Direct Grad PLUS Loans

Direct Grad PLUS Loans are unsubsidized loans for graduate/professional students. Grad PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods.

Grad PLUS Application Process

First, complete the Free Application for Federal Student Aid (FAFSA). After you have received an award notification and decided that a Grad PLUS loan is the best fit for you, apply through the U.S. Department of Education by completing the following steps:

• Go to studentaid.gov
• You will be asked to sign in with FSA ID.
• Select "Apply for a Direct Plus Loan".
• Choose the Grad PLUS loan type. Go through the application process (which includes a credit check) to confirm approval or denial of the loan.
• Choose a loan period. You should apply for the academic year, not one semester/quarter. You will have to repeat the application process (and possibly the credit check) if you apply for the fall only and later wish to apply for another semester/quarter.
• Specify a loan amount. If "maximum amount" is selected, we will process the loan for the maximum amount available (cost of attendance minus all other financial aid received.) We encourage you to review your expenses carefully and apply only for the amount necessary.
• If approved, first-time borrowers only must continue by choosing Complete Master Promissory Note. Repeat borrowers have completed the process.
• If denied, you will be presented with several options.
• The Department of Education will send a confirmation or denial to the Bay Path University Student Financial Services Office and to you.

Amount Available to Borrow

The limit on a Grad PLUS Loan is the student's cost of attendance minus any other financial aid received. You apply for the academic year (fall/spring semesters or fall/spring/summer). The total origination fee is 4.228%, and the interest rate is 8.94%. Origination fees and interest rates are reviewed and announced by the Department of Education each year. Go to Loan Disclosure Statement to view a sample. You will receive a statement specific to your loan before your loan is disbursed.

Credit Eligibility

Federal regulations define credit eligibility for a Grad PLUS Loan as having no "adverse credit." This term normally means that the applicant has no debt repayment account that is 90 days or more delinquent, has not had any debt discharged in bankruptcy in the last 5 years, and has not been in default on any debt (no foreclosure, tax lien, repossession, wage garnishment, or write-off) in the last 5 years. An applicant will be determined to have an adverse credit history if the total combined outstanding balance of the debts, including debts in collection or charged off during the two years preceding the date of the credit report, is greater than $2,085.

Timing of Application

Important Note for 2026: Under new federal regulations, the Grad PLUS loan program is being discontinued for new borrowers as of July 1, 2026. Only students who were enrolled in their current program and received a federal loan (Stafford or PLUS) before June 30, 2026, are eligible to continue borrowing under the Grad PLUS program via the Legacy Provision.

The credit check for a Grad PLUS loan is valid for 180 days. Disbursement for Fall 2026 is scheduled after the add/drop period is completed. You can apply for a PLUS or Grad PLUS loan for the 2026-2027 academic year no earlier than May 15, 2026. 

Next Steps for Approved Loans
All first-time borrowers must complete the Master Promissory Note (MPN) and Grad PLUS borrowers must also complete entrance counseling at studentaid.gov. If the Department of Education approves your loan, the Department of Education will notify Bay Path University and will send the loan funds to the school shortly before the semester/quarter begins. The funds will first be applied to tuition, fees, room and board, and other school charges. If any loan funds remain, they will be disbursed based on your authorization on the application form. Grad PLUS Loans require the student be enrolled in at least half-time hours.

Next Steps for Denied Grad PLUS Borrowers

If you are denied a Grad PLUS, you have the option to either appeal the decision, add an endorser, or pursue a private alternative loan. You appeal the decision directly to the Department of Education and might qualify for a loan without passing the credit check if you can demonstrate that extenuating circumstances exist. And endorser is a relative or friend who is able to pass the credit check and agrees to endorse the loan. An endorser promises to repay the loan if you fail to do so.

Right to Decline

You have the right to decline any financial aid that you are offered. You have a number of rights and responsibilities pertaining to borrowing student loans. Contact Student Financial Services if you are declining the financial aid offered.

Entrance Counseling

Regular entrance counseling is required for all first-time Grad PLUS (graduate student) borrowers. Go to studentaid.gov and log in with your FSA ID to complete entrance counseling. Credit entrance counseling is required for certain PLUS (parent) borrowers. Parents who are approved for PLUS with an endorser or have an approved appealed credit decision will be required to complete credit entrance counseling. These borrowers will be notified if credit entrance counseling is required.

Exit Counseling

Exit counseling is required for student borrowers (Grad PLUS) but is not required for PLUS (parent) borrowers. Exit counseling is required when you drop below half-time hours, withdraw, graduate, or stop attending. You are required to complete exit counseling by logging in with your FSA ID at studentaid.gov.

Repayment

There is no grace period for a Direct Grad PLUS Loan. While you are enrolled at least half-time, your loan is placed in an automatic deferment; however, interest continues to accrue. You must separately request the additional six-month post-enrollment deferment if it is not automatically applied by your servicer. Generally, you will have from 10 to 25 years to repay your loan under the new Tiered Standard Repayment Plan, depending on your total loan balance. If you borrowed your first loan on or after July 1, 2026, or if you take out a new loan after that date, your repayment options are limited to: 

• Tiered Standard Plan: Fixed payments over 10 to 25 years. 
• Repayment Assistance Plan (RAP): An income-based plan with monthly payments between 1% and 10% of your Adjusted Gross Income (AGI).

Note that the RAP requires a minimum payment of $10/month and offers forgiveness only after 30 years of qualifying payments. The loan servicer will notify you of the date your first payment is due.

If you do not choose a plan, you will be placed on the Standard Plan by default. Under the 2026 regulations, once you enroll in the RAP, you cannot switch back to the Standard Plan. For more detailed information on these two primary options, visit studentaid.gov.