Federal Loans
Direct PLUS Loans
1. Purpose and Elgibility:
Direct PLUS Loans are federal student loans offered through the William D. Ford Federal Direct Loan Program. There are two types of Direct PLUS Loans:
Parent PLUS Loans: Available to eligible parents of dependent undergraduate students.
Graduate/Professional PLUS Loans: Available after July 1, 2026, only to eligible graduate or professional students who qualify for the federal interim exception.
The borrower must meet applicable federal student-aid requirements. The student for whom the loan is borrowed must generally be enrolled at least half-time in an eligible program at an eligible institution.
PLUS Loans are subject to a federal credit check. A borrower must not have an adverse credit history unless the borrower qualifies by obtaining an eligible endorser or documenting extenuating circumstances to the satisfaction of the U.S. Department of Education.
Graduate/Professional PLUS Loans beginning July 1, 2026
Graduate and professional students generally may not receive new Graduate PLUS Loans for periods of enrollment beginning on or after July 1, 2026.
A graduate or professional student may remain eligible under the federal interim exception if the student:
Was enrolled in the applicable program of study at the institution as of June 30, 2026;
Received a disbursement of any Direct Loan for that program before July 1, 2026; and
Continues enrollment in that program and otherwise maintains eligibility.
The student does not have to have previously received a Graduate PLUS Loan. A prior Direct Unsubsidized Loan disbursement for the applicable program may satisfy the prior-loan requirement.
The interim exception is available only during the student’s expected time to credential. This period is the lesser of:
Three academic years; or
The published length of the program minus the portion of the program completed before July 1, 2026.
Withdrawing, changing programs, changing institutions except under certain federally recognized circumstances, or exceeding the expected time to credential may end eligibility for the interim exception.
2. Interest Rates:
Direct PLUS Loans have fixed interest rates. The rate assigned to a particular loan remains the same for the life of that loan.
Federal student-loan interest rates are established under federal law and may change each award year for newly issued loans. Direct PLUS Loan rates are generally higher than the rates for Direct Subsidized and Direct Unsubsidized Loans.
Current interest rates are available on the Federal Student Aid website.
3. Borrowing Limits:
Beginning July 1, 2026, new borrowing limits apply to Parent PLUS Loans and to graduate and professional student borrowing.
Parent PLUS Loans
For a parent whose dependent student qualifies for the interim exception, the parent may generally continue to borrow up to the student’s cost of attendance minus other financial assistance during the student’s expected time to credential.
If the student does not qualify for the interim exception, Parent PLUS borrowing is limited to:
Annual limit: $20,000 per dependent student; and
Aggregate limit: $65,000 per dependent student.
The annual loan amount may not exceed the lesser of $20,000 or the student’s cost of attendance minus other financial assistance.
The $65,000 aggregate limit applies collectively to Parent PLUS Loans borrowed on behalf of the same dependent student, including loans borrowed by more than one parent or at more than one institution. The aggregate limit is determined without regard to amounts previously repaid, forgiven, canceled, or otherwise discharged, except as provided under federal rules.
Graduate and Professional Students
Graduate and professional students who qualify for the interim exception may continue to receive Graduate PLUS Loans up to the cost of attendance minus other financial assistance during their expected time to credential.
Students who do not qualify for the interim exception may not receive Graduate PLUS Loans. Their applicable Direct Unsubsidized Loan limits are:
Graduate students: $20,500 annually, with a $100,000 aggregate limit.
Professional students: $50,000 annually, with a $200,000 aggregate limit.
Certain health-professions students: The applicable graduate or professional limit, based on the program’s federal classification.
A $257,500 lifetime maximum aggregate loan limit also applies to student borrowers subject to the new limits. This lifetime maximum generally includes qualifying federal loans received for undergraduate, graduate, and professional study, including prior Graduate PLUS Loans. Parent PLUS Loans borrowed on behalf of a dependent student are not included in the student borrower’s lifetime maximum.
Students eligible for the interim exception cannot elect to use the new graduate or professional loan limits instead of the pre-July 1, 2026 limits during the exception period.
4. Credit Check:
A federal credit check is required for a Direct PLUS Loan. The credit check evaluates whether the borrower has an adverse credit history under federal standards. This is not the same as using a traditional credit score to determine the interest rate.
A borrower with an adverse credit history may still qualify by:
Obtaining an eligible endorser who does not have an adverse credit history; or
Documenting extenuating circumstances related to the adverse credit information to the satisfaction of the U.S. Department of Education.
A borrower who qualifies through an endorser or documented extenuating circumstances must complete PLUS Credit Counseling before receiving the loan. PLUS Credit Counseling is different from the entrance counseling required of first-time graduate or professional student borrowers.
5. Repayment Options:
Repayment options depend on whether the borrower is a parent or a graduate/professional student, when the loans were received, the types of loans held, and whether the loans have been consolidated.
Available options may include:
A standard or tiered standard repayment plan with scheduled monthly payments.
Other repayment plans available for qualifying loans received under earlier federal requirements.
An income-driven repayment plan when both the borrower and the loans meet the applicable eligibility requirements.
Public Service Loan Forgiveness when the borrower works full-time for a qualifying employer, makes 120 qualifying monthly payments, and meets all other program requirements.
Parent PLUS Loans are not directly eligible for most income-driven repayment plans. Consolidation may make certain repayment options available, but the available plan depends on when the loans were received and current federal requirements.
For Parent PLUS Loans, eligibility for Public Service Loan Forgiveness is based on the parent borrower’s qualifying employment—not the dependent student’s employment.
Borrowers should use the Federal Student Aid Loan Simulator or contact their federal loan servicer to determine which repayment options are available.
Additional information is available on the Federal Student Aid repayment plans webpage.
6. Loan Fees:
Direct PLUS Loans have a federal loan origination fee. The fee is deducted proportionately from each disbursement, so the amount credited to the student’s account will be less than the amount borrowed. The borrower remains responsible for repaying the full amount of the loan.
Current loan fee information is available on the Federal Student Aid website.
7. Application Process:
The student must complete the Free Application for Federal Student Aid (FAFSA) before a Parent PLUS or eligible Graduate/Professional PLUS Loan can be processed.
The borrower must also:
Complete the appropriate Direct PLUS Loan application;
Consent to and pass the applicable federal credit check or complete the requirements associated with an adverse credit decision;
Complete a Master Promissory Note;
Complete any required loan counseling; and
Satisfy any additional institutional application or documentation requirements.
The institution determines the borrower’s final eligibility and the maximum loan amount based on the student’s cost of attendance, other financial assistance, applicable annual and aggregate loan limits, and other federal eligibility requirements.
Graduate/Professional PLUS Loans are available beginning July 1, 2026, only to students who qualify for the federal interim exception.
8. Master Promissory Note (MPN):
Before receiving a Direct PLUS Loan, the borrower must complete a Master Promissory Note. The MPN is a legally binding agreement under which the borrower promises to repay the loan, accrued interest, and applicable fees.
The MPN explains the loan’s terms and conditions and the borrower’s rights and responsibilities. Loan acceptance through the institution may be a separate step.
9. Responsibilities of Borrowers:
Direct PLUS Loan borrowers are responsible for:
Repaying the loan, accrued interest, and applicable fees.
Borrowing only what is needed for authorized educational expenses.
Providing accurate information during the application process.
Keeping the institution and loan servicer informed of changes in contact information or other relevant circumstances.
Understanding the applicable interest rate, fees, repayment terms, and total amount owed.
Completing required counseling.
Making required payments on time.
Monitoring eligibility for any repayment, forgiveness, or discharge program.
For a Parent PLUS Loan, the parent—not the dependent student—is legally responsible for repayment.
10. Changes Effective July 1, 2026
Beginning July 1, 2026, the following changes take effect under the Working Families Tax Cuts Act, formerly known as the One Big Beautiful Bill Act:
Graduate/Professional PLUS Loans are eliminated for students who do not qualify for the interim exception.
Parent PLUS Loans are subject to a $20,000 annual limit and a $65,000 aggregate limit per dependent student unless the student qualifies for the interim exception.
Graduate and professional students who do not qualify for the interim exception are subject to new Direct Unsubsidized Loan limits.
A $257,500 lifetime maximum aggregate loan limit applies to student borrowers subject to the new limits.
Annual Direct Loan limits must be reduced for students enrolled less than full-time, including graduate or professional students receiving Graduate PLUS Loans through the interim exception.
Institutions may establish lower loan limits for students or parents associated with particular programs when the limits are applied consistently and in accordance with federal requirements.
These requirements are subject to detailed federal eligibility rules. The institution will determine each borrower’s eligibility based on federal guidance and the borrower’s individual circumstances.