The Federal Parent Loan for Undergraduate Students (PLUS) for Graduate/Professional Students (Graduate PLUS) is a low-interest federally insured loan to help pay college costs. The loan can be used to cover any educational expenses not covered by other forms of financial aid. Under the Federal Direct PLUS loan program students may borrow up to the full cost of the student’s education minus other financial aid received. To be eligible, borrowers are required to complete the Free Application for Federal Student Aid (FAFSA), the student must be a U.S. citizen or eligible non-citizen, must not be in default on any federal education loans or owe an overpayment on a federal education grant, the student must be enrolled and accepted for enrollment in a degree program on at least a half-time basis (3 credits) as an graduate student, must maintain Satisfactory Academic Progress (SAP), and the student borrower must not have an adverse credit history (a credit check will be performed). If the student borrower does not pass the credit check, the borrower may still receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the borrower fails to do so, and borrowers must have borrowed the maximum eligibility of the Federal Direct Unsubsidized Loans. A student must sign for the loan and complete all required documentation prior to the end of the student’s current academic year enrollment. A student must sign for the loan and complete all required documentation prior to the end of the student’s current academic year enrollment, (per federal guideline 34 CFR 668.164(g)(2)(ii)).  Any missing documents can be found on the student’s myMU Portal.

Borrowing Limits

The maximum a Graduate student may borrow per academic year for a Graduate PLUS is equal to the cost of attendance minus other financial aid (including Federal Direct Subsidized, Unsubsidized or a Private loan which are eligible). There is no aggregate maximum loan limit for the Graduate PLUS Loan.

Applying for a Graduate PLUS (FAFSA Required)

The Grad PLUS application opens each year on May 1 for the next academic year.

  1. New and Returning Students: Sign your financial aid offer and return it to the Financial Aid Office to confirm the amount of Graduate PLUS Loan for processing. Financial aid offers can now be signed via the myMU Portal.
  2. New and Returning Students: Complete the Direct Grad PLUS Loan application at The Department of Education will automatically notify Methodist University of the loan decision.
  3. New Students: Complete the Federal Direct Grad PLUS Master Promissory Note (MPN) and Loan Counseling (LC) at  The Department of Education will automatically notify Methodist University of the completed MPN and LC.
  4. New students NOTE: You will also need to complete an MPN and LC for the Direct Unsubsidized loan. You should request Direct Unsubsidized Loans up to your full eligibility ($20,500 per year) before borrowing Direct PLUS Loans.

Please note: Once the loan is processed/booked, the loan is assigned a Loan Servicer on behalf of the Department of Education. For a complete listing of Loan Servicers, please visit For additional information regarding interest rates, repayment etc. for Federal Direct Sub/Unsub, Parent/Graduate PLUS, please contact the Direct Loan Servicing Center at 800.848.0979.

Graduate Students Deferring the Federal Graduate PLUS: Students must contact the Department of Education Applicant Services at 800.557.7394 to ensure deferment status because student borrowers may need to submit an In-School Deferment Request form to the Direct Loan Servicing Center or repayment will begin immediately.

Direct Loan Interest Rate & Origination Fee

See the Federal Student Aid Web site for interest rates.

Loan Disbursement

The Graduate PLUS Loan will be issued in three equal amounts, one in the Fall, one in the Spring, and one in the summer of each academic year.

Loan Repayment

The repayment period for the Federal Direct PLUS Loan begins 60 days after the last disbursement of the loan is made to MU for the academic year.  Please visit the Department of Education’s website for additional information concerning loan repayment/repayment plans, deferment/forbearance options, or to use the loan repayment calculator to calculate monthly payments depending on which repayment plan you decide.

Loan Cancellation/Reinstatement

A student or parent borrower may cancel or reduce a loan anytime before a loan has disbursed to Methodist University. If the loan has already been disbursed and credited to the student’s account in the Business Office, the borrower may cancel a loan within 30 days from the date it disbursed and credited to the student’s account in Student Financial Services. A student may reinstate a Federal Direct subsidized (sub) and unsubsidized (unsub) loan at any time prior to the end of the student’s current academic year enrollment. The Federal Parent PLUS for Parents/Graduate students and Alternative Loans MAY NOT be reinstated once reduced or cancelled. Instead, the borrower must reapply online. To reinstate, reduce, or cancel a loan, the borrower must complete the Loan Revision Form.

Important Notice: Canceling any loan disbursement could result in a balance to be due on the student’s account in the Business Office which the student will be responsible for paying.

Repayment after the designated time period

Borrowers cannot cancel a loan disbursement if the designated time period described above has already passed. Instead, the borrower can repay the loan disbursement directly by contacting the loan holder which can be found by accessing The borrower will be responsible for any interest that may have accrued and/or any loan fees.

Loan Exit Counseling

Federal regulations require students who have borrowed a Federal Direct Loan and are graduating, leaving school, or dropping below half-time enrollment to complete an Exit Counseling. During the Exit Counseling, the student borrower will review rights and responsibilities as a student borrower, important information about repaying student loans, consolidation, repayment options, discharge and forgiveness as well as useful information to help manage student loans during repayment. Students must complete the Exit Counseling at


If a borrower disputes the terms of the loan in writing and the holder of the loan is unable to resolve the dispute, a borrower may seek the assistance of The Federal Student Aid Ombudsman of the Department of Education. The Federal Student Aid Ombudsman will review and attempt to informally resolve dispute and may be reached at (877) 557-2575 or

Loan Consolidation

A Direct Consolidation Loan Program is available that allows a borrower to consolidate (combine) one or more of the eligible federal education loans into one loan. For more details and information, go to