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Federal Direct Graduate PLUS Loan

Graduate students are eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance in the Direct Loan Program.


The student:

  1. Must be fully admitted as a degree-seeking student at ISU.
  2. Must be enrolled at least half-time when the loan is expected to be disbursed.
  3. Must maintain Satisfactory Academic Progress standards.
  4. Must be a U.S. Citizen or eligible non-citizen (as defined by federal financial aid regulations).
  5. Must not be in default on an educational loan or owe an overpayment on a federal education grant, or other federal debt, or has made satisfactory arrangements to repay that debt.
  6. Must be a creditworthy graduate student.
  7. Must apply for annual loan maximum eligibility under the Federal Unsubsidized Stafford Loan Program before applying for a Federal Direct Graduate PLUS loan.

How To Apply

  1. File the Free Application for Federal Student Aid (FAFSA).
  2. Complete the Graduate Loan Request Form. This form must be completed and signed. Please mail or fax this form back to the Office of Student Financial Aid.
  3. The loan will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of the data system.
  4. First-time borrowers must complete the Master Promissory Note and Entrance Counseling for Graduate PLUS Loans.
  5. The student will receive notification directly from the U.S Department of Education on approval/denial.


A student may borrow the cost of attendance minus any financial aid offered for the school year.

Interest Rates and Fees

The interest rate is fixed at 7.21%. For loans in which the first disbursement is on or after October 1, 2014, the origination fee is 4.292%. After October 1, 2015, the origination fee is 4.272%. Payment may be deferred if the student is enrolled half-time. Contact Direct Loans to request deferment.

Disbursement of Funds

  • Loan funds are applied to student accounts approximately ten days before the start of the semester.
  • If the borrower applies for a full academic year loan, half of the amount applied for is disbursed at the start of the fall semester and the other half at the start of the spring semester.
  • Funds will first cover direct educational expenses on the student's account.
  • Any excess funds are refunded to the student via ACH direct deposit or sent to the student's permanent address.
  • Loan amounts will be prorated for undergraduate students graduating in December.
  • Borrowers have the right to cancel all or a portion of the loan with no penalty by submitting a loan cancelation form within 30 days of disbursement. Visit http://indstate.edu/finaid/lar-form.htm for the form.


To find out more about repayment options before receiving a Direct Loan, borrowers may contact the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243).

In addition, visit repayment.


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