Federal Direct PLUS Loans

Overview

The federal Direct PLUS program is a popular financing option for graduate students, and parents of undergraduate students.

• Borrow any loan amount up to the total student budget determined by Stanford, less any other resources.
• 7.9% fixed interest rate  
• Net loan fees of 2.5% are deducted from each disbursement of the loan.
• A credit check is conducted when you begin the loan application process. (Undergraduates whose parents do not qualify for a Direct PLUS loan can borrow additional federal Direct loan funds.)
• For the 2011-2012 academic year, undergraduate students will be required to complete the Free Application for Federal Student Aid (FAFSA) in order for their parents to use the Direct PLUS loan program.

Loan Repayment

• For graduate students repayment begins immediately after you graduate or drop below half-time enrollment and lasts ten years.
• For parents of undergraduate students repayment begins within 60 days after your loan is fully disbursed and lasts ten years. Parent borrowers may contact the Direct Loan Servicing Center to request deferment of monthly payments while the student is in school.