Student loans

Graduate PLUS loans: What are they and how to apply

July 14, 2025 – 6 mins

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Issued by the U.S. Department of Education, Graduate PLUS Loans are designed to help graduate and professional students pay for school. The One Big Beautiful Bill Act, signed into law on July 4, 2025, eliminates the Grad PLUS loan program, meaning this option will not be available for future borrowing after July 1, 2026. However, this elimination primarily impacts those seeking new Grad PLUS loans after that date. It provides an exception (of up to three academic years) for a student who is already enrolled in a program of study and received a loan for the program. Our PLUS loan guide can help you navigate potential federal loan changes.^{footnote 1} Here’s how to determine if you qualify and how to apply.

Understanding federal PLUS Loans for graduate students

Graduate PLUS Loans are federal student loans available to students attending graduate school and professional school until July 1, 2026.

Grad students will have a limit of $20,500 per year ($100,000 lifetime) and professional students will have a limit of $50,000 per year ($200,000 lifetime). Private student loans, offered by banks, could be another option worth considering, especially if you have good credit.

For loans first disbursed on or after July 1, 2025, and before July 1, 2026, the Grad PLUS loan interest rate is 8.94%.^{footnote 2}

The Department of Education also charges an origination fee of 4.228% for loans disbursed on or after October 1, 2020.^{footnote 3} It’s deducted from the total loan amount before the money is sent to the school.

Differences between a Grad PLUS loan and other federal student loans

There are several differences you should know about:

A Grad PLUS Loan is credit-based. If your credit isn’t strong, you may need an endorser (similar to a cosigner) to help you qualify.
Unlike other federal direct student loans, there’s no borrowing limit—it’s up to your grad school’s cost of attendance.
The interest rate for a Grad PLUS Loan is higher than for a direct unsubsidized loan.

Tip: Always try federal direct loans first, then use Grad PLUS Loans (or a private loan) to cover the rest.

Requirements for Graduate PLUS Loans

Your next question may be “am I eligible for a Graduate PLUS Loan?”

Here are the requirements:

You’re a graduate or professional student enrolled at least part-time at an eligible school in a program leading to a graduate or professional degree or certificate.
You don’t have an “adverse credit history.” This means you have no student loan defaults, no long-term delinquencies, and no bankruptcies on your credit report.
- If you do have a challenging credit history, consider applying with a cosigner—but remember, the endorser is legally responsible for repaying your loan if you’re not able to do it.^{footnote 6}

You meet the general eligibility requirements for federal student aid, including being a U.S. citizen or eligible non-citizen, having a Social Security number, and making satisfactory academic progress. Keep in mind that the Grad PLUS Loan program will be terminated on July 1, 2026 and impacts those seeking new grad PLUS loans after that date.

How to apply for a Grad PLUS Loan

If you meet those requirements, the next step is to complete the Free Application for Federal Student Aid (FAFSA^®). Submitting the FAFSA^® isn’t just for high school seniors and undergraduates—grad students should file too in order to qualify for various forms of aid, including scholarships and grants, work-study, and federal student loans.

Once you’ve filed the FAFSA^®, you can start a Grad PLUS Loan application. You’ll need to provide your verified FSA ID (which is a username and password created to file the FAFSA^®), your school name, your permanent mailing address, your U.S. address (if your permanent address is outside of the U.S.), your telephone number and email address, and if applicable, your employer's information.

If you’re eligible for a Grad PLUS Loan, you’ll need to agree to its terms by signing a Master Promissory Note. You may also need to complete entrance counseling.

What does a Graduate PLUS Loan cover?

The Graduate PLUS Loan can cover the full cost of attendance for your graduate program, with the exception of other financial aid received. If you still have any questions about the PLUS loan changes, our PLUS loan guide can help.

The cost of attendance may include:

Tuition and fees
Room and board
Books and supplies
Technology and equipment
Transportation
Miscellaneous and personal expenses

Key benefits of the Grad PLUS Loan

There are benefits to a Graduate PLUS Loan, similar to benefits offered for other federal student loans.

Grad PLUS loans come with a fixed interest rate that won’t go up (or down) during the life of your loan.
Loan payments can be postponed while you’re in school, as long as you’re enrolled at least part-time at an accredited program, and for an additional six months after you’ve left school or dropped below part-time status.
There are multiple repayment plans available, including income-driven repayment plans, and the interest you pay on your loan can be tax deductible.

More options to pay for your graduate degree

After you’ve maximized money you don’t have to pay back, like scholarships, grants, and federal aid, you may still need additional funds.

That’s when you should consider a private student loan. Unlike grad PLUS loans, private student loans don’t have an origination fee. Interest rates could be competitive and there may also be expanded repayment terms.

Still got questions? Our PLUS loan guide can help.

footnote Sallie Mae does not provide, and these materials are not meant to convey, financial, tax, or legal advice. Consult your own financial advisor, tax advisor, or attorney about your specific circumstances.

footnote External links and third-party references are provided for informational purposes only. Sallie Mae cannot guarantee the accuracy of the information provided by any third parties and assumes no responsibility for any errors or omissions contained therein. Any copyrights, trademarks, and/or service marks used in these materials are the property of their respective owners.

footnote Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.

footnote FAFSA® is a registered service mark of U.S. Department of Education, Federal Student Aid.

footnote 1. https://www.congress.gov/bill/119th-congress/house-bill/1

footnote 2. https://studentaid.gov/understand-aid/types/loans/plus/grad

footnote 3. https://studentaid.gov/understand-aid/types/loans/plus/grad#other-than-interest-is-there-a-charge-for-this-loan

footnote 4. Although we do not charge you a penalty or fee if you prepay your loan, any prepayment will be applied as provided in your promissory note — first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.

footnote 5. Sallie Mae loans cover enrollment periods of up to 12 months. Students must apply for a new loan each school year. This approval percentage is based on students who were approved for a Sallie Mae undergraduate loan with a cosigner in the 2021/22 school year and were approved for another Sallie Mae undergraduate loan when they returned with the same or new cosigner in 2022/23. It does not include the denied applications of students who were ultimately approved in 2022/23.

footnote 6. https://studentaid.gov/endorser-addendum/