Federal Direct PLUS (Graduate) Loans are a kind of financial aid that allows graduate students to borrow money directly from the federal government to help pay for their education.
To receive a Direct PLUS (Graduate) Loan, graduate students must meet the following requirements:
- complete a FAFSA
- be enrolled at least half time in a Master's or PhD program in the semester in which the loan is received
- be a degree-seeking student at Michigan Tech
- meet Satisfactory Progress requirements
- accept or decline any other federal loans offered to the student
- have a good credit history
- apply for a Direct PLUS (Graduate) Loan
- be approved by the federal government to receive a Direct PLUS (Graduate) Loan
- complete any required promissory note
To apply for a Direct PLUS (Graduate) Loan a student must complete their FAFSA and submit an electronic Direct PLUS (Graduate) Loan Application. If the loan is approved, the student may also need to complete a promissory note. If one is required, the Financial Aid Office will inform the student once the promissory note is available.
A graduate student can borrow up to their cost of attendance, less any other financial aid they have.
The interest rate for Direct PLUS (Graduate) Loans paid out between July 1, 2025, and June 30, 2026, is fixed at 8.94%
- The loan origination fee for a Direct PLUS (Graduate) Loan disbursed between October 1, 2020 and September 30, 2025 is 4.228 percent of the amount borrowed.
- This fee is charged by the federal government to cover the cost of processing the loan. The federal government deducts this fee prior to the loan paying out, so the actual amount the student receives from their Direct PLUS (Graduate) Loan will be less than the amount they will have to repay.
Information about loans for students and parents will be reported to the National Student Loan Data System. That information will be accessible by authorized guaranty agencies, lenders, and schools.
The US Department of Education contracts with multiple centers to provide service for the Federal Direct Loan Program. Once the first Direct PLUS (Graduate) Loan is received, borrowers will be contacted by the servicer for that loan. The loan servicer will provide regular updates on the status of the Direct PLUS (Graduate) Loan, and also on any subsequent Direct PLUS (Graduate) Loan that are received.
Borrowers of Direct PLUS (Graduate) Loans are required to complete Exit Counseling when they graduate, leave school, or drop below half-time enrollment.
Students must start repaying their Direct PLUS (Graduate) Loans starting six months after they graduate, leave school, or drop below half-time enrollment. Multiple repayment plans are available.
Students are encouraged to investigate other financial aid that they may be eligible to receive, including possible grant assistance from their state of residence.