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.
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.
Q:How can I apply for Grad Plus loans?
A:Grad Plus loans are disbursed by the federal government. They are need-based and are offered to students who wish to pursue graduate studies at any university. To apply for Grad Plus loans all you have to do is submit a FAFSA application.
Q:Could you explain federal direct grad plus loans?
A:Federal Direct Grad Plus loans are loans that are given to graduate or professional students and parents so that they may pay for their education expenses. The U.S. Department of Education awards Direct PLUS Loans to eligible borrowers who are inducted in schools participating in the Direct Loan Program. According to its terms and conditions, eligible borrowers of Direct PLUS Loans must not have an adverse credit history, must Bb compliant with 7.9% interest rate on the loans, and must be accepting of the maximum loan amount.