Federal Graduate Plus Loan

Graduate PLUS loans are low interest loans offered by the federal government. The lender is the U.S. Department of Education rather than a bank or other financial institution. You must be enrolled at least half time (7 hours Fall or Spring; 4 hours Summer) to be eligible to participate in this loan program.

Interest is charge from the time the loan is disbursed.

The interest rate for the Graduate PLUS is a fixed rate of 7.21%

A 4.292% origination fee is mandated by the federal government.

  • A credit check is required to determine that “the applicant does not have an adverse credit history.”
  • If you have an adverse credit history, you can be approved with an endorser that does not have an adverse credit history.
  • The repayment period begins on the date of the disbursement.
  • The first payment is due 60 days after the disbursement.
  • You may receive a deferment while you are enrolled at least half-time.
  • Once you graduate, withdraw or drop below half-time enrollment, there is no grace period and payments will become due in 60 days.

With the Graduate PLUS loan you may borrow up to your total cost of attendance minus any other financial assistance.

Example:

Estimated cost of attendance (which includes tuition, room and board, transportation, etc)

Full-time student in the Fall 2014 semester $32,530

Minus Federal Stafford Loans ……………………………..($10,250)
Minus Scholarship………………………………………………($5,000)
Grad PLUS Loan maximum……………………………$17,280

You should only apply for a Grad PLUS loans AFTER receiving your award notice for the Federal Direct Subsidized and Unsubsidized loans.

If you plan on trying to acquire a Federal Work-Study position, you should not apply for the maximum amount in the Grad PLUS loan.

Since the federal government will do a credit check when you apply for a Graduate PLUS loan, you should review your credit history before applying. Once every 12 months you can request a free copy of your credit history from AnnualCreditReport.com

To apply and complete a promissory note go to https://studentloans.gov