Grad Plus Loans

What is a graduate student loan?

If you are a graduate student at ASU and have borrowed a Grad PLUS Loan prior to July 1, 2026, you can continue to borrow for three academic years or until you complete your program, whichever is less. If you withdraw from ASU you will be ineligible for future Grad PLUS Loans even if you re-enroll at ASU. Here are some things to know about the Grad PLUS Loan:

The Grad PLUS Loan program was eliminated in the One Big Beautiful Bill. The elimination goes into effect July 1, 2026.

For students that have already borrowed Grad PLUS Loans under the legacy provisions described above:

The interest rate on Grad PLUS Loans is fixed.
The current interest rate for 2025–2026 is 8.94%.
The interest rate is based on the 10-year treasury rate plus a fixed margin of 4.342%.
There is a 4.228% loan origination fee on all Grad PLUS Loans. This fee will be deducted from each disbursement.

How to apply for a Grad PLUS loan?

To start the process of applying for a Grad PLUS Loan, you must make sure you are part of the legacy population that has already borrowed a Grad PLUS Loan at ASU
You must complete a Free Application for Federal Student Aid.
After ASU receives your FAFSA and you have completed all the items under your Priority Tasks on My ASU, you may be offered a Grad PLUS Loan.
If you are graduating in the fall term and your Grad PLUS Loan is not automatically adjusted (i.e., spring disbursement canceled), you may email f[email protected] with the subject line: “Adjust Loan(s) due to Fall Graduation” to request your Federal Direct Loans be adjusted accordingly. Please note that you may not be eligible for the full amount in the fall term.

What are the Grad PLUS Loan limits?

The amount of the Grad PLUS Loan you may borrow is determined by your estimated cost of attendance after subtracting any other financial aid you receive.
If you are a graduate or professional student, you can borrow up to $20,500 each year in Direct Unsubsidized Loans. Your Graduate PLUS Loan under the legacy provision can also be used for the remainder of your college costs not covered by other financial aid.
ASU awards the maximum amount that you may borrow; however, you can choose to accept a lower amount, or none at all. Apply only for what you feel is necessary based on your financial situation.

How to receive a Grad PLUS loan

When are Grad PLUS Loans disbursed?

All Grad PLUS Loan funds will be disbursed to you through Electronic Fund Transfer and will be applied toward your outstanding charges no earlier than seven days prior to the start of each semester.

What happens to the leftover loan money?

Any remaining funds will be disbursed to you via paper check or direct deposit to your personal bank account. You can set this up through My ASU.

How to pay back Grad PLUS Loans

A Grad PLUS Loan is like any other loan. You must repay it even if your financial situation changes or you don’t complete your degree. Repayment begins 60 days after the loan is fully disbursed.

Federal student loan repayment plans

Any graduate plus loans disbursed after July 1, 2026, will have two repayment options:

Standard Repayment Plan — four fixed terms of 10, 15, 20 or 25 years based on the amount borrowed.

Repayment Assistance Plan — Monthly payment is 1–10% of income based on AGI with a minimum payment of $50.

All outstanding loans must be paid under the same repayment plan. https://studentaid.gov/understand-aid/types/loans/plus/grad

What is a loan servicer?

A loan servicer is the company that handles billing and customer service for your loan. After your first loan disbursement, the U.S. Department of Education assigns your loan to a servicer, who will contact you with information about repayment plans.

Grad PLUS loan FAQs

What are Grad PLUS loan eligibility and limitations?

Generally, you must have a good credit history to qualify. If your credit report indicates you’re 90 days or more delinquent on any debt; are in default; or have a bankruptcy, a foreclosure, a repossession, a tax lien, wage garnishment or a write-off of any Title IV federal financial aid during the last five years, you will not be eligible to borrow a Grad PLUS Loan unless you can obtain a creditworthy endorser who agrees to repay the loan if you don’t.

How do I accept or decline my Grad PLUS Loan?

Log in to My ASU with your ASURITE User ID, and go to the Financial Aid and Scholarships box.
View your offered Grad PLUS Loan amounts.
Enter the amount that you would like to accept, but not more than the amount offered by ASU, and click the Continue button.
Processing of your loan will initiate a credit check through the U.S. Department of Education.
You must also complete a Federal Direct PLUS MPN if this is your first time borrowing a Federal Direct Graduate PLUS Loan or if a financial endorser was required on a previous Federal Direct Graduate PLUS Loan.

For all questions regarding your credit check, including credit criteria, please call the Federal Student Aid office at 800-433-3243.

Can I defer payment on a Grad PLUS Loan?

There are some situations where payment can be deferred. It’s important to remember that if you are able to defer your Grad PLUS Loan, interest will continue to accrue during that time and any unpaid interest will be added to the principal balance of the loan. For more information on deferment, contact your loan servicer.

What if the PLUS Loan is denied due to credit?

Federal PLUS Loans are subject to credit approval and can be denied based on certain criteria. You have two options available to consider if you are denied a Grad PLUS Loan because of your credit.

If your Grad PLUS Loan is denied because of your credit, you may be eligible to receive a Grad PLUS Loan by securing a creditworthy endorser who agrees to repay the loan if you do not, or you may appeal the decision by documenting extenuating circumstances. Contact the U.S. Department of Education PLUS Credit Appeal line at 800-433-3243 or online at studentaid.gov.

If you’ve been denied a Grad PLUS Loan and plan to secure a creditworthy endorser, you will be required to complete PLUS Loan Credit Counseling. To complete the PLUS Loan Credit Counseling and ensure that your endorsed PLUS Loan is sent to ASU, go to PLUS Loan Credit Counseling.

Explore other types of loans