Another financing option for MSOE graduate students is an alternative loan. This loan is available to MSOE students but may require a co-signer. To view more information regarding this financing option and to apply, please click on the link below.
Federal Direct Graduate PLUS Loans
What is the Federal Direct Graduate PLUS Loan?
The Federal Direct PLUS Loan is a federally insured fixed rate loan for MSOE graduate students who have been approved after a credit check is preformed regardless of income or assets. The interest rate for 2019-2020 is 7.08%. The interest rate for 2018-2019 is 7.595%. The interest rates on new loans are fixed for the life of the loan; however, every July 1, each year’s new loans will have different fixed rates based on the current market rates. In addition to interest, you will also pay a loan origination fee that is a percentage of the principal amount of each PLUS Loan that you receive.
MSOE graduate students may borrow up to the cost of education minus any other financial aid the student has already received. PLUS Loans are scheduled to go into repayment 60 days after the loan’s final disbursement but can contact the loan servicer to request deferment of payments until six months after the student ceases at least half-time enrollment. Interest will accrue during the time the student is in school; however, payments to interest and/or principal can be paid during that time without penalty.
To be Eligible for Direct Graduate PLUS Loan
- Be enrolled at least 1/2 time (4 credits).
- Students must not be in default on another student loan.
- Be a U.S. Citizen or eligible non-citizen.
- Maintain Satisfactory Academic Progress.
- Be in good credit standing.
To Apply for Direct Graduate PLUS Loan
Please complete the following steps in order to receive the Federal Direct Graduate PLUS Loan.
- The student must complete the FAFSA application online at www.fafsa.gov.
- Determine the maximum amount needed for an academic year using MSOE PLUS loan calculator.
- Complete the PLUS loan application and Master Promissory Note (MPN) online at studentloans.gov using your Federal Student Aid ID to log in.
Federal Loan Processing Overview
- The U.S. Department of Education will notify MSOE electronically after the student has completed the PLUS loan application and the MPN.
- Students will receive a disclosure statement from the U.S. Department of Education providing specific information about their loan, including loan amount, fees and the expected disbursement dates.
- Students’ direct loans must be accepted and both the PLUS application and MPN are completed to ensure that the loan disbursement will be credited to their student’s bill each quarter.
- The loan disbursement will be posted to the student account during the 2nd week of each quarter. Once posted to the student account, students will be notified via MSOE email when the PLUS loan funds have been disbursed. Federal loans will have an origination fee which will be subtracted from the amount requested so the amount reflected on bill will be less than the requested amount.
- Loan applications cannot be processed after the academic year ends or if the student ceases to be enrolled at least half-time.
- For a full review of the terms and disclosures regarding Federal Direct PLUS Loans, please read the linked Plain Language Disclosure.