Federal Direct PLUS Loan

Process Overview

Fall Term bills are typically generated the third week of June and payment is due on August 1st.  Spring Term bills are typically generated the middle of November and payment is due on January 1st.

We begin processing PLUS Loan requests the first week of June and continue through the academic year.  We typically receive a credit decision within 5 days of receipt of completed request. The credit decision is valid for 90 days and must still be in effect at the time of first disbursement. Borrowers planning to use the Installment Payment Plan for the Fall Term should submit PLUS Loan requests prior to June 30th.

If a borrower is concerned about passing the credit check, we encourage you to review your own credit history at annualcreditreport.com.  The credit report is free and does not impact your credit history.

The credit decision is based on the strength of a borrower's credit. It is not based on a borrower's debt-to-income ratio.

Federal Standards for Determining Creditworthiness

The federal government completes a credit check for all PLUS Loan requests. Borrowers must meet federally defined creditworthiness standards for approval. In order to be considered creditworthy, borrowers cannot have:

  • accounts 90 days or more delinquent
  • unpaid collection accounts or charge-offs/write-offs
  • Or within the last five years:
  • bankruptcy discharges
  • foreclosures or foreclosure proceedings started
  • wage garnishments
  • tax liens
  • repossession

If a borrower is denied, there are a few options available:

  •  The borrower can appeal the decision with the Department of Education.  Supporting documentation can be supplied to clear the derogatory information and allow an over-ride and approve the loan request.
  •  The borrower can request an Endorser (co-signer) for the loan allowing approval of the loan request.
  •  Families can contact the Brown University Financial Aid Office to inquire about additional Federal Direct Unsubsidized Loans available to the student.
  •  The borrower can apply for the Installment Payment Plan administered by the Bursar’s Office.

Eligibility

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. 

Loan Amounts

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. 

Rates & Fees

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.

PLUS Loans
10-year Treasury Note rate  + 4.6% capped at 10.5%

2014-2015:

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.

2013-2014:

For all 2013-2014 PLUS Loans made after 7/1/2013, a fixed interest rate of 6.41% is applicable.  Interest begins to accrue at the time the loan is disbursed to Brown University.

For all PLUS Loans disbursed 7/1/2013 through 11/30/2013, there is a 4.204% origination fee. For all PLUS Loans disbursed on or after 12/1/2013, the origination fee is 4.288%.

The loan fee/origination fee is subtracted proportionately from each loan disbursement.

Grace Period

There is no grace period; 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.

Loan Repayment

Use the Repayment Estimator to estimate your monthly payment amount. Learn more at Repay Your Loans.

Application Forms

Click the appropriate link below for PLUS Loan request forms and details of the application process.

Parent PLUS Loan borrowers

Graduate/Professional PLUS Loan student borrowers