Graduate PLUS Loans Major Overview

September 5, 2011

Graduate PLUS Loans

Graduate PLUS Loans are federal student loans given out by the Department of Education, and are set up specifically for graduate as well as professional students to obtain the money they needed afford their college degree. Also called the GradPLUS Loan, this loan allows a student to borrow up to the cost of their education as well as other aspects of your school life like supplies, room and board books and more, minus whatever else you are receiving in the form of financial aid.

Graduate PLUS Loans

The total amount of money you can get is decided by your specific school, and is determined off the information that you fill out on the Free Application for Federal Student Aid, whichi the FAFSA is a mandatory requirement if you want to recieve a Graduate PLUS Loans, as well as will possibly qualify you for receiving other aid like scholarships and grants.

Graduate PLUS Loans – Benefits & Terms

The Graduate PLUS Loans offer many benefits to their borrowers which are all applicable if the student attends school on at least a half time basis, some of which include:

  • A fixed interest reate at what is currently 7.9 percent.
  • A standard repayment period of 10 years, and a possible extended repayment program of up to 25 year repayment, making montly payments much more affordable.
  • Monthly loan payments are more often than not considered tax deducatable.
  • You do not have to have a cosigner to be accepted.
  • You do not have to pay loan payments until after school is finished if you are enrolled in at least a half time schedule.
  • There is a 4 percent activation/origination fee which is taken when the loan is dispersed.

Other Graduate PLUS Loans Details

  • You funds go directly to the school you are attending. All of your expenses will be paid first, then if there is anything left from the loan, you will receieve a check.
  • You must not have a negative credit history to obtain Graduate PLUS Loans. If you do, you will need to provide a cosigner who has a positive credit history.
  • Loans are unsubsidized meaining that they do not require you to show your financial need in order to recieve a Graduate PLUS Loan.
  • Payment is to start 60 days after the conclusion of your schooling, or 45 days after student stops attending school on a half time basis.

Do You Have A Good Credit Score?

If by chance you have a good credit score or can find a cosigner that has one, the best option would be to apply for different graduate loans first before you try for Grad PLUS Loans. This is stated as the interest rate is higher than most if not all federal loan programs. But overall, federal loans should be your first choice when it comes to money for grad school as they have lower interest rates, more lenient terms when it comes to reayment as well as consolidation and bankruptcy options. If after your apply for Graduate PLUS Loans or federal loans in general, and still aren’t receiving enough mony, then use private loans as a last resort.

Category: Federal PLUS Loans

2 thoughts on “Graduate PLUS Loans Major Overview

    • Hey sorry it took so long to get back to you, I was on vacation. Yes it’s cool if you reference it, thanks for the link back as well. Peace

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