Federal PLUS Loan for Graduate & Professional Students (Grad PLUS)

As of July 1, 2007, graduate and professional students will be eligible to apply for the new Federal PLUS loan for Graduate & Professional Students.

Listed below is some of the information regarding this new Grad PLUS loan program. Following this information is a link to apply for the Grad PLUS loan. Compare some of the benefits and features of the Stafford, Grad PLUS, and Private loan programs.

Loan Features and Benefits

• Interest rate is fixed at 8.5%.
• There are no annual or aggregate loan limits. You may borrow the cost of attendance less any financial aid received.
• Payments may be automatically deferred while you're in school.
• Repayment may be aligned with the grace period on any Stafford loan.
• Lower your interest rate from 8.5% to 7% through several interest rate reductions.

Loan Eligibility and Requirements

• Graduate and professional students who are enrolled at least half-time are eligible.
• You will need to fill out the Free Application for Federal Student Aid (FAFSA). You should exhaust your Federal Stafford Loan options prior to applying for the GradPLUS.
• A credit check is required. If you have adverse credit, you can resolve the credit issues or secure an endorser for the loan.
• Because the GradPLUS is unsubsidized, you are responsible for interest that accrues on the loan during all periods.

Fees and Repayment Options

• Fees vary by lender.
• The following repayment options are available to GradPLUS borrowers: (vary by lender)
  • Regular payments of principal and interest
  • Reduced payments that may be as low as interest-only for the first 2, 3 or 4 years
  • Income-sensitive repayment
  • Extended repayment of up to 25 years for eligible borrowers
• Payments may be automatically deferred while you're in school.
• Repayment may be aligned with the grace period on any Stafford loan.
• The GradPLUS loan may be canceled due to death or disability.

Apply for Grad PLUS Loan