The interest rate is a fixed 7.9% and is charged on the loan from the time the loan funds are disbursed until it is paid in full.

In addition to interest, the Federal PLUS Loan has a 4.0% origination fee.  This fee reduces the amount that disburses to the student’s account. For example, if $5,000 is borrowed under the Federal Direct PLUS Loan program, $160 will be deducted from the student’s loan amount and paid directly to the U.S. Department of Education.