FEDERAL DIRECT PLUS LOAN APPLICATION Loan Request Form - umaine 2025

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What Are Some Reasons to Avoid PLUS Loans? First, PLUS loans have no automatic grace period. Then theres the fact they arent eligible for most IDR plans. Then, borrowing too much is easy to do, and finally, theyre nearly impossible to get out of, even in bankruptcy.
But during the Direct PLUS Loan Application process, youll go through a credit check to confirm one specific requirement: not having an adverse credit history. a recent bankruptcy discharge, tax lien, wage garnishment, or foreclosure.
Higher interest rates than other federal loans With the parent PLUS loan at a higher interest rate, youd be paying thousands of dollars more in interest than the unsubsidized federal loan. For some families, it might be a better option to take out a loan in the students name to access these lower fees.
Completing the Online Application: (Note: The online PLUS application for 2025-2026 should not be submitted before June 1, 2025.) You may apply for a Direct PLUS Loan at studentaid.gov.
Standard Repayment PlanUnder this plan, youll have fixed monthly payments for up to 10 years. Graduated Repayment PlanUnder this plan, your payments will start off lower and then gradually increase, usually every two years. You must repay the loan in 10 years.

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The school will first apply parent PLUS loan funds to the students school account to pay for tuition, fees, room and board, and other school charges. If any loan funds remain, your childs school will give them to you to help pay other education expenses for the student.
The Federal Direct PLUS loan program is designed to assist parents of dependent undergraduate students who are unable to meet their expected parental contribution or have additional financial need that is not met with other financial aid resources.

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