The interest rate for Direct PLUS Loans first disbursed on or after July 1, 2024, and before July 1, 2025, is 9.08%.
Understanding Direct PLUS Loans
Direct PLUS Loans are federal student loans available to graduate or professional students and parents of dependent undergraduate students. These loans help cover education expenses up to the cost of attendance, minus any other financial aid received.
The interest rates for federal student loans are fixed for the life of the loan and are set annually, effective for loans first disbursed during a specific period. The 9.08% rate applies to PLUS loans disbursed during the 2024-2025 award year.
Direct PLUS Loan Interest Rate Summary
Loan Type | Borrower Type | Fixed Interest Rate (for loans disbursed July 1, 2024 – June 30, 2025) |
---|---|---|
Direct PLUS Loans | Parents and Graduate or Professional Students | 9.08% |
Key Aspects of Direct PLUS Loans
- Eligibility:
- Parent PLUS Loans: Available to parents (biological, adoptive, or in some cases, stepparents) of dependent undergraduate students enrolled at least half-time. Parents must not have an adverse credit history.
- Grad PLUS Loans: Available to graduate or professional students enrolled at least half-time. Students must not have an adverse credit history.
- Loan Limits: PLUS loans can be borrowed up to the student's cost of attendance, as determined by the school, minus any other financial aid received.
- Disbursement: Funds are generally sent directly to the school and then applied to the student's account to cover tuition, fees, room, and board. Any remaining funds are disbursed to the borrower.
- Repayment: Repayment for PLUS loans typically begins shortly after the loan is fully disbursed. However, options such as deferment while the student is in school (for at least half-time enrollment) are often available. Interest accrues during deferment periods.
For more detailed information on federal student loan interest rates and fees, you can visit studentaid.gov.