Direct PLUS Loan funding is available to assist students and parents with meeting their educational expenses beyond the demonstrated need. The recent budget reconciliation bill (H.R. 1 passed by the 119th Congress and signed into law July 4, 2025) results in several changes to Federal Student Aid.

Direct PLUS Loans require applicants and endorsers to have a citizenship status of either U.S. Citizen or U.S. Permanent Resident. Students must complete the Free Application for Federal Student Aid (FAFSA) and be enrolled at least half time for funds to disburse to the student's account. For undergraduates, this means enrolling in at least six (6) credit hours. Graduate students must enroll in a minimum of four and one-half (4.5) credit hours. All loans are disbursed into two equal parts, unless you specifically request one semester only. The lender for these loans is the U.S. Department of Education. On July 1, borrowers will be able to view interest rates for the new academic year. Please visit the U.S. Department of Education for additional detailed information.

To learn more about how the law affects Rice financial aid programs, download the Impact of Sequestration.

The Direct PLUS Loan Program includes:

• The Direct PLUS Loan for Graduate Students: A credit-based, fixed rate loan that enables graduate or professional students to borrow funds to meet their educational expenses. Students may apply with an endorser. Beginning July 1, 2026, the Graduate PLUS loan will be eliminated for new borrowing.
  • Interest rates and fees can be found on the federal website.
• The Direct PLUS Loan for Parents: A credit-based, fixed rate loan that parents of undergraduate students can borrow on the student’s behalf to meet educational expenses. Parents may apply with an endorser.
  • Interest rates and fees can be found on the federal website.

2026-2027 Direct PLUS Loan Interest Rates*

*Interest rates above are for loans disbursed from July 1, 2026 through June 30, 2027. For interest rates on loans disbursed before July 1, 2026, click here.

PLUS Loan Limits

To apply for a Direct PLUS Loan:

• Apply for the Direct PLUS online: The Office of Financial Aid will electronically receive your request and process it within three to five business days. The Direct PLUS Loan for Parents can be viewed under the student’s Esther account once it has been processed. If your loan is denied, the student may be eligible for an additional unsubsidized loan to aid in educational expenses.
• Sign the Master Promissory Note (MPN) in order to complete the loan process. All signed MPNs will receive a confirmation email following signature. If you have more than one child attending the same institution, you must complete a separate MPN for each student.
• Complete the Annual Student Loan Acknowledgement (ASLA) each year. This will be effective starting in the 22-23 academic year. You have the option to reduce or cancel your loan prior to disbursement or within 14 days after the funds have disbursed. As of March 29, 2015, the Department of Education will require loan counseling for any PLUS applicant who has been denied the loan and wishes to be reconsidered by adding a cosigner or by submitting documentation of extenuating circumstances.