To be Eligible for Direct Graduate PLUS Loan

  1. Be enrolled at least 1/2 time (3 credits).
  2. Students must not be in default on another student loan.
  3. Be a U.S. Citizen or eligible non-citizen.
  4. Maintain Satisfactory Academic Progress.
  5. Be in good credit standing.

What is the Federal Direct Graduate PLUS Loan?

The Federal Direct Graduate 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 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.

Loan Type Borrower Type Fixed Interest Rate (For Loans disbursed between 7/1/2024- 6/30/2025) Fixed Interest Rate (For Loans disbursed between 7/1/2023- 6/30/2024) Origination Fee (For Loans originated between 10/1/2020 - 9/30/2024)
Direct Graduate/Professional PLUS Loan Graduate Students 9.08% 8.05% 4.228%

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 students 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 Apply for Direct Graduate PLUS Loan

Please complete the following steps in order to receive the Federal Direct Graduate PLUS Loan.

Federal Direct Graduate PLUS Loan Denial

If a graduate student is denied the loan, they can still receive a Graduate PLUS loan through one of these two options:

  1. Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Graduate PLUS Loan if the borrower does not repay it. The endorser will have to complete an Endorser Addendum using an Endorser Code and their own FSA ID and password.
  2. Documenting to the satisfaction of the U.S. Department of Education that there are extenuating circumstances relating to adverse credit history. There is a non-exhaustive list of examples of extenuating circumstances under the “Document Extenuating Circumstances (Appeal)” section of the Federal Student Aid website. This list also provides information on what documents are needed for each example.

If a graduate student wishes to utilize one of the two options listed above, they must also complete PLUS credit counseling. This counseling can be done on the Student Aid website using the student’s FSA ID and password. 

Federal Loan Processing Overview

  • The U.S. Department of Education will notify MSOE electronically after the borrower has completed the PLUS loan application and the MPN.
  • Borrowers 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.
  • The loan must be accepted with MSOE and both the PLUS application and MPN are completed to ensure that the loan disbursement will be credited to the student’s bill each term. 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.
  • The loan disbursement will be posted to the student account during the second week of each term. Once posted to the student account, students and parents, in the case of a Parent PLUS loan, will be notified via MSOE email when the PLUS loan funds have been disbursed.
  • Loan applications cannot be processed after the academic year ends or if the student ceases to be enrolled at least half-time.
  • Students may also be required to submit their final high school transcripts to MSOE’s admissions office before federal aid can be disbursed to their account.
  • The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s (ED’s) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, the Pell Grant program, and other Department of ED programs. There is a detailed history of federal student loans  on this site. MSOE is required to inform student/parent borrowers that the loan will be submitted to NSLDS and will be accessible by guaranty agencies, lenders, and institutions determined to be authorized users of the data system.
  • For a full review of the terms and disclosures regarding Federal Direct PLUS Loans, please read the linked Plain Language Disclosure.

Alternative Loans

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.