Federal Direct Graduate PLUS Loans

The Health Care and Education Affordability Reconciliation Act of 2010 mandates that all federal student loans with a disbursement date on or after July 1, 2010 be originated and disbursed under the Federal Direct Loan Program (FDLP). Financial institutions, including Commerce Bank, will no longer fund any new Federal Stafford and PLUS student loans. Commerce Bank has been in the student lending business for over 45 years and will continue to provide customer support for loans that were initially disbursed prior to June 30, 2010.

Federal Direct Graduate PLUS Loans are available to Graduate and Professional students that can cover up to the total cost of attendance minus other aid received.


Total Cost of Attendance $25,000
Financial Aid Received - $20,500
PLUS Loan Eligibility = $4,500

Graduate students are required to have completed the Free Application for Federal Student Aid (FAFSA) and must apply their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying. Federal Direct Graduate PLUS Loans are subject to credit approval.

  • Low interest rate, currently fixed at 7.9%* APR (July 1, 2011)
  • There is a fee of 4% of the loan amount, deducted proportionately each time a loan disbursement is made
  • Automatically deferred while in school at least half-time
  • Interest begins accruing upon disbursement
  • Eligible for 6-month deferment after dropping below half-time enrollment
  • Flexible repayment terms (no prepayment penalties)
  • Interest paid may qualify for a tax deduction**

Important Disclaimers:

  • Interest rates are effective 7/1/11. The rates and other information set forth above have been obtained from sources deemed reliable, but do not constitute representations of Commerce Bank, nor shall this be considered an offer by Commerce Bank to fund any loan at rates other than those established by the United States Department of Education.
  • Consult a tax advisor for details. IRS Publication 970, Tax Benefits for Higher Education, explains these credits and other tax benefits.
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