Grad
PLUS Loans
The Federal PLUS Loan for graduate/professional
students is specifically designed to enable these students
to increase their federal financial aid with an affordable
interest loan. Also, repayment on these loans differs from
Stafford loan repayment. Take a moment to understand the
following terms before you apply for this loan.
Interest Rate: The interest rate is fixed at
8.5%
Fees: a 3% origination fee and a 1% federal
default fee may be deducted from the loan amount.
Before applying for this loan, the student
must apply for and the school must determine the student's
eligibility for the maximum annual subsidized and/or unsubsidized
Federal Stafford Loan amount. However, a graduate or professional
student is not required to receive Federal Stafford Loan
funds as a condition for receiving a Federal PLUS Loan.
Graduate/professional students may borrow up to the cost
of education minus estimated financial aid. To be eligible,
the student borrower must not have adverse credit.
Repayment normally begins within 60 days after the loan
is fully disbursed.
However, Grad PLUS borrowers whose loan(s) are disbursed
on or after 7/1/2006 will automatically be placed in a deferment
status as long as they are enrolled at least half-time. Grad
PLUS borrowers whose loan(s) are disbursed on or after 7/1/2008
will also receive a 6-month deferment extension after they
graduate or drop below half-time status. The borrower has
up to 10 years to repay the loan. There is a $50 minimum
monthly payment.
Apply
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