Federal Graduate PLUS Loan

Please read ALL information carefully before applying

The Higher Education Reconciliation Act (HERA) of 2005 has modified the PLUS program (formerly known as the Parent Loan for Undergraduate Students) to allow graduate and professional students to borrow under this federal loan program.

You would apply for this program in place of a private alternative loan. You can NOT process a Grad PLUS and a private alternative loan.

This program goes into effect July 1, 2006.

The legislation mandates a 3% origination fee and a 1% default fee. Our preferred lenders have agreed to pay the default fee for you, but by law are not allowed to pay the origination fee.

Our preferred lenders will be the same as for our Federal Stafford Loans:
● SunTrust
● Citibank
● National Education

This is a new program and adjustments to process and procedures may be necessary as we receive further guidance from the Department Of Education

● The interest rate will be a fixed rate of 8.5%.
● You must file a FAFSA and be awarded the Federal Stafford Loan before you may borrow under the Grad PLUS loan program.
● 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 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.

With the Grad 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 06/ Spring 07 semesters   $44,540
Minus federal stafford loans                                              ($18,500)
Minus scholarship                                                                ($ 6,000)

                                                 Grad PLUS loan maximum $20,040

● The Grad PLUS loan will be certified for the same two semester loan period as your Federal Stafford Loan.

● Unlike the private alternative loans the GRAD PLUS loan funds are disbursed in two disbursements. Half in each semester.

● The Grad PLUS loan is subject to a return of funds calculation if you withdraw during the semester.

● The Grad PLUS can be included in consolidation after you graduate (unlike private loans)

Click HERE to apply for the Grad Plus Loan