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  
• An origination fee of 4.0% will be deducted from each disbursement.
  NOTE: Due to federal sequestration, the origination fee has increased to 4.204% for loans first disbursed after 3/1/2013. The U.S. Department of Education will contact affected borrowers directly with information about paying the increased origination fee.
• A credit check is conducted when you begin the loan application process. For more information about the credit check please visit the FAQ section of Studentloans.gov.
• Undergraduate students are required to complete the Free Application for Federal Student Aid (FAFSA) in order for their parents to use the Direct PLUS loan program.
• Undergraduates whose parents do not qualify for a Direct PLUS loan can borrow additional federal Direct loan funds.

Loan Repayment

• For graduate students, repayment begins 60 days after the loan is fully disbursed and lasts ten years. You can postpone payments of your Direct PLUS Loan while you are in school with an in-school deferment.  
• 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.