Direct Graduate PLUS Loans

The Federal Direct PLUS Loan for Graduate Students allows students to borrow funds beyond the limits of the Federal Direct Loan Program.

Students enrolling after July 1, 2026 are not eligible for this program.

Eligibility

The Grad/PLUS Direct Loan requires that the student borrower:

• Complete the FAFSA (Free Application for Federal Student Aid)
• Be enrolled a minimum of half-time status and maintain academic progress.
• Applicants must have their maximum eligibility in the Direct Loan Program before PLUS loan funds are applied
• Complete Entrance Loan Counseling and a Direct PLUS Master Promissory Note (MPN) before receiving funds.

Legacy Exception for Existing Borrowers

To qualify, you must meet all of the following conditions:

• Be enrolled in the same program of study at the UM-Dearborn as of June 30, 2026.
• Have borrowed a Direct Loan for that program before July 1, 2026.
• Do not take a break (leave of absence, completely withdraw, take an academic pause) in enrollment in the same program after July 1, 2026
• Remain continuously enrolled in the same program until you finish your program or for up to three academic years (whichever comes first).
   

PLUS Credit Counseling is also available to help students and parents understand the obligations associated with borrowing a PLUS loan and assist them in making careful decisions about taking on student loan debt.

PLUS Credit Counseling is required if the U.S. Department of Education has informed you that you have an adverse credit history and you have:

• Obtained an endorser or
• Documented extenuating circumstances to the satisfaction of the U.S. Department of Education

PLUS Credit Counseling can be completed voluntarily at any time. If PLUS Credit Counseling is completed voluntarily and you are determined to have an adverse credit history by the U.S. Department of Education within 30 days of PLUS Credit Counseling completion, your PLUS Credit Counseling requirement will be considered to be fulfilled.

More information about Graduate PLUS loans can be found on the Federal Student Aid website.

Beginning July 1, 2026, Federal Direct Loan eligibility will be based on your enrollment level. If you are enrolled in fewer than the number of credits required for full-time enrollment during the academic year, your annual Federal Direct Loan amount may be reduced proportionally.

Your loan eligibility is calculated in two steps:

Step 1: Determine your enrollment percentage (Schedule of Reduction).

Divide the number of credits you are enrolled in by the number of credits required for full-time enrollment during the academic year.

Credit Hours Enrolled ÷ Credit Hours Required for Full-Time Enrollment = Schedule of Reduction (SOR)

Step 2: Calculate your annual loan eligibility.

Multiply your Schedule of Reduction percentage by your maximum possible Grad PLUS amount.

Annual Loan Limit × SOR = Prorated Loan Amount