Federal Direct PLUS Loans 2009 - 2010
Direct Lending
Under this federally guaranteed loan program, parents and graduate students may borrow
up to the total amount
of education costs less any financial aid.
NOTE: In order to use PLUS loan proceeds for
Tufts bill payment, the loan
application should be completed via the process below
at least 3 weeks in advance of the billing due date.
Once the application process is complete and the loan
approved, funds
will be automatically credited (minus fees) to the
student account.
Graduate PLUS loan borrowers are required to
complete a FAFSA and borrow maximum Direct loan
first before receiving this loan. Parent
Direct PLUS loan borrowers are not required to
complete a FAFSA.
When considering a PLUS loan, keep the following points in mind:
- Interest rate on a PLUS Loan is fixed at 7.9%. The rate is determined by the federal government.
- Origination/Guarantee fee of 4% will be assessed.
Borrowers receive an up front 1.5% fee rebate that
is retained if the first 12 monthly payments are
made on time. The net fee is therefore 2.5%
** This fee is subtracted from the
amount borrowed.
- Borrower must be a U.S. citizen or permanent resident.
- Student must also be a U.S. citizen or permanent resident, and must be making satisfactory academic
progress towards a degree.
- Borrower must be credit worthy, as determined by
the absence of adverse credit on credit history.
- Applicants may borrow up to the cost of attendance less other financial aid.
- Most PLUS loans are made to cover fall and spring semester costs. The loan funds are disbursed
(minus fees) in two equal payments, 1/2 for the fall semester and 1/2 for the spring semester.
- The maximum repayment term is 10 years.
- Repayment begins 60 days after the loan is fully
disbursed, but may be deferred while the student is
enrolled at least half time.
- If a PLUS is borrowed and the borrower is subsequently totally, permanently disabled, or
deceased, the loan is forgiven.
Application for a PLUS loan should be started about
three weeks prior to the bill due date of August 2.
It is a two step process:
1. Print out, complete, and return the form
below to the Tufts Aid Office, Dowling Hall, Medford
MA 02155.
Direct PLUS loan
Request form
GRAD Direct PLUS
Request form
2. Then complete a PLUS Master Promissory Note (MPN)
on line at
https://dlenote.ed.gov/empn/index.jsp. The
borrower will be required to use his/her U.S.
Department of Education PIN to complete the online
MPN. Borrowers who do not have, or cannot
recall, their PIN should go to
www.pin.ed.gov
We will process your loan electronically and you
will be notified by the Direct Loan Servicing Center
about whether your loan is approved or
denied. When the loan is approved the funds
will be automatically credited to the student
account.
Deferments
For a
PLUS Deferment form, go
here.
Scroll down the listing and click on "PLUS loan
student in school at least Half Time Deferment
(loans disbursed on or after July 2008.)"
Other types of deferments are available, and all are
listed on that linked page.
In general, the same deferment provisions that apply
to Stafford Loans apply to PLUS Loans. Because PLUS
Loans are unsubsidized, parents and graduate and
professional degree students will be charged
interest during periods of deferment. If they don’t
pay the interest as it accrues, it will be
capitalized* (added to their outstanding principal*
balance). PLUS borrowers may defer repayment while
the student is enrolled at least half-time.*
Detailed information about postponing
repayment (deferment, forbearance, etc.)
can be found
here.
You may also contact the Direct Loan
Servicing Center by calling 1-800-848-0979 or
1-315-738-6634.
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