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What are PLUS Loans?

Federal PLUS Loans are loans designed for graduate and professional degreed students and parents of undergraduate students to help with the payment of education expenses. Direct PLUS Loans are eligible to borrowers at schools who participate in the Direct Loan Program.

Key Features of a Direct PLUS Loan:

1. The borrower must have a good credit history

2. These loans have a fixed interest rate of 7.9%

3. The US Department of Education is the lender

4. The max loan amount is determined by the school (the cost of attendance) minus other aid that has already been received
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