Promissory Note / Master Promissory Note (MPN)
A promissory note is a binding legal document a student must sign before loan funds can be disbursed by the lender. The promissory note outlines the terms and conditions of the loan, including the repayment schedule, the interest rate and cancellation conditions. Using a master promissory note (MPN) enables you to sign one note to receive multiple loans in different academic years under the same program. An MPN is good for 10 years, after which it must be signed again for additional funds.
Ford Federal Direct Grad PLUS Loan
IMPORTANT! Please read the information on this page before clicking on the Grad PLUS online application link at the bottom of the page.
Ford Federal Direct Grad PLUS (Grad PLUS) are loans from the U.S. Department of Education that provide additional funds for graduate and professional students whose educational expenses are not met by other types of aid.
- Enrollment at least half time in a degree-seeking graduate or professional program
- Completed and processed Free Application for Federal Aid (FAFSA)
- No default on any type of student loan
- No outstanding debt on a student grant
- Credit approval by U.S. Department of Education (ED)
- A graduate or professional student borrowing a Grad PLUS for the first time must sign a master promissory note (MPN).
- Subsequent loans do not require a new MPN unless you obtained an endorser for the approval of your loan.
Loan entrance counseling
- A graduate or professional student borrowing a Grad PLUS for the first time must complete loan entrance counseling
- Subsequent loans do not require loan entrance counseling
The borrower must pass a credit check. Approval of the loan is strictly based on your credit rating. Debt-to-income is not a deciding factor, therefore, the amount of loan you request does not affect your approval for the loan. If you are denied you may appeal the decision or apply with a credit-worthy endorser.
After you have satisfied all eligibility requirements, loan money is paid to your university account in two installments.
When the loan is disbursed, the Department of Education calculates a 4.292 percent processing fee.
Interest and repayment
The interest rate on the Grad PLUS is at 6.84 percent for loans disbursed between July 1, 2015 and June 30, 2016.
Repayment begins within 60 days of the final loan disbursement. Principal and interest payments may be deferred if the borrower meets deferment requirements. Graduate and professional student PLUS borrowers may defer repayment while they are enrolled in school at least half-time and for six months after they cease to be enrolled at least half-time.
Interest is charged while in school and may be allowed to accrue and be capitalized at the end of deferment period.
Completing the online application (IMPORTANT!)
- MU utilizes the Department of Education’s Grad PLUS request process. The web link below will take you to the Department of Education’s student loan website. Once you submit the application, you will know immediately whether your loan was approved or denied.
- You (the student) will need a Federal Student Aid ID (FSA ID) to apply. If you did not already obtain one to sign the FAFSA form, you may request one at fsaid.ed.gov. If you have an FSA ID, but cannot remember it, you may use this website to retrieve it.
- Once you have your FSA ID and password, navigate to the link below and click on the LogIn Button located in the upper right hand corner.
- Enter your personal information and click the Login button.
- If you are successful at logging in, you will see a page titled Welcome to StudentLoans.gov. Your personal information will be located on the right hand side of the screen.
- Click on the link Request a Direct PLUS loan.
- On the next page read the information and click on the Graduate PLUS loan type at the bottom of the page. This will open the application.
- Once you have submitted the application and have been approved, the MU Financial Aid Office will be notified within 2 business days of your request for a PLUS loan.
- PLUS Counseling is required if you initially do not pass a credit check but are approved because you obtain a co-signer or you appeal your denial and submit supporting documentation.
- PLUS Counseling is a new requirement effective March 30,2015.
- PLUS Counseling is not the same as Loan Entrance Counseling. You may be required to complete both PLUS Counseling and Loan Entrance Counseling.
To apply for a Graduate PLUS loan, click on Graduate PLUS Online Application and follow the instructions below.
- You are directed to the federal loan website, Studentloans.gov
- In the upper right of the screen, click on the LogIn button
- You (the student) must sign in using your FSA ID
- Click on Request a Direct PLUS Loan
- At the bottom of the page, under "Select the Loan Type", click on "Graduate PLUS"
Fall 2015 and Spring 2016 loan instructions
- Under Award Year, select 2015-2016
- Under Loan Period, select the months you want to borrow the loan for
Fall 2015 and Spring 2016 loan = August 2015 loan period begin date and May 2016 loan period end date