Federal Graduate Student PLUS Loans

Eligible graduate students who have borrowed their maximum Federal Unsubsidized Loans can apply for additional Grad PLUS Loans.

Grad PLUS Loan Elimination

Starting with the Fall 2026 term, the federal Graduate PLUS Loan program has been eliminated for new graduate students and any continuing graduate students who don’t meet the federal legacy rules below.

Under the new rules, eligible graduate students can still borrow up to $20,500 per year in Unsubsidized Direct Student Loans, but can no longer borrow additional funds from the Graduate PLUS Loan program. Graduate students who want to borrow more than $20,500 per year, can apply for additional private loans.

The Parent PLUS Loan program that parents can use to borrow loans for dependent undergraduate students has NOT been eliminated.

Grad PLUS Loan Legacy Rules

Based on draft federal regulations, if you previously borrowed a graduate Federal Unsubsidized Direct Student Loan or Graduate PLUS Loan at TU, that was or is disbursed to TU before July 1, 2026, and you are still pursuing the same academic program, and you haven’t withdrawn from it, you can continue to borrow additional Graduate PLUS loans for the same graduate academic program for up to three additional academic years or until you  complete that academic program, whichever comes first.

Summer 2026 Admit Legacy Rules

Based on the draft new federal regulations, new graduate students who start at TU for the summer 2026 term can qualify for the legacy rules if they meet all these conditions:

  1. Meet all the eligibility requirements for federal aid.
  2. Submit a 2025-2026 FAFSA by early June.
  3. Enroll at least half-time in summer 2026 TU classes that are required for your new TU graduate program.
  4. By early June, complete all the loan application steps to borrow a summer 2026 federal Direct Unsubsidized Student Loan so that loan gets disbursed to TU before July 1, 2026.

Note: To qualify for the legacy rules, you must borrow a Federal Unsubsidized Direct Loan or a Grad PLUS Loan by the deadline, and Grad PLUS rules require students to borrow their maximum Unsubsidized Direct Loan before they can borrow a Grad PLUS loans. Most graduate students won't be able to borrow any Grad PLUS loans for summer because the maximum annual Unsubsidized Loan limit is $20,500 and total summer aid/loans can't exceed your summer Cost of Attendance budget.

Eligibility Requirements

Before graduate students can borrow any Grad PLUS loan funds, first you must borrow your maximum Unsubsidized Direct Student Loan. The annual limit for that loan is $20,500.

*Half-time is 6 units for master's and graduate certificate students and 3 units for doctoral students.

Interest Rate, Fees & Repayment

For PLUS Loans first disbursed from 7/1/25 to 6/30/26, the interest rate is 8.94%. For loans first disbursed after 6/30/26, new interest rates will be released in June. 

PLUS Loan Disbursement Fees will be deducted from each loan disbursement. For loans first disbursed between October 1, 2020 and October 1, 2026, the fee is 4.228% of the disbursed amount.

The repayment period for principal and interest begins the day after the loan has been fully disbursed, and the first payment is due 60 days later. Example: A Fall-Spring PLUS Loan will enter repayment after the spring loan is disbursed.

You can choose to defer repayment until you graduate, but that option increases your borrowing costs.

Use the Loan Simulator to estimate your monthly payments.

High Debt Warning

The Federal PLUS Loan program usually offers lower borrowing costs than private loans and includes several additional benefits, but because the process only checks for a bad credit history and doesn't evaluate your ability to afford your loan payments based on your debt to income ratio, it is easy to get approved for more than you can afford to repay. Please carefully evaluate how much you can afford to repay.

Grad PLUS Loan Limits

Your Grad PLUS Loan and total other aid can't exceed your Cost of Attendance budget.

Cost of Attendance - Total Other Aid = Grad PLUS Limit.

You can use PLUS loan funds to help pay your TU charges and your other living and personal expenses. To calculate how much you need to borrow for this academic year, compare your total other aid to the estimated Cost of Attendance on your award notification.

If you want to borrow extra to compensate for the 4.228% PLUS Disbursement Fees, use this formula:

Target Loan Disbursement Amount divided by 0.95712 = Adjusted Loan Request Amount.

PLUS Loan Application Instructions

Every year, before you borrow a Grad PLUS Loan, you must submit a new FAFSA, wait for your Award Notification, and accept your maximum Unsubsidized Direct Student Loan. 

The PLUS Application

The federal government won't open the Fall 2026 - Spring 2027 PLUS application until sometime in April.

To apply for 2025- 2026 PLUS loans, use one of these loan periods:

  • Fall 25-Spring 26:  8/2025-5/2026
  • Spring 26:  1/2026-5/2026
  • Summer 26: 5/2026-8/2026

2025-2026 Instructions

  1. Go to studentaid.gov/plus-app.
  2. Login with your Federal Student Aid ID.
  3. Choose Request a Direct PLUS Loan and complete the application.
  4. A few days after you submit the application, you should receive an email reply with your credit check results.

PLUS MPN - (New Borrowers)

The Master Promissory Note (MPN) is your contract to repay the loan.

  • New PLUS borrowers at TU must also visit studentaid.gov/mpn/ to complete a PLUS MPN for Graduate/Professional Students.
  • Repeat borrowers should confirm that their MPN is already on file by visiting studentaid.gov/fsa-id/sign-in then My Loan Documents → Completed MPNs.

Application Tips and Common Errors

  • Enter your full legal name.
  • The Loan Period can’t exceed one academic year.
  • You must reapply annually.

PLUS Disbursements

Each semester, your PLUS Loan funds will be disbursed to your TU student account to help pay your university charges. Any remaining funds will be disbursed to you as a financial aid rebate.

Four to six weeks after you complete these steps and have registered for classes, your PLUS funds will appear on your TU bill as Anticipated Aid.

To view the TU eBill, login to your Towson Online Services Student Dashboard. Then, from the main Navigation Menu, choose Financials, and What I Owe.

PLUS Loan Denial Options

If the federal loan processor denied your PLUS loan because of an adverse credit history, you can appeal the denial or obtain an endorser.

Appeal the Denial

If you feel the reason that the PLUS loan was denied is no longer valid, you may appeal the credit decision with Federal Student Aid. 

  1. Login to studentaid.gov/appeal-credit/ with your FSA ID. 
  2. Under PLUS Loan Process select Document Extenuating Circumstances.
  3. Submit documentation showing the denial reason is no longer valid. If approved, Federal Student Aid will notify the TU Financial Aid Office. 

Obtain an Endorser

If you are unable to successfully appeal the credit decision, you may also find an endorser to co-sign your PLUS loan application. Choose an endorser with a strong credit history. 

  1. Your Endorser must log into studentaid.gov/endorser-addendum/ with their own FSA ID .
  2. Under PLUS Loan Process select Endorse a PLUS Loan.
  3. Enter the borrower's last name and the endorser code/award identification number the parent borrower received when denied the loan. 
  4. Fill out and submit Endorser Addendum.