Graduate PLUS Loans
The Federal Graduate PLUS Loan program allows graduate and professional students to borrow at a lower fixed interest rate after the unsubsidized loan eligibility has been exhausted. The Federal Direct Graduate PLUS Loan can be used to pay for the total cost of attendance minus any financial aid you’ve been awarded. The Graduate PLUS Loan is largely dependent on the borrower’s credit rating and history. Graduate students must complete a Grad PLUS Loan application at studentaid.gov.
Parent PLUS Loan
Biological or adoptive parents of a dependent undergraduate student may apply for a Federal Direct PLUS loan to help meet the student’s cost of attendance not covered by other financial aid. The Free Application for Federal Student Aid (FAFSA) is required and parents must complete a parent PLUS Loan application at studentaid.gov.
Credit History
Parents are also required to pass a credit check when they are applying for the PLUS loan. If a parent’s application for a PLUS loan is denied based on the borrower’s credit history, the student may become eligible for an additional unsubsidized student loan. Freshmen and sophomore students can borrow up to $4,000 in a Federal Direct loan, while juniors and seniors can borrow up to $5,000.
PLUS Loan Entrance Counseling
- In January 2015, the Department of Education implemented changes to the adverse credit history provisions for the determination of an applicant’s eligibility for a Direct PLUS Loan.
- Parent and Graduate PLUS loan applicants who qualify for a Direct PLUS Loan by obtaining an endorser or due to a credit appeal decision, are now required to complete PLUS Loan Counseling. Applicants who are subject to the new counseling requirement must complete the counseling at studentaid.gov.
Interest Rates**
2022-23 interest rates on all Federal Direct Loans are fixed.
- Federal Direct Parent PLUS: 7.54%
- Federal Direct Graduate PLUS: 7.54%
**Interest rates for loans disbursed on or after July 1, 2022, and before July 1, 2023.
Origination Fees
An origination fee is charged by the Federal Government for Direct Loans. This fee is a percentage of the total loan amount and is deducted from each loan disbursement. You are responsible for repaying the entire amount you borrow.
| Loan Type | First Disbursement Date | Loan Fee |
| Federal Direct PLUS Loan | On or after 10/1/20 and before 10/1/23 | 4.228% |
| On or after 10/1/19 and before 10/1/20 | 4.236% |
PLUS Loan Application Process
The University of Lynchburg has recently streamlined the Parent and Graduate PLUS Loan application process and it is now completed on studentaid.gov.
Parents and Students first must fill out and submit the FAFSA.
Log into studentaid.gov. PLUS Parent Loan borrowers must sign in using their FSA ID and not the student’s.
- Select Loans and Grants.
- Select PLUS Loans: Grad PLUS and Parent PLUS.
- Select Learn More next to I am a Parent of a Student.
- Begin the Parent PLUS Loan Application.
- Confirm you have not placed a freeze on your credit report.
- Select an award year (2023-2024 for students starting in the Fall of 2023).
- Confirm the student’s name and information.
- Select your deferment and refund preferences.
- Select the school you want to notify (Note: Select the University of Lynchburg, not the Virginia University of Lynchburg).
- Indicate the specific amount you wish to borrow.
- Select the Loan Period for the PLUS Loan (To split the loan between Fall and Spring, select June of 2023 to May of 2024).
- Complete all sections of the Borrower Information.
- The Department of Education will evaluate your credit and approve or deny the application. You will receive an immediate response.
- If your credit is approved, you will be given instructions for completing a PLUS Loan Master Promissory Note (MPN) on studentaid.gov, if you have not already completed one in the prior year.
- The Federal Direct Loan program will forward the approved PLUS Loan application to the Solutions Center to verify enrollment and eligibility.
- Please be aware it may take up to 48 hours for the University of Lynchburg to receive your submitted application.
- The federal government will send the “Notice of Loan Guarantee and Disclosure Statement” to you the borrower.
- The federal government will send loan disbursements to the University of Lynchburg following the disclosure statement schedule.
If the PLUS Loan is denied for credit reasons, you may choose to obtain an endorser or provide documentation to the Department of Education to appeal the credit decision. Contact the Department of Education at 1.800.433.3243 to start the appeal or get detailed information regarding the endorser addendum.
