• Seton Hall University
• Office of Financial Aid

The U.S. Department of Education previously offered a loan program called the Direct Grad PLUS Loan, which are Federal loans in the Graduate student’s name. These loans are subject to origination fees and have a fixed interest rate for each academic year that is the same for all eligible borrowers.

If a student is either currently enrolled or starting their program prior to July 1, 2026, they can still use Grad PLUS loans until they finish their program (or up to three years, whichever is shorter). However, these loans will no longer be available for new borrowing starting July 1, 2026.

Eligibility requirements for the Grad PLUS Loan include:

• Completion of the FAFSA
• Enrollment at least half-time in an eligible program at an eligible school
• Compliance with the Satisfactory Academic Progress (SAP) standards set by the school
• Not having an adverse credit history (unless you meet other eligibility requirements for having a creditworthy endorser or an approved credit appeal)
  • Important: The credit check performed during the Grad PLUS loan application process is only valid for 180 days. If you complete another application outside of this window, another credit check will be run.
• Completion of a Master Promissory Note and Grad Entrance Counseling
• And again, current enrollment in the student’s program prior to July 1, 2026.

Students can apply for the PLUS Loan here. They also must complete certain forms of documentation after they apply for the Grad PLUS Loan for the funds to pay to their account. This includes a Grad PLUS Loan Master Promissory Note and Graduate Entrance Counseling.

FAQs

• If I am offered an unsubsidized loan, should I accept that prior to taking out a Grad PLUS Loan? »
  1. While we cannot give direct recommendations on what to take out, unsubsidized loans have lower interest rates and lower origination fees than PLUS loans, so most students will use up their yearly eligibility in unsubsidized loans prior to taking out other types of loans.
     
• What is the interest rate on a Grad PLUS Loan? When does it begin to accrue? »
  1. The Direct Grad PLUS Loan interest rate is fixed. Interest is charged on a Parent Plus Loan from the date of the first disbursement until the loan is paid in full. You can find current interest rates for all Federal loans here.
     
• What are origination fees? »
  a. The Direct Grad PLUS Loan program requires an origination fee. The Department of Education deducts a percentage of whatever you borrow as a fee for the processing of the loan—meaning that you will receive slightly less than the amount you request. You can find more information about origination fees here.
  b. Seton Hall provides students with a calculator to determine exactly how much to borrow to cover both their desired amount as well as the origination fees. You can access our Federal Loan Calculator here.
  
  
• How much money can I borrow? »
  1. The annual borrowing limit on a Direct Grad PLUS Loan is equal to your Estimated Cost of Attendance minus any other financial aid you receive, such as scholarships, grants, or unsubsidized loans.
  2. Seton Hall provides students with a calculator to determine exactly how much to borrow to cover both their desired amount as well as the origination fees. You can access our Federal Loan Calculator here.
• When do I need to start making payments? »
  1. There are two repayment options available for the Direct Grad PLUS loan, either: 
     1. 60 days after the loan is fully disbursed, or 
     2. Six months after you graduate or cease to be enrolled on at least a half-time basis.
  2. Students are asked on the application whether or not they would like to defer repayment of the loan. If they do not select this, the loan will automatically go into repayment 60 days after the loan is fully disbursed. You can contact your Loan Servicer if you would like to change your selection.
• Can I start making payments earlier if I chose to defer my loan payments? »
  1. If you chose to defer the loan but would like to make payments early, you can do so with your loan servicer shortly after its first disbursement. Federal student loans have no prepayment penalties, so you are able to make payments earlier if you prefer.
• Can I borrow a PLUS Loan to cover a past-due balance? »
  1. No, PLUS Loans cannot be used to cover balances for semesters that have already ended. PLUS Loans must be certified by Seton Hall prior to the last day of your last class of the semester with no exceptions, per federal regulations. As such, please ensure that you request the loan well before the semester ends to avoid losing eligibility.
  2. If you need a loan to cover a past-due balance, you must look for private lenders that cover these. Some lenders on ELMSelect allow coverage of past due balances, but not all do. It is up to the student to filter through these lenders to find those who offer this feature
     1. ***Please note: Private lenders that offer coverage of past due balances typically have a 365-day cutoff from when that semester has ended.
• What do I do if I was denied for the PLUS Loan due to my credit history? »
  1. The page that notified you of your credit denial gives you the option to either appeal the credit decision, or you can find an endorser (otherwise known as a cosigner). More information can be found at their respective hyperlinks.
  2. If you either appeal or endorse the loan and are later approved, you must complete a new MPN and PLUS Credit Counseling. These are required for each individual denial that has been overturned. If you borrow one loan for Fall and one for Spring that both utilized endorsers, for example, you must complete two MPNs and go through PLUS Credit Counseling.
• What are my options if I do not meet the eligibility requirements for the PLUS Loan? »
  1. If you do not meet eligibility requirements (not making SAP, not a US Citizen, etc.) you can look private lenders instead. You can use ELMSelect to find a lender, or you can use one that is not on that list as well.