Federal Direct PLUS Loans

The PLUS loan is a federally funded loan from the U.S. Department of Education. Students must be enrolled at least half time (6 undergraduate units or 4 graduate units).

There are two types of PLUS loans:

• Parent PLUS Loans: For parents/stepparents of dependent undergraduate students. Stepparents are eligible as long as their information is included on the Free Application for Federal Student Aid (FAFSA). 
• Graduate/Professional PLUS Loans: Students must be accepted and enrolled in a master's degree program. 

Application Deadlines

2023-24 Deadlines to apply:

• December 8, 2023: For Fall 2023 term only  
• April 26, 2024: For full academic year loan, or Spring 2024 only

How to Apply

Applying for the Parent PLUS Loan

Step 1: 

• Student accepts the PLUS loan offered on their MySJSU.
• Next, the borrower (parent or step-parent) goes to StudentAid.gov 
• Under "Apply for Aid," click on "Apply for a Direct Parent PLUS Loan"
• For type of Direct PLUS Loan Application, select "START"
• Parent logs in with your personal FSA ID and Password
• Select the Award Year. Typically, this process becomes available in July.
• School Name: SAN JOSE STATE UNIVERSITY
• Parents: You will be asked if you would prefer to have any credit balance (refund after fees have been paid to the school) sent to either you (the parent borrower) or directly to your student. You will also be asked if you wish to request for a deferment (postponement) of your loan payment while your student is enrolled, as well as if you wish to request a 6 month deferment if your student ceases to be enrolled at least half time. 
• Loan Amount Requested: Indicate the amount you wish to borrow. You can request any amount not to exceed the maximum amount offered on your student’s MySJSU award notice.

Step 2: 

• After the credit is approved, first-time PLUS Loan borrowers must also complete a Master Promissory Note (MPN). If you completed an MPN for a previous San Jose State University PLUS Loan, you may not need to complete this step.
• Go to StudentAid.gov. Under "Complete Aid Process," click on Parent PLUS MPN.
• Log in with your personal FSA ID and Password and follow the prompts. 
• Apply for a PLUS loan early! Loan process can take up to 3 weeks once application is submitted. 

Applying for the Graduate/Professional PLUS Loan

After accepting the loan in MySJSU, the credit check is automatically processed. Students will receive communication from the Department of Education regarding the credit approval/denial. If the credit is approved, this indicates you are eligible to borrow the Graduate PLUS loan.

First-time Graduate PLUS Loan borrowers must complete Loan Entrance Counseling. If you completed Loan Entrance Counseling for a previous San Jose State University Graduate PLUS Loan, you may not need to complete this step.

1. Go to StudentAid.gov 

2. Under "Complete Aid Process" click on Grad PLUS MPN

3. Log in with your FSA ID and Password and follow the prompts

Note: After all the steps are completed successfully, allow up to 3 weeks for processing and for PLUS loan checklist items to be updated from the student's To Do List. 

• What happens if my PLUS application is denied?

  • Parents: If selected when applying, the school will offer the student an additional Unsubsidized loan based on the parent's credit being denied.

    For Freshmen and Sophomores, the maximum additional Unsubsidized Loan for the academic year is $4,000.

    For Juniors and Seniors, the maximum additional Unsubsidized Loan for the academic year is $5,000.

    Option 1 - Appeal:
    Appeal the decision by going to the Federal Student Aid website. Under the "Apply for Aid" tab, click on "Appeal a credit decision" (you will need to log in with your FSA ID and password).

    If the appeal is approved, you must complete an additional loan counseling known as PLUS Credit Counseling. PLUS Credit Counseling is a requirement if you had an adverse credit history but were able to document extenuating circumstances to the satisfaction of the U.S. Department of Education.
    

    To complete counseling, to the Federal Student Aid website. Under the "Apply for Aid" tab, click on "Complete PLUS Credit Counseling".

    Option 2 - Endorser:
    Steps for Parent to complete:
    Complete a new Master Promissory Note (MPN) at StudentAid.gov; under the "Complete Aid Process" tab, click on "Parent PLUS MPN." 

    PLUS Credit Counseling is a requirement since your credit was denied. Go to to the Federal Student Aid website. Under "Apply for Aid" tab, click on "Complete PLUS credit counseling."

    Steps for Endorser to complete:
    The endorser must go to to the Federal Student Aid website and create his or her own personal FSA User ID & Password, if they don't already have one.

    Go to to the Federal Student Aid website. Under the "Apply for Aid" tab, click on "Endorse a PLUS Loan." The U.S. Department of Education will have provided an endorser code to the parent borrower after credit was initially denied. The parent may find this code in their Email.

• What will my interest rate and origination fee be?

  • Interest accrues on the unpaid balance of the loan from the date of disbursement by the school until the entire principal balance is paid in full.

    Failure to make monthly or quarterly interest payments results in the interest being capitalized (added to the principal of the loan).

• How much money am I eligible to borrow?

  • Unlike other types of financial aid, the PLUS Loan is not need based. The maximum eligibility amount is determined by the student's cost of attendance minus any financial aid that the student has been awarded.

    The PLUS loan can replace all or a portion of a student's financial aid award. PLUS applicants can borrow up to the full cost of attendance if the student declines all offered student loans (Subsidized/Unsubsidized).

    Parents/Graduate students do not need to to apply for the entire loan amount being offered to the student (refer to MySJSU portal for the amount of the PLUS Loan eligible to borrow). Parents/students should calculate the amount they need.

    Parents: if your student does not intend on using Federal Work Study, you can add that amount to the PLUS loan request.

     

• What if I change my mind about the PLUS Loan after applying?
  • Approval of a PLUS Loan application does not commit you to accepting the loan. If approved, you must contact the Financial Aid and Scholarship Office to cancel or reduce the accepted PLUS Loan amount. You can also fill out the PLUS addendum form asking us to cancel the loan (Link to form available soon)
• How will I receive my PLUS Loan funds?

  • If the loan is for one semester, the loan will be disbursed in one disbursement. If the loan is a full-year loan, the loan will be disbursed in two increments: first half in the fall and the second half in the spring.

    If the student owes money to San Jose State University, the university deducts all financial obligations first, and forwards the balance to the borrower.

    For a Parent PLUS loan, a check is sent to the parent if the borrower is the refund preference. Otherwise, if the student is the refund preference, a check is sent to the student or direct deposit is initiated. We encourage students to sign up for direct deposit.

• When will I have to begin repaying the PLUS Loan?

  • Repayment and interest will apply to funds after the loan has been disbursed. The first payment of interest and principal are due within 60 days after the loan is fully disbursed.

    An in-school deferment may be requested while the student is enrolled at least half time (6 undergraduate units; 4 graduate/professional units).

    Parents: If the student drops to less than half time or withdraws during the period for which the loan was intended, the entire amount of the PLUS Loan is immediately due.

    Graduate/Professional Students: Interest that accrues will be capitalized if not paid by the student 

• Whom should I contact with questions?

  • Contact Financial Aid counselor Amber Kizniene by emailing Amber.Kizniene@sjsu.edu.