Graduate students have a new federal loan option to assist them with the costs of a graduate education, the Graduate PLUS loan. This loan allows graduate students to borrow funds up to the Cost of Attendance less their other financial aid and resources, such as scholarships, teaching assistantships, assistant instructorships and fellowships (if applicable).
Deferment |
Payment is deferred while the student is enrolled for at least half-time attendance. |
Interest Rate |
8.5% fixed |
Interest Subsidy |
None. This loan is unsubsidized. The borrower is responsible for all interest that accrues. Interest can be capitalized. |
Grace Period: |
None. The first payment is due 60 days after graduation or dropping below half-time attendance. |
Credit Worthiness |
The borrower or endorser must be credit worthy in order for the lender to approve the loan. The borrower or endorser cannot be 90 days or more delinquent on the repayment of any debt. (Lender standards may be more stringent.) |
Repayment |
Begins immediately after you:
|
Application Process |
The application process is similar to that of the Stafford loan. After accepting the Graduate PLUS and choosing a lender on the E-FAN and mailed directly to the lender. Many lenders have on-line electronic applications. Check the individual website or contact them directly for information. |