Grad PLUS Loan Overview

Until the summer of 2006, the PLUS loan (Parent Loan for Undergraduate Students) was only available to parents of dependent undergraduate students. That changes as of July 1, 2006 ; however, and now Graduate and Professional students also qualify.

Grad PLUS Loan Eligibility Guidelines

It is important to be aware eligibility guidelines to apply for the Graduate PLUS loan:

• Must be a graduate/professional student enrolled at least half-time in a matriculated program
• Must apply for maximum eligibility in subsidized and unsubsidized Stafford loan first before the PLUS loan will be awarded
• Must complete a FAFSA (Free Application for Federal Student Aid)

Additionally, borrowers must be able to pass a basic credit check. Problems on your credit record such as the items listed below could impact the ability to qualify for the Graduate PLUS loan.

• Debt discharged in bankruptcy during the last 5 years
• 90 days or more delinquent on any debt repayment
• Default, tax lien, foreclosure, wage garnishment or repossession during the last 5 years

It should be noted that parents of Graduate students are not eligible to borrow with this loan.

Students may borrow the difference between the total cost of their education, which includes fees, books and personal expenses, less any financial aid they receive.

Grad PLUS Loan Repayment Info

It is important to understand that repayment for the Graduate PLUS loan will begin 60 days after the last disbursement of the loan period. The loan can be repaid back over a maximum 10 year repayment period. There is a minimum monthly payment of $50.00. Students who are enrolled at least half-time are eligible to defer payments.

The interest rate on the Graduate PLUS loan is fixed.

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