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.
Loan Limits:
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. The
student borrower must be credit-worthy.
Repayment:
Repayment begins within 60 days after the loan is fully
disbursed, while the student is still enrolled. The borrower
has up to 10 years to repay the loan. There is a $50 minimum
monthly payment. However, as long as the borrower remains enrolled
at least halftime, repayment may be deferred.
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