Federal PLUS Loan

A PLUS Loan enables parents to borrow for each dependent student. Graduate and professional students are eligible to borrow for their education.

The borrower may request up to the total unmet need listed in your financial aid award. If the student will not be utilizing the Federal Work-Study award offered, that amount may be added to the total unmet need and increase total borrowing eligibility. If you request to borrow an amount that exceeds eligibility, Drexel will reduce the requested amount to comply with federal guidelines.

Eligibility

• Parents of dependent undergraduate students enrolled at least half-time (Parent PLUS Loan) or graduate/professional degree students enrolled at least half-time (Graduate PLUS Loan)
• Borrowers must be U.S. citizens or eligible noncitizens and have a satisfactory credit history (income-to-debt ratio is not considered)

Annual Loan Limit

• Up to the total unmet need listed in your financial aid award. If you are not using your Federal Work-Study award, that amount may be added to your total unmet need amount.

Cumulative Loan Limit

• There is no cumulative limit for PLUS loans

Interest Rate

• For the 2009–10 aid year, the interest rate is fixed at 8.5 percent
• Interest begins to accrue from the time the loan is disbursed

Additional Fees

• Origination fee of 3 percent is deducted from loan proceeds
• May also be charged a 1 percent default fee

Disbursements

• At the beginning of each term of enrollment, including co-op

Repayment

• The parent of a dependent undergraduate student (Parent PLUS Loan) or graduate/professional degree student (Graduate PLUS Loan) is responsible for repayment
• The length of repayment is between 10 and 25 years, depending on amount owed and type of repayment plan
• Begins within 60 days of the final loan disbursement
• The lender may allow deferment of payment until the student is finished school. Contact the lender to inquire about this option.

How to Apply

Federal PLUS loans are privately funded by banks and credit unions. The federal government sets the interest rate, fee limits, and minimum deferment options for these loans. However, many lenders offer borrower benefits beyond the minimum federal requirements so Drexel encourages you to explore your options before selecting a lender.

1. Select a Lender

You are free to select any lender you wish; however, Drexel has selected a number of lenders who offer the best benefits and services for our borrowers. Review our Recommended Lender Policy to learn more about the process we used to arrive at our selections.

• Visit SimpleTuition's lender comparison tool for Drexel borrowers to compare the borrower benefits offered by our recommended lenders.
• If you have previously borrowed a PLUS loan at Drexel, your prior lender, if available, will be automatically selected for your new loan unless you notify the SRC/Financial Aid Office in writing that you wish to choose a different lender.

2. Complete a Loan Application

• If you have chosen one of Drexel's recommended lenders, follow the application instructions on the SimpleTuition website or call your chosen lender directly to complete an application.
• If you would like to choose a lender not found on the SimpleTuition website, please complete the Drexel PLUS Loan request form and return it directly to Drexel's SRC/Financial Aid Office.

Master Promissory Note

A signed Master Promissory Note (MPN) is required to be submitted only once and remains valid for up to 10 years. The PLUS Loan is thus renewed upon completion of a phone application or request form for eligible returning students, and will be confirmed each year by a Statement of Disclosure sent to you from your lender.