Financial Aid

Federal Direct Graduate PLUS Loan

Federal Direct Graduate PLUS Loans are available to graduate students if they are credit-worthy applicants. A graduate student may borrow up to the total Estimated Cost of Attendance (COA) less financial aid resources received. The student can borrow to help pay for educational expenses at Catholic University, as long as they are enrolled at least half time in a degree program while meeting all basic eligibility requirements (including Satisfactory Academic Progress).

Because funding for Federal Direct PLUS loans comes from the U.S. Department of Education, students do not have to find a lender to borrow through this program. Please disregard any offers you may receive about the Federal PLUS Loan programs offered through private lenders. Catholic University participates in the Direct Lending Program, in which students borrow their federal loan funds directly from the United States Department of Education rather than private lenders. Since Catholic University is a Federal Direct Lending institution, you may not use a private lender to apply for a Federal PLUS Loan.

A student does not have to show financial need to borrow a Federal Graduate PLUS Loan. However the Federal PLUS Loan is a credit-based loan, so the U.S. Department of Education will perform a credit check on the applicant.

Direct Graduate PLUS Loan Interest

The interest rate is a fixed 7.9 percent and is charged (accrued) on the loan from the time the loan funds are disbursed until it is paid in full.

Direct Graduate PLUS Loan Fee

In addition to interest, a Loan Origination Fee is charged as a percentage of the principal amount of each Federal Direct PLUS Loan. The U.S. Department of Education will deduct the fee before the loan disburses, so the loan amount disbursed will be less than the amount originally borrowed. The student is responsible for repayment of the entire amount, including the fee.

The Federal PLUS Loan has a 4.0 percent origination fee. However, Federal Direct Loan borrowers will receive an upfront rebate of 1.5 percent at the time of origination, based on paying your first 12 monthly payments on time. Therefore, the actual amount deducted from the gross amount of the loan borrowed is 2.5 percent. This fee reduces the amount that disburses to the student's account, so the student needs to take that into consideration when determining the amount to borrow. Please note: If the borrower fails to make 12 on-time monthly payments, the up-front rebate will be removed and the principle balance owed will be recalculated with the original 4.0 percent origination fee. For example, if $10,000 is borrowed under the Federal Direct PLUS Loan program, $250 (2.5 percent) will be deducted from the loan amount and paid directly to the U.S. Department of Education.

Direct Graduate PLUS Loan Limits

A student does not have to show need to borrow a Federal Direct Graduate PLUS loan. When indicating the amount of loan monies you are requesting, please consider what you will need for the entire academic year. Please note: Students planning to apply for a PLUS loan for the summer must complete an additional institutional application at the beginning of the summer term. A student may apply for a loan up to the estimated Cost of Attendance (COA), minus all other aid the student is receiving from all sources. The COA and the student’s total amount of financial aid can be found on the student’s award notice.

Currently there is no aggregate limit on the amount that a student may borrow from the Federal Direct PLUS Loan program.

Steps to Obtain a Federal Direct Graduate PLUS Loan at Catholic University

Step 1: Complete a Free Application for Federal Student Aid (FAFSA).

Step 2: Complete a Graduate Application for Federal Direct PLUS Loan Request available on the Office of Financial Aid's Forms page.

Step 3 (First-time Graduate PLUS Loan borrowers at Catholic University only): Complete a Federal Direct Graduate PLUS Loan Master Promissory Note (MPN) on the U.S. Department of Education's Direct Loan Master Promissory Note Web site. Once on the site, you should select the Complete New MPN for Student Loans option and then select Graduate PLUS. Follow the steps to complete the note. If you are experiencing technical difficulty signing the Master Promissory Note online, please contact the Department of Education's customer service center for borrowers toll-free at 800-557-7394.

Step 4 (First-time Graduate PLUS Loan borrower at Catholic University only): Complete a Federal Direct Graduate PLUS Loan Entrance Loan Counseling session. If you are a first-time borrower of a Federal Direct Graduate PLUS Loan at Catholic University, you must complete an entrance loan counseling session so that you will know your rights and responsibilities as borrower. The online session will take you about 20 minutes to complete.

Please note: your Federal Direct Graduate PLUS Loan will not disburse to your student account unless you complete all of the steps.

Federal Loan FAFSA Processing Deadline

In order for the Office of Financial Aid to process you for your federal loan eligibility for the fall term, we must receive your completed, valid FAFSA results from the U.S. Department of Education by November 10 of that term. If you are applying for federal loans for the full academic year (fall and spring) or for the spring term only, we must receive your completed valid FAFSA results from the U.S. Department of Education by April 10 of the spring term.

SUMMER LOANS: In order for the Office of Financial Aid to process you for your federal loan eligibility for the summer term, we must receive your completed valid FAFSA results from the U.S. Department of Education and you must complete a institutional summer financial aid application three weeks before the end of the last summer session for which you are registered.

Direct Graduate PLUS Loan Approval

After you complete the Federal Direct Graduate PLUS Loan Master Promissory Note, Graduate Entrance Counseling session and submit Catholic University's Graduate Federal Direct PLUS Loan Application indicating the amount for which you wish to be approved, the Office of Financial Aid will request approval from the U.S. Department of Education. The U.S. Department of Education will then initiate a credit check to determine the student borrower's credit worthiness. The U.S. Department of Education will mail you the results of your credit check and transmit this information electronically to the Catholic University.

If you are denied credit, you will receive an endorser form (you might still be able to receive a loan if someone, such as a relative or friend, who is able to pass the credit check agrees to endorse your loan). For further information regarding the Direct Graduate PLUS credit decision, call the Direct Loan Customer Service Center toll-free at 800-557-7394.

Requesting a Change to your Federal Direct Graduate PLUS Loan

To request an reduction or to cancel, please complete a Federal Direct Loan Reduction Request available on the Forms page.

To request an increase, please complete a Federal Direct Loan Graduate PLUS Application available on the Forms page.

Direct Graduate PLUS Loan Disbursement

If you apply for a Graduate PLUS Loan for the academic year, the loan will be disbursed to Catholic University in two equal installments - one each at the beginning of fall and spring semesters - and will be applied toward payment of tuition and fees, room and board, and other university charges on your student billing statement.

Direct Graduate PLUS Loan Refunds

The PLUS Loan will be disbursed and applied to your student account at Catholic University. Any excess funds on your account will be refunded by paper check or direct deposit (if requested). You may contact the Office of Student Accounts with billing or refund inquiries at 202-319-5036 or by email at cua-accounts@cua.edu.

Direct Graduate PLUS Loan Repayment

Repayment of the Federal Direct Loan begins six months after the student graduates or ceases to be enrolled at least half time. Generally, you'll have from 10 to 25 years to repay your loan, depending on which repayment plan (there are several) you choose. The Direct Loan Servicing Center will notify you when your first payment is due. If you do not choose a repayment plan, the U.S. Department of Education will place you on the Standard Repayment Plan, with fixed monthly payments for up to 10 years. Most Direct Loan borrowers choose to stay with the Standard Repayment Plan, but there are other options for borrowers who may need more time to repay or who need to make lower payments at the beginning of the repayment period. For additional information about the repayment plans as well as a repayment plan calculator, visit the Direct Loan Repayment Plan Web site.

You can change repayment plans at any time by going to the Direct Loan Servicing Center's Web site and logging in to your account.

Direct Graduate PLUS Loan Deferment and Forbearance

A deferment is a postponement of payment on a loan. If you can't make your scheduled loan payments but don't qualify for a deferment, you may be able to receive a forbearance. A forbearance allows you to temporarily stop making payments on your loan, temporarily make smaller payments, or extend the time for making payments. For additional information, visit the Direct Loan Deferment and Forbearance Web site.

Direct Graduate PLUS Loan Consolidation

There may be advantages to consolidating (combining) your federal loans into one loan, starting with the convenience of making a single monthly payment. Consolidation generally extends the repayment period, resulting in a lower monthly payment. This may make it easier for you to repay your loans. However, you will pay more interest if you extend your repayment period through consolidation since you will be making payments for a longer period of time. Direct Loans provides an online consolidation calculator that you can use to find out how much you'll pay each month if you consolidate. Contact the Direct Loan Consolidation Center for more information at 1-800-557-7392. You can apply for a Federal Direct Consolidation Loan at the Federal Direct Consolidation Loan Information Center.

Direct Graduate PLUS Loan Cancellation

For information, visit the Direct Loan Cancellation Web site.

Additional Direct Graduate PLUS Loan Information

Contact the Federal Direct Loan Servicing Center at www.dl.ed.gov or toll-free at (800) 848-0979.