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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.

Graduate Student Loans – Loan Programs & Lenders To Use

August 27, 2011

Graduate Student Loans

If you are looking for information on graduate student loans, that means you have at made it pretty far in your schooling. so first off, congratulations! Although your potential for income and better jobs increases after your completion of graduate school, it isn’t going to be cheap as you probably already know, which is what makes a lot of people decide against going back to school. But don’t let that be you as graduate student loans can be lend you the helping hand you need when it comes to getting your graduate degree. Below will be a detailed overview of the multiple loan lenders and programs that you can use to obtain these graduate student loans.

graduate student loans

Graduate Student Loans – Federal Programs to Use

First off, just like other levels of schooling loans, there are two options that you can use, federal and private. Federal will yeild the lowest interest rates as as well as other benefits, although private graduate loans do hold their own especially when you can get enough money with federal loans as well as they are usually more flexible when it comes to repayment. Being that you may need both, the information below will offer you with both federal options and private organizations who offer graduate student loans.


Stafford Graduate Student Loans:

  • This graduate student loans option has two different loan methods, subsidized which is a financial need based loan, offers a fixed interest rate as low as 4.5 percent, you don’t have to pay a cent on your loans until you are completely finished with your schooling, and your credit score doesn’t factor into your acceptance as well as you don’t have to pay interest while in school as the government pays it for you, and you don’t have to pay it back. The next options for their graduate student loans program is their subsidized loan which offers benefits like a fixed interest rate as low as 6.8 percent or less, you can borrow up to 20,500 dollars each year for tuition and school costs, and do not have to pay in school. The drawback to the subsidized student loan is that you will be charged with interest the day you take out the loan.

Grad PLUS Graduate Student loans

  • Grad PLUS is another federal program who offers graduate student loans. They offer a fixed interest rate of 7.9, you don’t have to pay monthly payments until shcool has concluded, can be obtained by either having a good credit score or prviding a cosigner who has a good credit score, and best of all your payment are often considered tax deductable.

Graduate Student Loans – Private Lenders

Now that you know two great federal graduate student loans methods, you can also consider using private lenders as well. Here are 2 accredited and highly reputable private lenders who offer graduate student loans.

Sallie Mae Graduate Student Loans

  • Sallie Mae is an excellent lender who provides you with the chance to get money for grad school. They offer their eligible applicants with many benefits like minimal fees for service, low interest rates which range from 2.05 percent to 10.05 percent, anywhere between 15 and 30 years for you to pay back your loan, and you get a 6 month grace period with them as well.
  • Chase Bank – This national bank is another great resource for getting graduate student loans. With Chase Bank you will enjoy no activation fees, you can borrow up to the cost of your attendance or however much is needed to suffice what your other financial aid resources aren’t supplying and they offer consolidation services if you ever need it in the future.