FALL 2016 - SPRING 2017William D. Ford Federal Direct Graduate PLUS Loan Program for Graduate Students
San Francisco State University participates in the William D. Ford Federal Direct Loan Program. Students will now apply for Graduate PLUS Loan for Graduate Students directly through the U.S. Department of Education.
What is a Graduate PLUS Loan?
The Graduate PLUS Loan is a federally funded loan from the U.S. Department of Education for graduate students who must be accepted and enrolled in a master's degree program. Students will apply for Graduate PLUS Loan directly through the U.S. Department of Education.
What will my interest rate and origination fee be?
Repayment is a fixed interest rate of 5.31% on all Graduate PLUS Loans disbursed on or after July 1, 2016. Interest accrues on the unpaid balance of the loan from the date of disbursement by the school until the entire principal balance is paid in full. Failure to make monthly or quarterly interest payments results in the interest being capitalized (added to the principal of the loan). Currently, a 4.272% origination fee is deducted upfront of each disbursement.
How much money am I eligible to borrow?
Unlike other types of financial aid, the Graduate PLUS Loan is not need based. The maximum eligibility amount is determined by the Student's Cost of Attendance minus any financial aid that the student has been awarded and accepted. The Graduate PLUS Loan can replace all or a portion of the expected resources. If the student will not be receiving financial aid of any kind, the student can borrow the full cost of attendance. Students do not have to apply for the entire amount. Students should calculate the amount they need. Please refer to your Financial Aid award offer on the SF State Gateway for the amount of Graduate PLUS Loan that you are eligible to borrow.
Am I required to take a Graduate PLUS Loan upon application?
No. Approval of a Graduate PLUS Loan application does not commit you to accepting the loan. If approved, you must contact Office of Student Financial Aid to cancel or reduce the requested loan amount.
How will I receive my Graduate PLUS Loan funds?
The Graduate PLUS Loan is disbursed to the student. If the loan is a full year loan, the loan will be disbursed half in the Fall and half in the Spring. If the loan is for one semester, the loan will be disbursed in one disbursement. If the student owes money to San Francisco State University, the university deducts all financial obligations and forwards the balance check to the student or initiates a direct deposit. We encourage students to sign up for direct deposit at Student Center Click on Enroll In Direct Deposit .
When will I have to begin repaying the Graduate PLUS Loan?
Repayment and interest will apply to funds after the loan has been disbursed. The first payment of interest and principal are due within 60 days after the loan is fully disbursed. The student can defer payment while enrolled at least half time (4 graduate units). Interest that accrues will be capitalized if not paid by the student.
Steps in Applying for a Graduate PLUS Loan
Step 1 -
- Go to www.studentloans.gov and log in with the borrower (student) FSA User ID & Password
- After logging in successfully click on "Apply for a Plus Loan" from the center of the page
- Under the type of Direct Plus Loan Request select "Complete PLUS Request for Graduate/Professional Students"
For the Award Year select 2016- 2017 and for Award Period Range
select - "August 2016 - May 2017" and complete the entire application.
After submitting the application successfully the credit results are displayed immediately on the next screen, if the credit is approved this indicates you are eligible to borrow the graduate plus loan.
Step 2 -
After the credit check is approved, the student must also complete an online electronic Master Promissory Note at www.studentloans.gov.
(This step is required for first time Graduate PLUS Loan borrowers)
- Go to www.studentloans.gov and log in with the borrower (parent) FSA User ID & Password
- After logging in successfully click on "Complete a Master Promissory Note" from the center of the page
- Under "PLUS MPN for Parents" select "Complete PLUS MPN for Graduate/Professional Students"
Step 3 -
The student must also complete an entrance loan counseling online at www.studentloans.gov(This step is required for first time Graduate PLUS Loan borrowers).
* Note - After you have completed all the steps successfully please allow up to 3 weeks for processing and Graduate PLUS loan checklist items to be updated from your to-do-list.
What happens if my Graduate PLUS Loan application is denied?
Appeal the decision by calling Direct Loan Servicing Center at 1 (800) 557-7394
Borrowers whose Graduate PLUS loan credit is denied and then approved through a credit appeal process must also complete a PLUS loan counseling. This is an additional step and separate from completing the entrance loan counseling.
- Financial Aid Advisor at email@example.com if you pursue this option. Failure to contact our office will result in this loan not being processed.
Secure an endorser. If you have decided to pursue an endorser (co-signer) , the endorser will complete the "Endorse Direct Graduate PLUS Loan" section at www.studentloans.gov
Borrowers who secure an endorser for their Graduate PLUS loan must also complete a PLUS loan counseling. This is an additional step and separate from completing the entrance loan counseling.
- Jimmie Wilder
firstname.lastname@example.org if you pursue this option. Failure to contact our office will result in this loan not being processed.