Federal Direct Plus Loans

Annual Limits

Students may borrow up to the Cost of Attendance less any other financial aid each academic year.

Aggregate Limits

There is no aggregate limit to borrowing.

Interest Rates

The interest rates and are set by the Department of Education each academic year and are fixed for the life of the loan.

For 2025-26, the current interest rate is:  8.94%.

Loan Fees

An origination fee is also deducted from the awarded amount before the loan is disbursed to the student account. 

For loans disbursed on or after 10/1/2019 and before 10/1/2020: 4.236%

For loans disbursed on or after 10/1/2020 and before 10/1/2026: 4.228%

Eligibility Requirements

To be eligible to apply for a Federal Direct Graduate PLUS Loan, students must:

• be a graduate or professional student enrolled at least half-time at an eligible school in a program leading to a graduate or professional degree or certificate;

• not have an adverse credit history (unless you meet certain additional eligibility requirements); and

• meet the general eligibility requirements for federal student aid.

How to Apply

Students are encouraged to take advantage of their annual Federal Unsubsidized Direct Loan eligibility before applying for a Graduate PLUS Loan because the terms and conditions are more favorable than those for the Graduate PLUS Loan.

Before applying for a grad PLUS loan, please complete the FAFSA form.

Students can then fill out and submit the online Graduate PLUS loan application. Once processed, the student will receive the results of the loan's credit check. 

If approved, a first-time borrower will need to sign a Graduate PLUS Master Promissory Note.

Student borrowers who are not approved due to adverse credit history, can pursue an endorser or a credit override by calling the Direct Loan Applicant Services Center at 1-800-557-7394.

Loan Processing

• PLUS Loans are only processed once the student has registered for the first term indicated they will attend on the loan application.
• If a student applies before they are registered the loan will not be processed until they are registered.
• Students who apply before they register should notify Student Financial Services once they have registered to continue the processing of the loan.
• PLUS Loan credit checks are only valid for 6 months.

Loan Disbursement

Loan funds will automatically be disbursed to the student's Seattle University account at least 10 days before the first day of class each quarter as long as all the requirements are met including enrollment.

Students must be enrolled at least half-time (3+ credits) to be eligible for federal loans, however, beginning with the 2026-27 academic year, federal loans will be pro-rated for students enrolled less than full-time (less than 6 credits).

Funds disbursed in excess of the tuition balance due will be processed as a Credit Balance Refund.

Loan Servicers

Once disbursed, Graduate PLUS Loans are assigned to a loan servicer.  Loan servicers are responsible for answering loan account questions, processing deferments and forbearances, sending out bills and processing loan payments.  Students with more than one loan may have more than one loan servicer.

Students can go to the Federal Student Aid website and log in to see which loan servicer(s) is responsible for their loan(s).  They can also call the Federal Student Aid Information Center at 1-800-433-3243 for this information.

Student borrowers are responsible for ensuring that their loan servicer(s) always has their current billing address and phone number.

Repayment

Repayment begins 60 days after the loan is fully disbursed each year: automatic deferment may be available while enrolled at least half-time.

Exit Counseling

Exit Counseling is required for students who graduate, cease enrollment or drop below half-time. The purpose of exit counseling is to ensure students understand their loan obligations and repayment options. Students will learn about what federal student loan payments will look like after school and recommended repayment strategies that best suits future plans and goals.

Seattle University will send an email to the SU email account for students who fall into these categories requesting they complete the exit counseling session online.

Bankruptcy Limitations

Students who file for bankruptcy may still be required to pay back this loan.

Annual Limits

For 2025-26 and for legacy status parent borrowers, the annual limit is up to the Cost of Attendance, less any other financial aid.

Beginning July 1,2026, for new parent borrowers the annual limit is $20,000 per dependent student until they reach the aggregate (lifetime) limit.

Aggregate Limits

For 2025-26 and for legacy status parent borrowers, there is no aggregate limit.

Beginning July 1, 2026, for new parent borrowers, the aggregate limit is $65,000 (for all parent borrowers combined) per dependent student.

Interest Rates

The interest rates and are set for each academic year (July 1st - June 30th) and are fixed for the life of the loan.

For 2025-26, the current interest rate is:  8.94%.

Loan Fees

An origination fee is also deducted from the awarded amount before the loan is disbursed to the student account. 

For loans disbursed on or after 10/1/2020 and before 10/1/2026: 4.228%

For loans disbursed on or after 10/1/2019 and before 10/1/2020: 4.236%

Eligibility Requirements

To receive a Parent PLUS loan, you must be the biological or adoptive parent (or in some cases, the stepparent) of a dependent undergraduate student enrolled at least half-time at an eligible school, not have adverse credit history and meet the general eligibility requirements for federal student aid.

How to Apply

Parent borrowers apply for this loan online on the Federal Student Aid website. Once processed, the parent borrower will receive the results of the loan's credit check. 

If the credit check is approved, a first-time parent borrower will be required to sign the Federal Direct PLUS Master Promissory Note (MPN) using their own FSA ID username and password. Once the MPN is completed, the Office of Student Financial Services will be notified and begin processing the loan. 

Parent borrowers who do not pass the credit check, due to adverse credit history, can pursue an endorser or a credit override by calling the Direct Loan Applicant Services Center at 1-800-557-7394. 

If an endorser or a credit appeal is not an option, students may contact Student Financial Services to request an additional Unsubsidized Stafford Loan which is available only to undergraduate students whose parents have been denied a Parent PLUS Loan. 

Loan Processing

• PLUS Loans are only processed once the student has registered for the first term indicated they will attend on the loan application.
• If a parent applies before the student is registered the loan will not be processed until they are registered.
• Students or parent borrowers should notify Student Financial Services once they have registered to continue the processing of the loan.
• PLUS Loan credit checks are only valid for 6 months.

Loan Disbursement

Loan funds will automatically be disbursed to the student's Seattle University account at least 10 days before the first day of class each quarter as long as all the requirements are met including enrollment.

Students must be enrolled at least half-time (6+ credits) to be eligible for federal loans. Parent PLUS Loans are not subject to proration for less than full-time enrollment.

Funds disbursed in excess of the tuition balance due will be processed as a Credit Balance Refund. 

The portion of the credit balance on the account created by the Parent PLUS loan must be mailed directly to the parent borrower unless, as part of the application process, the student’s parent consented to allow the refund from their loan to be sent to the student. Parent borrowers may request, in writing, a change in the credit balance delivery by reaching out to Student Financial Services via email. 

Loan Servicers

Once disbursed, Parent PLUS Loans are assigned to a loan servicer.  Loan servicers are responsible for answering loan account questions, processing deferments and forbearances, sending out bills and processing loan payments.  Parent borrowers with more than one loan may have more than one loan servicer.

Parent borrowers can go to the Federal Student Aid website and log in to see which loan servicer(s) is responsible for their loan(s).  They can also call the Federal Student Aid Information Center at 1-800-433-3243 for this information.

Parent borrowers are responsible for ensuring that their loan servicer(s) always has their current billing address and phone number.

Repayment

Repayment begins 60 days after the loan is fully disbursed each year. Parent borrowers may request that payments be deferred while their student is enrolled by calling their loan servicer.

Exit Counseling

Parent borrowers are not required to complete exit counseling.

Bankruptcy Limitations

Parents who file for bankruptcy may still be required to pay back this loan.