We always recommend you borrow the Federal Direct loan first, Federal Graduate PLUS second and all other private educational loans as a last resort.

Graduate students can borrow up to $20,500 in the Direct Unsubsidized loan, based on your enrollment and cost of attendance. Students needing additional funds can borrow a Federal Graduate PLUS loan or private educational loan up to the cost of attendance less any other aid offered.  

Be aware, students cannot exceed the Cost of Attendance with any education-related loan even if they are credit approved.

Rates and fees vary between loan programs. All borrowers are encouraged to review the Federal Direct Unsubsidized loan and Federal Graduate PLUS loan sections for details. Private educational loan interest rates are based on the lender of choice.

All borrowers should secure funds annually (based on how they have been awarded) and not on a semester by semester basis. Borrowing annually minimizes application time, processing time and assures that funds will be available for both semesters. It also avoids multiple credit reports which can often have an adverse effect on your credit score.

Students who are denied a GradPLUS may elect to try and resolve the denial or seek an endorser (similar to a co-signer).

• To resolve a Denial students work directly with the Department of Education regarding the credit override and can contact Application Services directly at 800-557-7394.
• A Direct PLUS Loan borrower with an adverse credit history may still receive a Direct PLUS Loan if he/she obtains an endorser who does not have an adverse credit history. If seeking this option, an endorser would complete the Endorser Addendum and MPN. Additional information regarding the endorser process will be sent via email from the Department of Education.
• Students who have adverse credit and have obtained an endorser or documented extenuating circumstances accepted by the Department of Education must complete PLUS Credit Counseling before funds can be send to the school.
  Review the Credit Counseling area

Yes, taking out a federal student loan (Direct Unsubsidized or Graduate PLUS) before June 30, 2026, could help students keep access to Graduate PLUS Loans and the current aggregate and lifetime borrowing limits under the limited exception. However, borrowing just to ensure eligibility isn’t the right choice for everyone. Borrowing has long-term consequences, so talk with the financial aid office before deciding to borrow. 

After three academic years, or earlier if the student withdraws, ceases enrollment, or completes their program of study, they will no longer qualify for Graduate PLUS Loans and will become subject to the new aggregate and lifetime borrowing limits. 

Discuss other financing options, payment plans or private loans with your financial aid officer.