GradPLUS Loans
When it comes to financial aid, graduate schools tend to behave differently from undergraduate programs. Graduate schools feel less obligated to provide grants and other forms of aid other than loans. Even after maximizing low-interest Stafford Loans, graduate students often have significant gaps between what they can afford and the cost of the program. Enter Graduate PLUS Loans!
Graduate PLUS Loans are federal student loans for graduate or professional program students that have a fixed interest rate (7.9%) and higher borrowing limits than other federal loans.
How Much Can You Borrow?
You can borrow up to the cost of attendance minus any financial aid. Suppose a grad student was enrolled in a program that cost $52,000 and he or she received a fellowship along with subsidized and unsubsidized Stafford Loans totaling $34,000. The student would then be eligible for a Graduate/Professional PLUS Loan totaling $18,000.
Key Facts about GradPLUS Loans
- Students should borrow the full amount available through the federal Stafford Loan program, which offers lower interest rates, before using Graduate PLUS Loans.
- A simple credit check is required for Graduate PLUS Loans, but only for adverse credit history (bankruptcy, default on a previous federal student loan, etc.) - not for a particular credit score.
- Graduate PLUS Loans are eligible for consolidation after the graduate program ends if the student wishes to combine all of the loans into a single loan.
How to Apply
- Complete a FAFSA.
- Review your financial aid award. Take the school's cost of attendance and subtract all financial aid, including the maximum eligibility for Stafford Loans. The remainder is your total eligibility for a Grad PLUS Loan for that year.
- Apply online or contact your school's financial aid office to apply for a Graduate PLUS Loan.
- The school will verify your eligibility for the loan and work with you to complete the necessary paperwork.
Getting a Graduate PLUS Loan is a fairly easy and common way of financing your graduate education. Clearly, your focus is to do as well as you can during school in order to be a very desirable new hire for any organization after graduation. So don't let the jaw-dropping cost of grad school stop you from attending. Be smart about your college financing options, go to the place of your dreams, study hard, get that job you wanted, and you should find that the investment has paid off!
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Federal Loan Information
All colleges participate in the Direct Lending program, which means a student enrolled at that school receives their federal student loans (including Stafford, PLUS and GradPLUS loans) directly from the school instead of from a lender.
