Federal Direct PLUS Loans for Graduate Students | Financial Aid

IMPORTANT: The One Big Beautiful Bill Act (OBBBA) signed in July 2025 introduced several changes to federal student loans beginning July 1, 2026. Unless students meet the legacy provision, the Federal Graduate PLUS Loan is not an option after July 1, 2026. If students do not meet the legacy provision and need additional loan funding, private loans are an option.

Please Note: Federal guidance continues to evolve as the U.S. Department of Education finalizes implementing regulations. Information reflects the most current guidance available.

Legacy Provision

To qualify for legacy provision:

• Any Federal Direct Loan funds, Unsubsidized or Graduate PLUS, were disbursed to the student’s account prior to July 1, 2026.
• Student is enrolled in the same graduate program as they were prior to July 1, 2026 when federal loan funds were disbursed.

If you qualify for legacy provision:

• You can borrow Graduate PLUS Loan under the legacy provision for the lesser of 3 academic years or the remainder of the student’s current program.
• Must be continuously enrolled at Carroll and not change program to maintain legacy provision.

General Information

• Must be enrolled at least 3 graduate credits necessary for your degree
• Must exhaust Federal Direct Loan before borrowing a Graduate PLUS Loan
• Subject to credit check, but applicant with adverse credit history may be able to obtain the loan with an endorser (cosigner)
• Interest starts accruing at the time of disbursement
• No repayment required while enrolled at least half time
• Standard repayment is 10 years

Annual loan amount

• Maximum annual amount is student’s cost of attendance minus other financial aid
• NEW for 2026-27 - Annual loan amounts will be adjusted based upon student’s actual enrollment for the academic year. Students enrolled/completing less than 12 credits for the academic year may have their loan amount reduced.

Interest rate - Fixed rate of 8.94% for loans first disbursed between July 1, 2025 and June 30, 2026. Fixed rate of 9.08% for loans first disbursed between July 1, 2024 and June 30, 2025.

Fees - 4.228% is deducted from the loan proceeds for loans first disbursed after Oct. 1, 2020 and before Oct. 1, 2026. For example, on a $10,000 PLUS loan, $423 will be kept as a loan fee and therefore $9,577 will be credited to student’s account when it is disbursed to the school.

Applying for a Federal Direct Graduate PLUS Loan

1. Complete the Free Application for Federal Student Aid (FAFSA) at studentaid.gov/fafsa
2. Student must be meeting Satisfactory Academic Progress (SAP) Standards.
3. Student cannot be in default on a Federal Student Loan or owe an overpayment on a Federal Student loan or grant.
4. Complete the Graduate PLUS Request Process at studentaid.gov. You will need to login to this site by clicking the blue "Log In" button.
5. First time borrowers at Carroll need to complete Graduate Entrance Counseling at studentaid.gov. Make sure to select the correct counseling for a Graduate or Professional Student.
6. Complete the Grad PLUS MPN (Master Promissory Note) at studentaid.gov. You will need to login to this site by clicking the blue "Log In" button.
7. If you are approved, the funds will be disbursed directly to the school and credited to your Business Office account.