Federal Graduate PLUS loan
Pay for grad school with the Federal Graduate PLUS loan. Grad PLUS loans are federally sponsored loans for students attending graduate school. With a Graduate PLUS loan, you may borrow up to the full cost of your education, less other financial aid received including Federal Stafford loans.
Graduate students are encouraged to exhaust their eligiblity for both subsidized and unsubsidized Federal Stafford loans before seeking additional financing through Graduate PLUS.
Eligibility
- You may be eligible for a Graduate PLUS loan if you are enrolled in school at least half time.
- A credit check is required.
- You must be a U.S. citizen or national, a U.S. permanent resident, or an eligible non-citizen.
- You must submit a FAFSA.
- Flexible repayment options are available.
- No payments while you are in school at least half time.
- There is no prepayment penalty.
- Easy online application and approval process with an instant credit decision.
- Interest may be tax deductible.
- You can align repayment of your Graduate PLUS loans with your Stafford loans.
- Many lenders offer borrower benefits on Graduate PLUS loans that can save you money while you are in school and throughout repayment.
Loan limits
You may borrow up to the full cost of your education, less other aid received.
Interest rate
The Graduate PLUS interest rate is fixed at 8.5%.
Fees
There is a 3% origination fee charged by the federal government. Up to a 1% federal default fee is also charged. There are lenders and guarantors that pay all or a portion of the default fee for loans guaranteed July 1, 2006-June 30, 2007.
Repayment
There is no grace period. Payments begin 60 days after the loan is fully disbursed. Under circumstances, graduate or professional student can receive an in-school deferment for pursuing a course of study at least half-time. Student must contact their lender to request a deferment. Interest continues to accrue during periods of deferment and forbearance.
Legal
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You are responsible for all interest that accrues on the Graduate PLUS loan. Unpaid interest will be capitalized (added to the loan principal) and you will therefore pay interest on a higher amount.
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Repayment on PLUS loans begins within 60 days after the final disbursement of the loan. Graduate PLUS loans, for borrowers who are certified by their school to be attending at least half time, will be placed into in-school deferment. No payments are required during in-school deferment.
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Compare Private Loans vs. Federal Graduate PLUS Loans
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Federal Graduate PLUS
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Private/Alternative
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Borrower
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Loan is made to you (the graduate/professional student), an endorser may be required
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Loan is made to you; however, a creditworthy co-borrower may be required.
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Credit Requirements
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Loan limits
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Cost of education minus aid
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Varies by program of study
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Fees
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Required 3% origination fee
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0%
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Interest Rate
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Federal PLUS interest rate is fixed at 8.5%
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Variable interest rate based on LIBOR, up to a maximum of 18% (the rate may change quarterly). May be based on your credit and/or co-borrower
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Federal Consolidation
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Eligible for Federal Consolidation programs
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Not eligible for Federal Consolidation programs
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Deferment/Forbearance Options
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Federal deferment and forbearance options exist
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Forbearance options may be available and are generally less flexible than Federal loan deferments
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Repayment Options
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Up to 25 years, standard principal and interest, interest only, graduated and extended repayment options
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Up to 20 years, options for interest only during early years of repayment
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Death/Disability
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PLUS loan can be discharged upon death of borrower. Loan can also be discharged if a borrower becomes totally and permanently disabled
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Most private loans* are NOT insured against death or disability)
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ADDITIONAL CONSIDERATIONS FOR YOU:
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