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Federal Loans

Graduate PLUS Loans

Graduate students who choose to borrow additional loans beyond the maximum amounts available from the Direct Student Loan program can also borrow additional Graduate PLUS Loans. Your Maximum Annual Amount = your Cost of Attendance minus your other financial aid including other students loans. The Graduate PLUS loan terms and conditions mirrror the Parent PLUS Loans program. These requirements include a a credit check requirement, repayment beginning on the date of the last disbursement of the loan, and a fixed interest rate determined at the time you borrow the loan. 

Interest Rates

2014-15 rates will not be available until after July 2014 at: www.studentloans.gov

For 2013-14 loans, the interest rate was 6.41%. (These rates apply to first disbursed between 7/1/2013 & 6/30/2014.

Loan Origination Fee

In addition to the Interest costs, borrowers must also pay a federal Loan Origination Fee that is deducted from each loan disbursement. For loans first disbursed on or after Dec. 1, 2013, the fee is 4.288% of each loan disbursement.

Loan Limits

Your maximum annual loan amount is determined by the following formula:

Cost of Education Budget
-
Total Other Aid Received (including other student loans)
=
Maximum PLUS Loan amount.

You must choose your loan amount, and you do not have to borrow the maximum amount.

Eligibility Requirements

  • The PLUS Loan does not require financial need.
  • Before you can borrow any Graduate PLUS Loans, you must first borrow your maximum annual amount from the Direct Unsubsidized Loan program.

Application Requirements

  • Every year, complete a Free Application for Federal Student Aid (FAFSA)
  • Graduate PLUS borrowers must also complete Entrance Loan Counseling

Promissory Note

Borrowing from the PLUS Loan program requires the completion of an Electronic Master Promissory Note (e-MPN).  You can use the e-MPN to make one or more loans for one or more academic years while the student for whom you are borrowing is enrolled at Towson University. 

Disbursement

The Bursar’s Office will credit loan proceeds to the student’s account to pay tuition and other university charges.  Remaining funds go to you, or with your permission, directly to the student.

 

Repayment

The repayment period for principal and interest begins the day after the loan has been fully disbursed.  For example, a loan covering the fall and spring terms will enter repayment after the disbursement for the spring term.  The first payment becomes due within 60 days after the final loan disbursement of loan proceeds for an academic year.  You will have three repayment options:

  • The Standard Repayment Plan requires even monthly payments of at least $50 over a fixed period of up to 10 years.  This plan usually results in the lowest total interest paid because the repayment period is shorter than under the other plans.
  • The Extended Repayment Plan allows loan repayment over a period of 12 to 30 years, depending on the total amount borrowed.  You still pay a fixed amount each month (at least $50), but the monthly payments usually will be less than under the Standard Repayment Plan.  This may make the repayment more manageable; however, usually you will pay more interest because the repayment period is longer.
  • The Graduated Repayment Plan allows payments to start out low and increase every two years.  Your monthly payments must be at least half of what you would pay under Standard Repayment.  As in the Extended Repayment Plan, the repayment period will vary from 12 to 30 years, depending on the total amount borrowed.  Again, you may find it easier to manage the lower monthly payments; however, you will pay more interest because the repayment period will be longer.

NOTE:  You can prepay all or a portion of your loan at any time without penalty.

 

Additional Information on Borrowing

You can estimate your monthly payments with various repayment plans by using the repayment calculators available online from the U.S. Department of Education’s Direct Loan Web site.

For more information on the cost of borrowing or repayment, call the Federal Student Aid Information Center at 1-800-4FEDAID (1-800-433-3243).

Postponements of Payments

You may defer payments if you meet one of several conditions show in the U.S. Department of Education's Loan Deferment Summary table.

You may be eligible for additional deferments if, at the time you obtain a Direct Loan, you have an outstanding balance on a loan from the Federal Family Education Loan Program (FFELP), including any Federal Stafford Loan, Guaranteed Student Loan, Federal PLUS Loan, Federal Supplemental Loan for Students, or Federal Consolidation Loan borrowed before July 1, 1993.  The same deferments that apply to these FFELP’s can apply to your Direct Loan.  If you are unable to make payments on your PLUS Loan for reasons such as unexpected personal problems or poor health, you may request forbearance if you do not qualify for a deferment.  Forbearance allows you one of these options: postponement of payments, extension time between payments, or smaller payments than originally scheduled.  Interest continues to accrue during a period of forbearance.

You may also receive forbearance if you serve in a medical or dental internship or residency, or if you serve in a position under the national and Community Service Trust Act of 1993, or if you are obligated to make federal student loan payments equal to, or greater than, 20 percent of your total monthly gross income (there is a three-year limit for this forbearance).

Discharge

You can discharge a PLUS Loan under the specific circumstances.

Loan Consolidation

Consolidating your loans allows you to make only one monthly payment to cover your Federal Direct PLUS Loans and any federal student loans you may have for your own education. 

Financial Aid Office
Enrollment Services, Room 339
Hours: Monday - Thursday, 8 a.m. - 5 p.m.; Friday, 8 a.m. - 4:30 p.m. (Reception Desk)
            Monday - Thursday, 8:30 a.m. - 5 p.m.; Friday, 8:30 a.m. - 4:30 p.m. (Financial Aid Call Center)

Phone: 410-704-4236
Fax: 410-704-2584
E-mail: finaid@towson.edu


 

 

 

 


 

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