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FEDERAL
GRADPLUS LOANS from Studentloans.com
For
graduate students seeking an affordable financing option,
Studentloans.com offers an extremely attractive solution.
With a GradPLUS loan from Studentloans.com you can cover up
to 100% of the remaining costs of your education after meeting
your maximum annual subsidized Stafford loan amount. GradPLUS
loans are a smart financial strategy for graduate students.
GradPLUS loans are not based on financial need or income,
so you cannot be turned down for making too much or too little
money. So what are you waiting for? Start now and get a GradPLUS
loan through Studentloans.com. |
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GradPLUS
Student loans are the most widely used, low-cost education
loan available for graduate students from the United States
federal government, and GradPLUS loans are a great way for
you to secure the additional financial aid you need in order
to meet your financial needs. |
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| Rates
& Fees |
| Interest rates |
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As of July 1, 2006 the GradPLUS interest
rate set by the US Federal government is 8.5% |
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| Fees |
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Federal GradPLUS Loans are subject to a 3% origination
fee which is deducted from your loan amount.
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Fees are taken out of the proceeds
of the loan, so there is no up-front money required
to obtain the loan. |
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A Federal Default Fee of 1% is assessed by the guarantor
of the loan |
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| BACK
TO TOP |
| Eligibility |
| The federal GradPLUS
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 GradPLUS
loan can be determined. |
| The GradPLUS Loan
is available to you if you are: |
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Are enrolled in graduate studies program
at least half-time at a U.S. college, university or other
eligible school |
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A citizen of the United States of America or eligible
resident, non-citizen |
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Have completed the Free Application for Federal Student
Aid (FAFSA) which is available at www.fafsa.ed.gov
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Have applied for your maximum
annual subsidized Stafford loan amount which is determined
your school based on the results from your FAFSA and |
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Meet federal minimum standards
of creditworthiness |
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TO TOP |
| Loan
Terms |
| GradPLUS loans are
simple-interest loans which are unlike credit cards, home
equity loans and other loans that may compound interest.
Additionally, |
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The standard repayment term is usually
10 years |
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Repayment begins 60 days after the final disbursement
is made |
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The interest may be tax deductible |
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The GradPLUS loan may be repaid at any time without
penalty |
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If you borrow more than one eligible federal loan, you
can consolidate your GradPLUS loans into one consolidation
loan and benefit from one convenient monthly payment |
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Your loan payments may be reduced or deferred in times
of economic hardship |
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The loan is forgiven in the event of the death or total
disability of the parent or student |
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| Disbursement |
Studentloans.com will send your funds
to your school. In most cases, your loan will be disbursed
in 2 installments – i.e. 2 separate payments.
Neither of the installments will be greater than half
of the amount of the loan. Funds from a GradPLUS loan
must first be used for fees that are owed to your school
such as tuition, fees, room and board. If funds remain
after these costs have been paid, you will receive the
remaining balance from your school. You can also request
that the school hold any unused funds for a later time
during your enrollment.
Some schools will disburse the funds after 30 days
of enrollment for first-time borrowers or first-year
students. This provides the student an opportunity to
withdraw from classes before any remaining funds are
disbursed to the school.
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| Canceling a GradPLUS
Loan |
| You may cancel either a portion or all of
a federal GradPLUS loan if you inform your school within
14 days of the date that the loan is scheduled to be deposited
with your school. If you receive from your school any
funds that you wish to cancel, you can refuse the funds
by not signing and endorsing the check and returning it
to your school. |
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| Borrowing Limits |
| Through a GradPLUS
Loan, Graduate students can borrow up to 100% of the estimated
total cost of education, minus any financial aid awarded
to the student. The estimated total cost of education
may include tuition, books, housing (on or off campus),
food, utilities, computers, lab fees and travel expenses. |
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TO TOP |
| How
to Apply |
| In
order to meet your needs, Studentloans.com provides a
variety of flexible application options. Since you are
likely to be viewing this page online (unless it has been
printed for your viewing pleasure during an offline session)
the fastest and easiest way to apply is online, right
now. To apply online now, just click on |
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| You
can also download
and print a printer-friendly application. |
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TO TOP |
| Repayment |
Repayment of principal and
interest on your GradPLUS loan can begin 30 days after
disbursement. GradPLUS borrowers are eligible for automatic
deferment and will not be required to make payments
while they remain enrolled at least half-time. Interest
only payments can be made during school, and interest
can be deferred while in school. If interest is deferred
while in school, repayment begins 60 days after you
complete school or drop below half-time status.
To estimate your anticipated cost of living once you
leave school, you may want to view the Budget
Calculator provided by Studentloans.com which
provides an interactive, intuitive worksheet to prepare
a potential budget. Starting with your anticipated income
and subtracting income tax, you can forecast your monthly
cost of housing, utilities, food, travel, transportation,
student loans and other miscellaneous expenses.
Another useful tool to assist you in preparation for
repayment of your student loans is the Debt
/ Salary Wizard from Studentloans.com. The Debt
/ Salary wizard from Studentloans.com will help you
determine your required salary in order to meet your
monthly financial obligations.
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| Deferment
& Forbearance |
| Under certain circumstances,
you may find it difficult to repay your student loans.
Such circumstances may include unemployment, economic
hardship, military service, a disability, or going to
college on a part-time basis. If any of these situations
prevent you from making payments, you may be eligible
for loan deferment.
Deferment provides a period of time in which federal
GradPLUS Loan payments can be reduced or suspended for
a determined amount of time. During deferment, a borrower
is not required to pay down the principal on GradPLUS
Loans. It is important to realize that during deferment,
interest payments are still required.
Studentloans.com is ready to help you with these deferment
situations, and the forms to request deferment can be
obtained by downloading, printing and submitting any of
the following:
If you are temporarily unable to meet your repayment
schedule and cannot qualify for deferment, you can apply
to receive forbearance on your loan for a period of
time. Forbearance allows you to postpone or reduce loan
payments. Unlike deferment, interest will always continue
to accrue during forbearance. Effective July 1, 2006,
a written request for forbearance is not required, but
Studentloans.com may require you to provide documentation
to support your request. Studentloans.com will determine
if a borrower is eligible for forbearance.
Deferment and forbearance are not automatic, and payments
should continue until a request for deferment or forbearance
is granted. If payments on student loans are not made
on time, default may occur.
Please contact one of our student loans specialists
at 800-620-9852 with any questions about deferment or
forbearance
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TO TOP |
| Default |
| If you do not repay
your student loan on time, it will become delinquent and
can possibly default. This has serious consequences and
can be very damaging to your credit rating. Since defaulted
student loans are reported to all national credit bureaus,
you may experience some of the following consequences:
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The entire unpaid
amount of your student loan, including interest, will
become immediately due and payable, |
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You may be liable for additional
collection costs, |
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You may lose future eligibility
for federal or state financial aid and/or student loans,
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The references you supplied
on your loan application may be contacted in effort to
locate you, |
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You may lose deferment
and forbearance options, |
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Your federal and state tax refunds
may be withheld and applied to your loan balance, |
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Your Illinois professional license
renewal may be denied, |
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Your employer may withhold part
of your salary for payment of your loan, |
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Your loan may be referred to
a collection agency, |
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Legal action may be taken against
you and |
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You will still have to repay
your loan! |
To help you manage
your student loan debt, and to repay your loan, stay
in touch with Studentloans.com. You should also read
any mail you receive regarding your loan, keep records
in a safe place, stay current with your payments, and
write your loan account number on all correspondence
with Studentloans.com and its servicing authorities.
You can access your account
at any time to determine loan balance or make a
payment online.
If you are unable to make your monthly payments, contact
Studentloans.com immediately to avoid default by considering
your repayment options.
Depending upon your circumstances, you may qualify for
loan deferment or forbearance.
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TO TOP |
| Repayment
Options |
One of the benefits of a
federal GradPLUS loan is the variety of repayment options
available. Most GradPLUS Loans are set up on a standard
repayment plan with monthly payments that remain the
same throughout the repayment period. However, other
plans are available that may make your payments more
manageable.
Studentloans.com provides several calculators to assist
in determining your financial exposure. You may want
to see the Debt / Salary
Wizard, the Budget
Calculator or the Consolidation
Loan Calculator to determine your best options.
Remember that changes in interest rates and federal
regulations that govern the loan programs can affect
your payments.
Standard Repayment Options
This option allows you to make monthly payments of principal
and interest, excluding periods of deferment and forbearance.
Depending on the amount borrowed, $50 is the minimum
monthly payment. If you do not choose a repayment plan,
the Standard Repayment Plan will be used.
Graduated Repayment Option
Borrowers choosing this option can start with reduced
payments and gradually increase the payments over time.
A graduated Repayment plan sets your payments lower
at the beginning of your repayment period and then increases
over time. All payments must at least equal the interest
accrued on the loan between scheduled payments.
The advantage of this repayment plan is that it allows
you have a lower payment when your income might be lower
while you change or start a new career. The disadvantage
of this plan is that you will pay more interest over
the life of the loan than you would under a Standard
Repayment plan.
You are allowed to change your repayment plan once
a year. You must request a change in your repayment
plan. Contact your servicer directly through our Account
Access feature about a Graduated Repayment plan.
Income Sensitive Repayment Option
Monthly payments with this option are based upon a percentage
of your gross monthly income. An Income Sensitive Repayment
plan sets the monthly payment based on your annual income
and the balance of your loan. Payments will be adjusted
up or down as your income rises or falls. All payments
must at least equal the interest accrued on the loan
between scheduled payments.
The advantage of this repayment plan is that it allows
you to tie your payments to the income that you are
earning. If your income goes up, your payments go up.
If your income goes down, your payments go down. A disadvantage
of this plan can be that you may pay more interest over
the life of the loan than you would with a Standard
Repayment plan. You may be required to provide proof
of income (a tax return) on an annual basis. You are
allowed to change your repayment plan once a year. You
must request a change in your repayment plan. If you
do not choose a repayment plan, the Standard Repayment
Plan will be used. Contact your servicer directly through
our Account Access
feature about an Income Sensitive Repayment plan.
| Amount Borrowed |
Monthly Gross Income |
% of Income |
Required Monthly Payment |
| $10,000 |
$1,000 |
4% |
$57 |
| $20,000 |
$2,000 |
4% |
$113 |
Early Payoff Option
Paying off your GradPLUS Student loan in full carries
no pre-payment penalties and keeps interest cost to
a minimum.
To minimize your monthly student loan expenses, you
may want to consolidate your existing student loans.
Consolidating your student loans allows you to bundle
the principal of existing federal or private loans (principal
from federal and private loans cannot be combined, however),
and extend the years required for repayment.
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