To be eligible to borrow the Federal Direct PLUS Loan, the student and parent must be U.S. citizens or eligible non citizens, creditworthy, and not in default on prior educational loans. The borrrower must either be a Graduate/Professional student borrowing for their own educational expenses, or a parent borrowing for their dependent undergraduate student's educational expenses.
The student must complete the Free Application for Federal Student Aid (FAFSA) in order for the PLUS Loan to be processed. The student must be enrolled at least half-time in a degree program, and making satisfactory academic progress.
The maximum loan amount that may be borrowed may not exceed the student's cost of education, minus other estimated financial assistance for that student. Loans for the full academic year will be disbursed directly to the University in two equal installments, half for each semester.
The Bipartisan Student Loan Certainty Act of 2013 amends the Higher Education Act to provide new formulas for the determination of interest rates for all Direct Loan types.
Interest rates will now be established each year for Direct Subsidized, Unsubsidized and PLUS Loans. The rate will be the sum of an index (high yield of the 10-year Treasury Note) plus an "add on". The amount of the "add on" varies based on the type of federal loan and the student's status. The interest rate, once established, will apply for the life of the loan.
10-year Treasury Note rate + 4.6% capped at 10.5%
For all 2014-2015 PLUS Loans, a fixed interest rate of 7.21% is applicable. Interest begins to accrue at the time the loan is disbursed to Brown University.
For all PLUS Loans disbursed 7/1/2014 through 09/30/14, there is a 4.288% origination fee. For all PLUS Loans disbursed on or after 10/1/2014, the origination fee is 4.292%.
The loan fee/origination fee is subtracted proportionately from each loan disbursement.
Interest will begin to accrue from the time the loan is disbursed. If a deferment is granted, the borrower will be sent quarterly interest statements and will have the option of paying the interest as it accrues. Unpaid interest will be capitalized and due at the end of the deferment period.
There is no grace period; repayment begins within 60 days after the loan is fully disbursed. However PLUS Loan borrowers may defer repayment while the student, on whose behalf the loan was obtained, is enrolled on at least a half-time basis, and during the six-month period after the dependent student ceases to be enrolled on at least a half-time basis. Borrowers must contact their federal servicer to request deferment.
Interest will accrue during the deferment period. The borrower will be sent quarterly interest statements and will have the option of payment the interest as it accrues. Unpaid interest will be capitalized and due at the end of the deferment period.
Application Process and Credit
We begin processing PLUS Loan requests the first week of June and continue through the academic year. The federal government completes a credit check for all PLUS Loan requests. The credit decision is based on the strength of a borrower's credit.
See our PLUS Loan Application Process section for details.