021.
Repayment Options
Direct Student Plus Loan offers several repayment options, including standard repayment, extended repayment, graduated repayment, and income-contingent repayment. The standard repayment plan has fixed monthly payments over a 10-year period, while the extended repayment plan has fixed monthly payments over a period of up to 25 years.
The graduated repayment plan has lower monthly payments at the beginning of the repayment period and gradually increases over time. Income-contingent repayment is a plan where the monthly payments are based on the borrower’s income and family size and can be changed annually based on changes in income and family size.
FAQs
Q1. Can I apply for Direct Student Plus Loan if I am enrolled in an undergraduate program?
No, Direct Student Plus Loan is only available to graduate and professional students.
Q2. What is the maximum amount of Direct Student Plus Loan I can borrow?
The maximum amount of Direct Student Plus Loan you can borrow is the cost of attendance minus any other financial aid you have received.
Q3. Do I need a cosigner to apply for Direct Student Plus Loan?
No, you are not required to have a cosigner to apply for Direct Student Plus Loan, but if you have an adverse credit history, you may be required to have one.
Q4. Can I consolidate my Direct Student Plus Loan with other federal student loans?
Yes, you can consolidate your Direct Student Plus Loan with other federal student loans through the Direct Consolidation Loan program.
Q5. How long does it take to process my Direct Student Plus Loan application?
The processing time for Direct Student Plus Loan can vary, but it typically takes a few weeks to process.
Q6. Can I change my repayment plan after I have started repaying my Direct Student Plus Loan?
Yes, you can change your repayment plan at any time by contacting your loan servicer.
Q7. What happens if I miss a payment on my Direct Student Plus Loan?
If you miss a payment on your Direct Student Plus Loan, you may be charged a late fee, and it may negatively impact your credit score. If you continue to miss payments, your loan may go into default.
Q8. Can I defer my Direct Student Plus Loan if I go back to school?
Yes, if you go back to school at least half-time, you can defer your Direct Student Plus Loan payments.
Q9. Can I have my Direct Student Plus Loan forgiven?
Direct Student Plus Loan is not eligible for loan forgiveness programs such as Public Service Loan Forgiveness or Teacher Loan Forgiveness.
Q10. Can I refinance my Direct Student Plus Loan?
Yes, you can refinance your Direct Student Plus Loan with a private lender, but you will lose the benefits and protections of federal student loans.
Q11. What is the difference between Direct Unsubsidized Loan and Direct Student Plus Loan?
Direct Unsubsidized Loan is a federal loan program available to undergraduate, graduate, and professional students, while Direct Student Plus Loan is only available to graduate and professional students. Direct Unsubsidized Loan does not require a credit check, while Direct Student Plus Loan does.
Q12. Can international students apply for Direct Student Plus Loan?
No, Direct Student Plus Loan is only available to U.S. citizens and eligible non-citizens.
Q13. How can I apply for Direct Student Plus Loan?
To apply for Direct Student Plus Loan, you must fill out the Free Application for Federal Student Aid (FAFSA) and then fill out a Direct Student Plus Loan application on the Federal Student Aid website.
Conclusion
Direct Student Plus Loan can be a great financing option for graduate and professional students who need additional funding to pay for their education expenses. This loan offers low interest rates, several repayment options, and various benefits and protections. However, it is important to do your research and understand the eligibility criteria, interest rates, and repayment options before applying for this loan. We hope that this guide has provided you with all the information you need to know about Direct Student Plus Loan and has helped you make an informed decision.
If you have any further questions about Direct Student Plus Loan or need help with your financial aid application, we recommend reaching out to your school’s financial aid office or a financial aid advisor.
Closing Disclaimer
The information provided in this article is for educational purposes only and should not be considered financial or legal advice. We recommend consulting with a financial or legal professional before making any decisions regarding your finances or student loans. This article was written based on the most current information available at the time of writing, and we cannot guarantee the accuracy or completeness of the information provided.