Federal PLUS Loans

Federal PLUS Loans

There are two types of PLUS Loans offered by the Department of Education:

  • Federal Parent PLUS Loan: for eligible parents of dependent undergraduate FAFSA filers
  • Federal Graduate PLUS Loan: for eligible graduate FAFSA filers

Federal Parent PLUS Loan

Eligible Parent Borrowers

A dependent undergraduate student’s biological parent, adoptive parent, or step-parent may borrow a Federal Parent PLUS Loan to finance all or any portion of their student’s education. Approved applicants may borrow up to the cost of attendance (tuition, fees, room, board, books, travel expenses, and miscellaneous expenses) minus all financial aid that their student is receiving. In order to qualify for a Parent PLUS Loan, their dependent student must file a FAFSA for the academic year for which the parent wishes to borrow, and their student must be enrolled in school on at least a half-time basis. A simplified credit check is required upon submission of a Parent PLUS Loan application. 

Interest Rate & Fees

The interest rate assigned is fixed, and interest accrual will begin upon disbursement; which takes place after Moravian’s Add/Drop period each semester. The Parent PLUS Loan has an up-front fee, referred to as an “origination fee.”

For 2024-2025: The Federal Parent PLUS Loan has a fixed interest rate of 9.08% for loans disbursed July 1, 2024 to June 30, 2025. The origination fee for Parent PLUS Loans  disbursed on or after October 1, 2024 and before October 1, 2025 is 4.228%.

For 2023-2024: The Federal Parent PLUS Loan has a fixed interest rate of 8.05% for loans disbursed July 1, 2023 to June 30, 2024. The origination fee for Parent PLUS Loans disbursed on or after October 1, 2023 and before October 1, 2024 is 4.228%.

Origination Fee Calculator

This calculator will assist you in determining the amount of the origination fee and how much to request if you would like the origination fee included in the loan. Moravian encourages parent and graduate PLUS loan borrowers to request the full annual amount they intend to borrow, rather than borrowing by semester. 

Use calculator

Repayment 

Parent PLUS Loan repayment can begin immediately or be deferred while the dependent student is enrolled in school on at least a half-time basis. During the application, parents are prompted to choose which option they prefer.  

By choosing the in-school deferment option, it means that you are not required to make payments on your Parent PLUS Loan until after your student is no longer enrolled in school on at least a half-time basis. Repayment begins once the 6-month grace period ends; which begins after your student ceases enrollment on at least a half-time basis. The standard repayment plan Parent PLUS Loans borrowers are placed on spans over 10 years; however there are a variety of other flexible repayment plan options available for federal student loan borrowers to explore. 

Learn about repayment plan options>

Estimate your student loan repayment options with the FSA’s Loan Simulator>

Application Process

Eligible parents can complete the Parent PLUS Loan application and the simplified credit assessment at studentaid.gov. 

To get started with your Parent PLUS Loan application: 

  1. Visit studentaid.gov
  2. Sign in with your parent FSA ID 
  3. Hover over "Loans and Grants”
  4. Select PLUS Loans: Grad PLUS and Parent PLUS
  5. Click the option to “Start” next to “I am a Parent of a Student”

Upon submission of the PLUS Loan application and completion of the simplified credit check, you will know right away whether your loan application has been approved or denied. The Office of Financial Aid Services at Moravian will be notified within 24 hours and process the application results thereafter.

If Approved:

If the application was approved, the loan will be added to yourstudent's Financial Aid Offer within 7-10 days.Approved parent borrowers must complete the Master Promissory Note (MPN) for Parent PLUS Loan borrowers to finalize ability to borrow the loan.

To complete your Parent PLUS Loan MPN:

  • Visit studentaid.gov
  • Sign in with your (parent) FSA ID 
  • Hover over "Loans and Grants”
  • Select Master Promissory Note (MPN)
  • Click the option to “Start” next to “I’m a Parent of an Undergraduate Student”

If Denied:

If the application was denied, there are a few options!

Option 1: The student becomes eligible for an additional amount of Federal Direct Unsubsidized Loan. The amount varies from $4,000 to $5,000, depending on their grade level. 

Option 2: The applicant may appeal the loan decision. This can be done by contacting studentaid.gov at 1-800-557-7394.

Option 3: The applicant may consider using an endorser to sign off on the loan to improve the credit decision to an approved loan.

  1. The endorser will need to create an FSA ID to log on to studentaid.gov and endorse the parent loan application. The endorser will need to know the exact loan amount needed to sign off on, and therefore, we encourage you to contact the Office of Financial Aid Services to discuss the amount needed to cover the balance due for the year.
  2. If this option is used, the parent borrower will also need to complete PLUS Loan Credit Counseling on studentaid.gov in order for the school to process the loan.

Federal Graduate PLUS Loan

Eligible Graduate Borrowers

A graduate or professional student may borrow a Federal Direct Graduate PLUS Loan to finance all or any portion of their education. Approved applicants may borrow up to the cost of attendance (tuition, fees, room, board, books, travel expenses, and miscellaneous expenses) minus all financial aid that they are receiving. In order to qualify for a Graduate PLUS Loan, your FAFSA must be submitted for the academic year in which you wish to borrow, and you must be enrolled in school on at least a half-time basis. A simplified credit check is required upon submission of a Graduate PLUS Loan application.

Interest Rate & Fees

The interest rate assigned is fixed, and interest accrual will begin upon disbursement; which takes place after Moravian’s Add/Drop period each semester. The Graduate PLUS Loan has an up-front fee, referred to as an “origination fee.”

For 2022-2023: The Federal Graduate PLUS Loan has a fixed interest rate of 7.54% for loans disbursed from July 1, 2022, to June 30, 2023. The origination fee for Graduate PLUS Loans loans disbursed on or after October 1, 2022, and before October 1, 2023, is 4.228%.

For 2023-2024: The Federal Graduate PLUS Loan has a fixed interest rate of 8.05% for loans disbursed from July 1, 2023, to June 30, 2024. The origination fee for Graduate PLUS Loans disbursed on or after October 1, 2023, and before October 1, 2024, is 4.228%.

Repayment 

Graduate PLUS Loan repayment can begin immediately or be deferred while you are enrolled in school on at least a half-time basis. During the application, you will be prompted to choose which option you prefer.  

By choosing the in-school deferment option, it means that you are not required to make payments on your Graduate PLUS Loan until after you are no longer enrolled in school on at least a half-time basis. Repayment begins once the 6-month grace period ends; which begins after you cease enrollment on at least a half-time basis. The standard repayment plan Graduate PLUS Loans borrowers are placed on spans over 10 years; however, there are a variety of other flexible repayment plan options available for federal student loan borrowers to explore. 

Learn about repayment plan options>

Estimate your student loan repayment options with the FSA’s Loan Simulator>

Application Process

Eligible graduate students can complete the Graduate PLUS Loan application and simplified credit assessment check at studentaid.gov. 

To get started with your Graduate PLUS Loan application: 

  1. Visit studentaid.gov
  2. Sign in with your student FSA ID 
  3. Hover over "Loans and Grants”
  4. Select PLUS Loans: Grad PLUS and Parent PLUS
  5. Click the option to “Start” next to “I’m a Graduate/Professional Student”

Upon submission of the PLUS Loan application and completion of the simplified credit check, you will know right away whether your loan application has been approved or denied. The Office of Financial Aid Services at Moravian will be notified within 24 hours and process the application results thereafter.

If Approved:

If the application was approved, the loan will be added to your Financial Aid Offer within 7-10 days. Approved borrowers must complete the Master Promissory Note (MPN) for Graduate PLUS Loan borrowers to finalize their ability to borrow the loan.

 To complete your Graduate PLUS Loan MPN:

  • Visit studentaid.gov
  • Sign in with your (parent) FSA ID 
  • Hover over "Loans and Grants”
  • Select Master Promissory Note (MPN)
  • Click the option to “Start” next to “I’m a Graduate/ Professional Student”

If Denied:

If the application was denied, there are a few options!

Option 1: The applicant may appeal the loan decision. This can be done by contacting studentaid.gov at 1-800-557-7394.

Option 2: The applicant may consider using an endorser to sign off on the loan to improve the credit decision to an approved loan.

  1. The endorser will need to create an FSA ID to log on to studentaid.gov and endorse the student loan application. The endorser will need to know the exact loan amount needed to sign off on, and therefore, we encourage you to contact the Office of Financial Aid Services to discuss the amount needed to cover the balance due for the year.
  2. If this option is used, the borrower will also need to complete PLUS Loan Credit Counseling on studentaid.gov in order for the school to process the loan