Money Sign IconFederal GRADUATE PLUS LOAN

 

DEFINITION

A Direct PLUS Loan is a non-need-based loan and is available to Parents of undergraduate students, or graduate students to aid in paying for educational expenses.

Current INTEREST RATE

  • The interest rate for loans first disbursed on or after July 1, 2017 and before July 1, 2018 is 7.00%.

To view interest rates on your previous subsidized loans, go to https://www.nslds.ed.gov/nslds_SA/

Origination FEE

An origination fee will be deducted from a Federal PLUS Loan before it is disbursed. The origination fee on a Federal PLUS Loan first disbursed on or after October 1, 2017, and before October 1, 2018, will have an origination fee of 4.276%. Federal PLUS Loans are not subject to the Direct Loan annual or aggregate limits; however, the maximum amount that can be borrowed is up to your Cost of Attendance.

How to APPLY

  • To receive a PLUS Loan, you must first complete the FAFSA.
  • Additionally, you must complete any other required items, which could include verification. These required items can be viewed in your myUVU student account. Log in to myUVU, go to Students, Paying For My Education, My Financial Aid Requirements, select the appropriate Aid Year.
  • For Direct Graduate PLUS Loans, you must complete the Graduate PLUS Loan Application and upload the completed application to the Financial Aid and Scholarships Office.

Direct PLUS Loans are subject to a credit check to determine the borrowers credit worthiness. The U.S. Department of Education will run credit check. If the credit check is denied, the borrower has the following options:

  • The borrower may contact the U.S. Department of Education and provide information on extenuating circumstances relating to the adverse credit history and complete PLUS Loan Counseling with the U.S. Department of Education. You can find further information on this at https://studentloans.gov/myDirectLoan/whatYouNeed.action?page=credit. If the U.S. Department of Education approves the PLUS loan borrower, the Financial Aid and Scholarships Office may continue this request. The borrower will need to contact the Financial Aid and Scholarships Office.
  • The borrower may obtain an endorser and complete PLUS Loan Counseling with the U.S. Department of Education. An endorser is someone who does not have an adverse credit history and agrees to repay the loan if the borrower does not repay it. You can find further information on this at https://studentloans.gov/myDirectLoan/whatYouNeed.action?page=credit

Basic ELIGIBILITY

  • You must be enrolled in at least 6 eligible credit hours if an undergraduate, 4.5 eligible credit hours if a graduate (waitlist hours, audited courses, courses that are not needed to complete your academic program, and some repeated courses are not considered eligible credit hours).

AWARDING

Federal PLUS Loans are not subject to the Direct Loan annual or aggregate limits; however, the maximum amount that can be borrowed is up to your (or your student in the case of a PLUS loan) Cost of Attendance. If eligible, you will be awarded the amount requested on the PLUS Loan Application. PLUS loans have two equal disbursements, usually at the beginning of each semester.

ONCE AWARDED, YOU MUST MEET OR COMPLETE THE FOLLOWING BEFORE YOUR LOAN CAN DISBURSE:

  • For graduate students, if necessary, you will need to complete entrance counseling. This can be completed approximately three business days after you accept your loans and are registered for classes. You complete entrance counseling at www.studentloans.gov.
  • If necessary, you must e-sign a Master Promissory Note at www.studentloans.gov. This can be completed approximately three business days after your loan application is complete.
  • The student must be enrolled in at least 6 credit hours for undergraduate or 4.5 hours for graduate (waitlist hours, audited courses, courses that are not needed to complete your academic program, and some repeated courses are not considered eligible credit hours).
  • The student must complete all Financial Aid Requirements listed in their myUVU student account. Log in to myUVU, go to Students, Paying For My Education, My Financial Aid Requirements, select the appropriate Aid Year.

DISBURSEMENT

After you are awarded, and if you are eligible, your loan will be sent electronically to the Bursar's Office no sooner than ten days prior to the first day of your enrolled classes. Your loan will first pay your outstanding tuition and fees and, if authorized by you, any other institutional charges. After this balance is paid, and if there is any excess federal student aid, the Utah Valley University Bursar's Office will refund the monies to you either by check through the U.S. Postal Service to the local address listed in your myUVU student account (this is the default method), or through direct deposit (which you may set up in your myUVU student account). If mailed, please allow 3-5 business days for the refund to be processed. 

The Utah Valley University Financial Aid and Scholarships Office and Bursar's Office process federal student aid disbursements and refunds every business day. This refund money may be used for educational purposes and to pay the cost of attending Utah Valley University.

Continued ELIGIBILITY

  • You must complete a new FAFSA and other application requirements each award year. For more information on the application process, visit our Need to Complete your FAFSA? webpage.
  • You must complete the Graduate PLUS Loan Application each award year in which you would like to request a PLUS loan.

How to CANCEL or DECREASE the Amount of a Direct PLUS Loan

If you choose to cancel all or part of your loan before your loan pays onto your student account: you must complete a Loan Cancellation Request Form and upload it to the Financial Aid and Scholarships Office.

If you choose to cancel all or part of your loan after the your loan have paid onto your student account: you must upload a completed Loan Cancellation Request Form to the Financial Aid and Scholarships Office and return the funds to the Cashiers Office.

If 120 days have elapsed since your loan was disbursed, the funds cannot be returned to the school and must be returned directly to your loan servicer.

Exit Loan COUNSELING

You must complete exit counseling before you or your student, withdraw, graduate, or drop below half-time enrollment (6 credit hours for undergraduate and 4.5 credits for graduate - waitlist hours, audited courses, courses that are not needed to complete your academic program, and some repeated courses are not considered eligible credit hours) even if you plan to transfer to another school. Exit counseling helps you understand your rights and responsibilities as a student loan borrower and provides useful tips and information to help you manage your loans. Exit counseling may be completed at www.studentloans.gov.

To view a PDF version of the Exit Counseling Guide for Federal Student Loan Borrowers visit https://studentaid.ed.gov/sa/sites/default/files/loan-exit-counseling.pdf.

REPAYMENT

Your loan will be placed into deferment while you are enrolled at least half-time (4.5 credits) and for an additional six months after you cease to be enrolled at least half-time. If your loan is deferred, interest will accrue on the loan during the deferment. You may choose to pay the accrued interest or allow the interest to capitalize when the deferment period ends. Your loan servicer will notify you when your first payment is due.

For more information about PLUS loan repayment, contact your loan servicer, or view https://studentaid.ed.gov/sa/types/loans/plus#when-repay

To Whom Your Federal Student Aid Information is SENT

The Financial Aid and Scholarships Office will send your Federal Pell Grant and Federal Loan information to the U.S. Department of Education. This information is then included in the National Student Loan Data System (NSLDS) and is accessible to you and authorized agencies, lenders, servicers, and institutions. You can view your complete Federal Loan and Pell Grant history in the National Student Loan Data System at www.nslds.ed.gov.