Graduate PLUS Loan
Graduate PLUS Loans are credit-based, federal loans available to graduate and professional students. These loans may be necessary after the student has exhausted their other federal loan options for the year.
To be considered for a Grad PLUS Loan, you must:
- Be a graduate/professional student enrolled at least half time;
- Complete the Free Application for Federal Student Aid (FAFSA);
- First-time borrowers must complete a separate application/promissory note through their lender's website - it is recommended that borrowers choose the same lender for their Grad PLUS Loan as they have for their Stafford loan for ease of payment upon graduation;
- First-time borrowers must also complete Graduate PLUS Loan Entrance Counseling (click "Grad PLUS entrance" link in the "Entrance counseling sessions" box)
Keep the following in mind as well:
- Borrowers must pass a basic credit check
- Borrowers failing the credit check can ask their lender to send an Addendum allowing the student to apply with a credit-worthy endorser
- Grad PLUS loans cannot exceed the cost of attendance minus all other aid that has been awarded
- The interest rate is fixed at 8.5% and begins to accumulate at the time of the first disbursement (similar to the Unsubsidized Stafford Loan)
- There will be a 3% loan fee deducted from each disbursement of the loan
- Repayment begins immediately upon graduation/dropping below half-time (there is no grace period)
Updated 2/12/2008
|
