PLUS Loan
A PLUS Loan enables parents to borrow for each dependent student. Graduate and professional students are eligible to borrow for their education.
As a borrower, you may request up to the total unmet need listed in your financial aid award. If you will not be utilizing the Federal Work-Study award offered, that amount may be added to the total unmet need and increase total borrowing eligibility. If you request to borrow an amount that exceeds eligibility, Drexel will reduce the requested amount to comply with federal guidelines.
The federal government established a customer service line dedicated to address the problems and concerns of borrowers. If you have questions, call the Direct Loans Borrower Customer Service number at 1-800-557-7394.
Eligibility
- Parents of dependent undergraduate students enrolled at least half-time (Parent PLUS Loan) or graduate/professional degree students enrolled at least half-time (Graduate PLUS Loan)
- Borrowers must be U.S. citizens or eligible noncitizens and have a satisfactory credit history (income-to-debt ratio is not considered)
Annual Loan Limit
- Up to the total unmet need listed in your financial aid award. If you are not using your Federal Work-Study award, that amount may be added to your total unmet need amount.
Cumulative Loan Limit
- There is no cumulative limit for PLUS loans
Interest Rate
- Currently, the interest rate is fixed at 7.9 percent
- Interest begins to accrue from the time the loan is disbursed
Additional Fees
- Origination and default fees of 4 percent are deducted from loan proceeds
Disbursements
- At the beginning of each term of enrollment, including co-op
Repayment
- The parent of a dependent undergraduate student (Parent PLUS Loan) or graduate/professional degree student (Graduate PLUS Loan) is responsible for repayment
- The length of repayment is between 10 and 25 years, depending on amount owed and type of repayment plan
- Begins within 60 days of the final loan disbursement
- The lender may allow deferment of payment until the student is finished school. Contact the lender to inquire about this option.
How to Apply
The Direct PLUS Loan request is a four-step Web form. The borrower must sign into StudentLoans.gov with his or her federal student aid PIN. A borrower who does not have a PIN can request one via the Federal Student Aid PIN site.
The four steps to obtain a PLUS Loan are:
- Personal Information
- Student and Loan Information
- Review Application
- Credit Check and Submit
In addition to providing basic demographic information and completing a credit check, the Direct PLUS Loan request allows borrowers to provide additional details to the school including award amount information. Borrowers can request a specific amount they wish to borrow, or can request that the school determine the maximum amount they are eligible to receive by selecting the Maximum Amount Indicator.
The federal government established a customer service line dedicated to address the problems and concerns of borrowers. If you have questions, call the Direct Loans Borrower Customer Service number at 1-800-557-7394.
Master Promissory Note
A signed Master Promissory Note (MPN) is required to be submitted only once and remains valid for up to 10 years.