Graduate PLUS Student Loan

The Graduate PLUS student loan is a product of the U.S. Department of Education's Federal Direct Loan Program (FDLP). Essentially, it is meant to be a supplement to Stafford and/or Perkins federal student loans and provide a low-cost option to borrow the remainder of your educational expenses.

Grad PLUS student loans are the most widely used, low-cost education loan available for graduate students from the United States federal government and they are a great way for you to secure the additional financial aid you need to meet your financial needs.

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Also, Grad PLUS loans are not based on financial need or income, so you cannot be turned down for making too much or too little money. The only thing you need to qualify for a Grad PLUS loan is at least average credit and a clean credit history.

Grad PLUS Interest Rates

For the 2010-2011 academic year, the Grad PLUS interest rate set by the Department of Education is 7.9% APR. This is a fixed interest rate, meaning it will never change after origination unless you perform a federal loan consolidation in the future.

Grad PLUS Loan Fees

Currently, the Federal Direct Loan Program (FDLP) charges a 4% origination fee for all new PLUS loans created after July 1, 2010. This will be added to the loan repayment amount and is not required immediately upon signing the Master Promissory Note.

Grad PLUS Loan Eligibility

The federal Graduate PLUS student loan is available to you if you are a graduate student enrolled at least half time at a U.S. college, university or other eligible school. You may borrow up to the total cost of your education including tuition, books, housing (on or off campus), utilities, food, transportation, computers, travel and lab fees, minus any other financial aid you have already received. You must first maximize your subsidized Stafford loan requirements before the amount of a Grad PLUS loan can be determined.

Here is a specific list of requirements:

• Are enrolled in graduate studies program at least half-time at a U.S. college, university or other eligible school.
• A citizen of the United States of America or eligible resident, non-citizen.
• Have completed the Free Application for Federal Student Aid (FAFSA) which is available at www.fafsa.ed.gov.
• Have applied for your maximum annual subsidized Stafford loan amount which is determined your school based on the results from your FAFSA.
• Meet federal minimum standards of creditworthiness.