Direct Graduate PLUS Loans

The Direct Graduate PLUS Loan program is a low interest federally subsidized student loan, guaranteed by the US Government. Like its undergraduate counterpart, the Grad PLUS Loan can be used to pay for the total cost of education less any aid you've already been awarded. Also, like the undergraduate Parent PLUS Loan, eligibility for the Direct PLUS Loan for Graduate students is largely dependent on the borrower's credit rating and history, as opposed to the purely financial need-based Direct Stafford Loan for Graduate Students.

• A Direct Graduate PLUS Loan allows graduate students to borrow the total cost of graduate education including tuition, room and board, supplies, lab expenses, and travel, less any other aid.
• PLUS Loans take credit history into consideration
• The Free Application for Financial Aid is required.
• Interest is fixed, locked in at 7.9%.
• Direct PLUS Loan for Graduate students require no collateral
• Interest may be tax deductible.
• Grad PLUS loans can be deferred while you are in school.

Other Resources

• Graduate students should consider Graduate PLUS Student Loan Consolidation as a way to lower their monthly payment.
• Also consider Graduate Stafford Loans and Private Graduate Student Loans
• Don't forget to search for College Scholarships

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Direct Graduate PLUS Loan Frequently Asked Questions

How much can I borrow?

The yearly limit on a Graduate PLUS Loan is equal to your cost of attendance* minus any other financial aid you receive. For example, if your cost of attendance* is $6,000 and you receive $4,000 in other financial aid, you could borrow up to - but no more than - $2,000.

How is the money disbursed to me after I am approved?

Your lender will send the loan funds directly to your school. In most cases, your loan will be disbursed in at least two installments, and no installment will be greater than half the loan amount. The funds will first be applied to your tuition, fees, room and board, and other school charges. If any loan funds remain, you will receive the amount as a check or in cash, unless you authorize the amount to be released to your school account. Any remaining loan funds must be used for your education expenses.

What kind of credit do I need?

A qualified Graduate PLUS Loan borrower does not have an adverse credit history (defined in regulations as being 90 days or more delinquent on any debt, or having a credit report that shows default, discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the five years preceding the date of the credit report). Note that Graduate and Professional Student PLUS loans do not use any kind of a debt-to-income ratio or FICO® score, unlike private education loans.

Do I need a co-signer?

You might need a co-signer if you have insufficient credit. Graduate students with excellent credit should not need a co-signer to apply for the loan.

Can I cancel the loan even if I have signed the master promissory note?

Yes. Your school must notify you in writing whenever it credits your account with Graduate PLUS Loan funds. This notification must be sent to you no earlier than 30 days before, and no later than 30 days after, the school credits your account. You may cancel all or a portion of their loan if you inform your school within 14 days after the date your school sends this notice, or by the first day of the payment period, whichever is later. (Your school can tell you the first day of your payment period.) If you receive Graduate PLUS Loan funds directly by check, you may refuse the funds by not endorsing the check.

What's the interest rate on a Direct PLUS Loan for Graduate students?

Graduate PLUS Loan rates are fixed at 7.9%. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.

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