Grad PLUS Loan
About Grad PLUS Loan
A Grad PLUS Loan is a fixed, low interest rate federal student loan issued to graduate students. These loans are not need-based, which means any graduate student can apply for one, with approval contingent on either the borrower's or his/her cosigner's credit score.
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Benefits of Grad PLUS Loans
Grad PLUS Loans are usually used after students have exhausted all other federal aid options, as well as all of their scholarship and grant opportunities. Disbursed by the Department of Education, a Grad PLUS loan offers graduate students a fixed interest rate, supported by a high credit approval rate, and an efficient application process. Graduate plus loans also offer flexible repayment options, and the option to defer payments while the student is enrolled at least half time. Another benefit is that Grad PLUS student loans are federal loans, so they can easily be consolidated with other federal loans. For students, this will make repaying their loan much easier, as they will just have one payment and one loan to be concerned with.
Grad PLUS Loan - Interest Rate and Borrowing Limits
The maximum Graduate PLUS loan amount a student can borrow is the cost of attendance - minus any other federal aid received, but there is a 4% origination fee, taken out when the loan is disbursed. The loan has a current fixed interest rate of 7.9%.
Eligibility criteria for a Grad PLUS Loan
Grad PLUS student loans are available to all students who meet the eligibility criteria for financial aid. Students can easily apply for a Grad PLUS loan through the Free Application for Federal Student Aid (FAFSA). The loan is awarded to students who are already enrolled in a graduate program and pass their credit check. For applicants who do not clear the credit requirement, a cosigner might be required for loan approval.