Federal Loans
Direct PLUS Loans
1. Purpose and Elgibility:
Direct PLUS Loans, also known as Parent PLUS Loans and Graduate/Professional PLUS Loans, are federal loans offered through the U.S. Department of Education. These loans are designed to provide financial assistance to:
Parents of dependent undergraduate students (Parent PLUS Loans)
Beginning July 1, 2026, parent borrowers may be subject to new annual and aggregate borrowing limits unless their student qualifies for the federal limited exception.
Graduate/professional students who meet the federal “limited exception” criteria (Graduate/Professional PLUS Loans)
Beginning July 1, 2026, Graduate/Professional PLUS Loans are discontinued for most students. Only students who meet the limited exception may continue borrowing PLUS Loans. To qualify, the student must:
Have been enrolled in their graduate/professional program on or before June 30, 2026,
Have borrowed a Direct Loan for that same program before July 1, 2026, and
Remain continuously enrolled in the same program at the same school.
PLUS Loans are credit-based, and eligibility depends on the borrower's creditworthiness. Borrowers must not have an adverse credit history to qualify. If they do, they may still be eligible with an endorser (co-signer) or by demonstrating extenuating circumstances.
Important: Major federal changes to PLUS Loans take effect July 1, 2026. These changes affect eligibility, borrowing limits, and the availability of Graduate PLUS Loans. See the section “10. Changes Effective July 1, 2026” below.
2. Interest Rates:
Direct PLUS Loans have fixed interest rates that are determined by Congress and can vary from year to year. These rates are generally higher than those for other federal student loans, such as Direct Subsidized and Unsubsidized Loans. Borrowers can check the Federal Student Aid website or contact their loan servicer for the most up-to-date interest rate information.
3. Borrowing Limits:
Beginning July 1, 2026, PLUS Loan borrowing limits change significantly:
Parent PLUS Borrowers
If the student qualifies for the limited exception → Parents may borrow up to the cost of attendance minus other aid.
If the student does not qualify → Parents may borrow up to $20,000 per year with a $65,000 aggregate limit.
Graduate/Professional Borrowers
Graduate PLUS Loans are discontinued except for limited-exception borrowers. Most graduate/professional students will rely on Direct Unsubsidized Loans with new limits:
Graduate students: $20,500/year, $100,000 aggregate
Graduate students previously in professional programs: $20,500/year, $200,000 aggregate
Professional students: $50,000/year, $200,000 aggregate
Lifetime maximum: $257,500
4. Credit Check:
To apply for a Direct PLUS Loan, the borrower must undergo a credit check. The credit check assesses the borrower's credit history to determine eligibility. Adverse credit history includes issues like bankruptcies, unpaid collections, and defaults on loans. If a borrower has an adverse credit history, they must complete PLUS Counseling within 30 days of the credit decision to remain eligible.
5. Repayment Options:
Direct PLUS Loan borrowers have several repayment options available:
Standard Repayment: Fixed monthly payments over a ten-year term.
Graduated Repayment: Payments start lower and increase over time.
Extended Repayment: Fixed or graduated payments over an extended term (up to 25 years).
Income-Driven Repayment (IDR) Plans: Payments are based on your income and family size, making them more manageable if your income is lower or unpredictable. Click here for more information about IDR plans.
Public Service Loan Forgiveness (PSLF): If you work in a qualifying public service or nonprofit job and make 120 qualifying payments, your remaining loan balance may be forgiven.
Borrowers may review repayment options using the Loan Simulator. You can also learn more about repayment options here.
6. Loan Fees:
Direct PLUS Loans may have loan fees, which are deducted from each disbursement. These fees are typically higher than those associated with other federal loans.
7. Application Process:
To apply for a Direct PLUS Loan, borrowers must complete the PLUS Loan Application and undergo a credit check. Graduate/professional students applying for Direct PLUS Loans must have submitted the Free Application for Federal Student Aid (FAFSA). Parents applying for Parent PLUS Loans for dependent undergraduate students must also ensure the student has submitted the FAFSA.
The PLUS application allows borrowers to:
Request deferment while the student is enrolled
Authorize the school to use loan funds for charges other than tuition/fees
Request a specific loan amount or allow the school to determine the amount
Update or reduce the loan amount after approval
Schools may have additional requirements or internal processes.
Graduate PLUS applications will only be available to limited-exception borrowers beginning July 1, 2026.
8. Master Promissory Note (MPN):
Once approved for a Direct PLUS Loan, borrowers must sign a Master Promissory Note (MPN), a legal document outlining the terms and conditions of the loan.
9. Responsibilities of Borrowers:
Direct PLUS Loan borrowers are responsible for:
Repaying the loan, including interest.
Informing the loan servicer of any changes in contact information.
Complying with the terms and conditions of the loan.
Meeting any loan forgiveness or discharge criteria for which they may qualify.
10. Changes Effective July 1, 2026
Beginning July 1, 2026, the following federal changes to PLUS Loans take effect under the FAFSA Simplification Act and related regulations:
Key Changes
Graduate/Professional PLUS Loans are eliminated for most students.
Parent PLUS Loans now have new annual and aggregate limits unless the student qualifies for the limited exception.
Graduate/professional students will rely primarily on Direct Unsubsidized Loans with new borrowing limits.
Borrowers with adverse credit must complete PLUS Counseling.
Schools may apply additional institutional borrowing limits.