2
Borrowing Graduate PLUS Loans – Frequently Asked Questions
What is the difference between a Graduate PLUS loan and an alternative education loan?
The Direct Graduate PLUS loan is a credit-based loan program with the U.S. Department of Education for
graduate students enrolled at least half-time. You must submit a FAFSA and meet general financial aid
eligibility requirements. As a federal loan, the Direct Graduate PLUS loan carries a fixed interest rate,
deferment options, and various repayment plans. Alternative education loans are available via private
lenders, such as banks or credit unions. Sacred Heart University has a list of preferred alternative education
lenders available via elmselect.com. Depending on your credit, alternative education loans may have
competitive interest rates. You may need a creditworthy co-signer to borrow an alternative education loan.
What if I am not approved for the Graduate PLUS Loan?
If you are credit denied, you have the option of obtaining a creditworthy endorser (co-borrower).
Alternatively, you can appeal the credit decision with the U.S. Department of Education. There may be
additional steps including PLUS Credit Counseling to finalize your loan.
How much should I borrow?
Direct Graduate PLUS loans can be processed for up to your remaining cost of attendance. Refer to your
Financial Aid Disclosure in SHUAwards for this amount. Your cost of attendance includes estimates for direct
and indirect costs, such as living expenses, transportation, books, and supplies. You are not required to
borrow the entire amount of your cost of attendance; only borrow what you need. It is recommended that
you borrow conservatively and stick to a budget if you are using loan funds for living costs. Your Grad PLUS
loan may only be used to pay for education-related expenses. You can review your Student Account online to
determine your semester billed tuition and fee costs. Need help planning for the academic year? Contact us!
What are the interest rates and fees?
Direct PLUS Loans for graduate students have a fixed interest rate of 7.08%. The interest rate after 7/1/2020
is TBD. The origination fee is 4.236%. After 10/1/2020, the origination fee is TBD.
What actions need to be completed for loan processing?
You will need a credit approval via studentaid.gov, you must complete a Grad PLUS Loan MPN, and you must
complete Entrance Counseling. Additionally, you need to certify the amount you wish to borrow on the
Graduate PLUS Loan Certification form. Credit approvals are valid for 180 days. Review SHUAwards for any
outstanding documentation. You will receive periodic emails if financial aid forms are missing or incomplete.
How and when will my loan disburse?
Direct Loans are typically divided into equal disbursements for each semester. You may review SHUAwards for
the semester installment amounts of your loans. After the start of your classes (typically after the add/drop
period), your loans will post to your Student Account. To be eligible for federal loan disbursement, you must
initiate attendance, be enrolled at least half-time, and be meeting satisfactory academic progress. At least
half-time is defined 3 or more credits for graduate students. All outstanding financial aid requests related to
eligibility must be received as indicated in SHUAwards under My Documents. When your loans disburse, you
will receive a disbursement notification from the Office of Student Accounts, so it is important to stay
connected and keep your contact information current.
