Graduate PLUS loans: What are they and how to apply
July 14, 2025 – 6 mins
Explore which loan is right for you
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.
Need money for college?
Consider a Sallie Mae® private student loan
- Available for online or on-campus study
- Competitive fixed and variable rates
- No origination fee or prepayment penaltyfootnote 4
- 95% of undergraduate students who’ve been approved with a cosigner were approved again when they returned with a cosigner the following yearfootnote 5

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.