Direct	PLUS	Loans	are	available	to	parents	of	dependent	undergraduate	students	and	to	graduate	and	professional
students.	Note	that	a	Direct	PLUS	Loan	does	not	count	against	a	graduate/professional	student9s	Direct	Unsubsidized
Loan	annual	or	aggregate	loan	limits.
You	may	not	limit	Direct	Loan	borrowing	by	students	or	parents	on	an	across-the-board	or	categorical	basis	(for	more
information,	see	<Refusing	to	Originate	a	Loan	or	Originating	for	Less	Than	Maximum	Eligibility=	in	Volume	8,	Chapter
1).
Packaging	When	a	Student	Chooses	Not	To	Borrow	Direct	Subsidized	Loans	or	Direct	Unsubsidized	Loans
If	a	graduate	Direct	PLUS	Loan	borrower	has	not	requested	the	maximum	Direct	Unsubsidized	Loan	amount	for	which	they
are	eligible,	you	must:
Notify	the	borrower	of	their	maximum	Direct	Unsubsidized	Loan	eligibility;
Provide	the	borrower	with	a	comparison	of	the	maximum	interest	rates	for	Direct	Unsubsidized	Loans	and	Direct
PLUS	Loans;
Explain	when	a	Direct	Unsubsidized	Loan	enters	repayment	and	when	a	Direct	PLUS	Loan	enters	repayment;	and
Give	the	borrower	the	opportunity	to	request	the	maximum	Direct	Unsubsidized	Loan	for	which	they	are	eligible.
If	a	dependent	student	for	whom	a	parent	is	borrowing	a	Direct	PLUS	Loan	chooses	not	to	apply	for	a	Direct	Subsidized	or
Unsubsidized	Loan,	the	Direct	Subsidized/Unsubsidized	Loan	amount	that	the	student	would	have	been	eligible	to	receive
is	not	counted	as	OFA	when	determining	the	amount	of	the	Direct	PLUS	Loan.	The	same	principle	applies	when	a
graduate	or	professional	student	is	eligible	for	a	Direct	Unsubsidized	Loan	but	chooses	to	borrow	only	a	Direct	PLUS	Loan.
Packaging	Aid	for	Certain	Dependents	of	Deceased	Servicemembers	or	Public	Safety	Officers	(Pell	Grant	Special	Rule)
Volume	3,	Chapter	3,	Example	2:	Graduate/Professional	PLUS	Packaging
A	student	enrolls	in	a	graduate-level	program	with	a	total	COA	of	$31,000.	The	student	has	an	annual	loan	limit	of
$20,500	for	Direct	Unsubsidized	Loans	and	is	also	eligible	for	Direct	PLUS	Loans.
Eligibility	for	Direct	Unsubsidized	Loans	is	determined	by	subtracting	OFA	from	the	COA.	The	SAI	is	not	taken	into
consideration.	The	student	has	already	been	awarded	a	graduate	scholarship	of	$5,000.	Subtracting	this	OFA	from
the	COA	leaves	$26,000	in	unmet	costs	that	the	school	partially	covers	by	awarding	the	student	a	$20,500	Direct
Unsubsidized	Loan.	The	student	now	has	$5,500	in	remaining	costs.
$31,000	COA
-	5,000	scholarship
-	20,500	Direct	Unsubsidized	Loan
$5,500	remaining	costs
As	with	Direct	Unsubsidized	Loans,	eligibility	for	Direct	PLUS	Loans	is	determined	by	subtracting	OFA	from	the
COA.	Subtracting	the	scholarship	and	Direct	Unsubsidized	Loan	from	the	COA	allows	the	student	to	receive	a
Direct	PLUS	Loan	for	$5,500	to	fully	cover	the	COA.
$31,000	COA
-5,000	scholarship
-20,500	Direct	Unsubsidized	Loan
-5,500	Direct	PLUS	Loan
$0	remaining	costs
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