To qualify you must be one of the following:
- A U.S. citizen
- A U.S. national
- A U.S. permanent resident
- A citizen of the Freely Associated States: the Federated State of Micronesia and the Republics of Palau and the Marshall Islands
- An eligible noncitizen
Students must be enrolled at least half time to be considered for this loan. The Department of Education's Direct Loan Servicing Center is the holder of this loan when a student goes into repayment.
Interest, Repayment, and Loan Origination Fee
While the student is attending school, the interest accumulates on this loan. The student must either pay the interest on this loan quarterly to the Direct Loan Servicing Center or you let the interest accumulate and capitalize. Capitalized interest makes the loan payback more expensive over time.
No payment on the principal balance of the loan is necessary so long as the student remains at least half-time status (five or more hours for graduate students).
The interest rate is fixed at 6.31% for Direct PLUS Loans first disbursed on or after July 1, 2016, and before July 1, 2017. Yearly loan amounts the student may borrow depend on the student's program and credit hours enrolled per semester.
There is a 4.6% loan origination fee associated with this loan. The fee will be proportionally deducted from each loan disbursement.