Federal Loan Types of Graduate Students

There are two types of federal loans available to graduate students: Federal Direct Unsubsidized Loans and Federal Direct PLUS Loans.

Federal Direct Unsubsidized Loan

A Federal Direct Unsubsidized Loan is available to students regardless of financial need and does not require a credit check. The student is responsible for paying any interest that accrues.

Eligibility Criteria

• Be a graduate or professional student
• Be enrolled in at least half-time per semester (5 credits or more)
• Meet Satisfactory Academic Progress (SAP)
• Have a completed FAFSA on file for the current aid year
• Be in good loan standing (not in default)

Federal Direct PLUS Loans

A Direct PLUS Loan is commonly referred to as a Grad PLUS loan. The U.S. Department of Education is the lender. The maximum PLUS loan a student can borrow is the cost of attendance minus any other financial assistance that is received. Students must not have an adverse credit history. Students can apply for a Grad PLUS loan through Federal Student Aid.

Eligibility Criteria

• Be a graduate or professional student enrolled at least half-time (at least 5 credits)
• Meet the general eligibility requirements for federal student aid
• Be in good loan standing (not in default)
• A credit check will be performed during the application process.
  • Students who have adverse credit history may still receive a Grad PLUS loan through one of these two options:
    • Obtaining an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Grad PLUS loan if you do not repay it.
    • Providing the U.S. Department of Education documentation that there are extenuating circumstances related to your adverse credit history.
  • With either loan option 1 or option 2, a student must complete credit counseling for PLUS loan borrowers.
  • Credit checks are valid for 180 days from the approval date. If an endorser was used and a change in the loan amount is needed to increase the loan, a new credit check will be required.