Federal Direct PLUS Loan for Graduate Students

Introduction

Columbia College has been approved by the Secretary of Education to participate in the Federal Direct Student Loan Programs (FDSLP) and Federal Direct Parental Loan Program (FDPLP). Columbia does not participate in the Federal Family Educational Loan Program (FFELP).

The FDSLP and FDPLP programs allow students and parents to borrow directly from the Treasury of the United States, rather than from a lender such as a bank or credit union. Additionally, FDSLP and FDPLP loans will not need to be "guaranteed" by an outside guarantee agency, as they are federally guaranteed.

*Eligibility
The student borrower must meet the following criteria:

Be a U.S. citizen or eligible non-citizen
Not be in default on any student loan or owe a federal grant repayment
Be in compliance with the Columbia College Chicago Satisfactory Academic Progress Policy
Be enrolled at least half-time (6 credit hours) or approved Thesis credit. Meet other eligibility requirements as applicable

Loan Amounts

Student borrowers may borrow a Graduate PLUS loan for an amount up to the student's cost of attendance minus other financial aid received. The maximum amount is listed on your award letter. We recommend that you borrow the minimum amount needed to cover your educational costs. Complete the 'Estimate Your Costs Worksheet' to help determine your loan amount.

Loan Fees and Repayment

An origination fee of 4% of the total loan amount is deducted from the borrowed amount by the lender. Student borrowers are notified of this at the time of loan approval. The loan disbursement amount(s) reflect the deduction of this loan fee.
For PLUS Loans disbursed on or after July 1, 2006, the interest rate is fixed at 7.90 for Direct PLUS Loans. Interest is charged from the date of the first disbursement until the loan is paid in full. The loan is deferred while the student is enrolled for at least 6 credit hours. Federal Direct Graduate PLUS Loan information is also available at http://studentaid.ed.gov.

Graduate PLUS Loan Procedures

A processed FAFSA application, for the award year in which the student is enrolled, must be on file with Student Financial Services prior to submitting a Graduate PLUS Loan application. To complete a FAFSA application log onto www.fafsa.ed.gov. The Graduate PLUS Loan application must be completed by the student and submitted to Student Financial Services.
The student borrower should complete the Electronic PLUS Loan Master Promissory Note for Graduate students and Combination - Stafford and PLUS Loans Entrance Counseling online after receiving notification from Student Financial Services to do so. This process does require that the student borrower have a federal PIN. To apply for a federal PIN log onto www.pin.ed.gov. Student Financial Services will continue to send notification to the student borrower's email address until confirmation has been received from the lender that this form has been completed and processed.
Student Financial Services determines eligibility and forwards student borrower information to Federal Direct Lending for credit check. Notification of credit decision will be mailed to the student borrower by the lender.
Student Financial Services will disburse funds to student's account as long as student meets *eligibility requirements. If the disbursed amount exceeds charges on the student's account, a refund check is issued to the student.

Adverse Credit History

If your Graduate PLUS Loan is denied by the U.S. Department of Education's Direct Loan Servicing Center due to adverse credit history and you indicated you would seek an endorser, please contact Applicant Services for more information at 1-800-557-7394 regarding credit appeal overrides and endorser application questions.
If your Graduate PLUS Loan is denied by the U.S. Department of Education's Direct Loan Servicing Center due to adverse credit history and you indicated you would seek an endorser, you have 14 days to obtain an endorser. After 14 days, if you have not obtained an approved endorser, your loan application will be terminated.
Click here for the Federal Direct PLUS Loan Application for Graduate Students(PDF)