Graduate PLUS is a type of
federal
Federal or foederal (archaic) may refer to:
Politics
General
*Federal monarchy, a federation of monarchies
*Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...
student aid, in the form of
student loan
A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest r ...
s, which is available to
graduate and professional students. Similar to the
Parent PLUS loan for parents of dependent
undergraduate student
Undergraduate education is education conducted after secondary education and before postgraduate education. It typically includes all postsecondary programs up to the level of a bachelor's degree. For example, in the United States, an entry- ...
s, the Graduate PLUS loan is an
unsubsidized federally guaranteed education loan with no annual or aggregate limits. It has no
grace period
A grace period is a period immediately after the deadline for an obligation during which a late fee, or other action that would have been taken as a result of failing to meet the deadline, is waived provided that the obligation is satisfied durin ...
and it goes into repayment as soon as the funds are disbursed to the borrower. It has the same
deferment and
forbearance
Forbearance, in the context of a mortgage process, is a special agreement between the lender and the borrower to delay a foreclosure. The literal meaning of forbearance is "holding back". This is also referred to as mortgage moratorium.
Applica ...
options as the federal
Stafford loan program. As such, graduate and professional students can postpone repayment using in-school deferment while enrolled at least half-time in a degree or certificate program of study.
At present, interest rates on
Federal Family Education Loan Program
The Federal Family Education Loan (FFEL) Program was a system of private student loans which were subsidized and guaranteed by the United States federal government. The program issued loans from 1965 until it was ended in 2010. Similar loans a ...
(FFELP) Federal PLUS loans are fixed at 6.84%. Many lenders offer borrower benefits to reduce this interest rate during repayment. During any period of deferment or forbearance, interest can accrue and be
capitalized to the principal loan balance at the end of the deferment or forbearance period if it is not paid by the borrower as it accrues. There is also a 4.272%
origination fee
An origination fee is a payment associated with the establishment of an account with a bank, broker or other company providing services handling the processing associated with taking out a loan.
An origination fee is typically a set amount for any ...
attached to the loan that, due to regulations, cannot be paid by the lender on the borrower's behalf.
[https://studentaid.ed.gov/sa/types/loans/plus]
Eligibility
Eligibility for PLUS loans require the applicant to
:''(1) be a U.S. citizen/national or eligible non-citizen with a valid Social Security number,''
:''(2) pass a credit review and not have adverse credit history as defined by regulation (see credit criteria below), and''
:''(3) not be in default on any federal education loan or owe a refund on a federal education grant.''
To get a
PLUS loan
A PLUS Loan is a student loan, which is part of the Federal Direct Student Loan Program, offered to parents of students enrolled at least half time, or graduate and professional students, at participating and eligible post-secondary institutions ...
, the applicant cannot have adverse credit based on the review of at least one
credit report
:''This article deals with the general concept of the term credit history. For detailed information about the same topic in the United States, see Credit score in the United States.''
A credit history is a record of a borrower's responsible repa ...
from a national credit reporting agency. Lack of a credit history or insufficient credit history is not considered adverse credit. Applicants with adverse credit can provide an endorser (cosigner) who does not have adverse credit to get a PLUS loan.
The federal Graduate PLUS loan is a federally guaranteed loan and must be certified by one's school of attendance.
References
{{reflist
External links
Federal Student Financial Aid website
Student loans in the United States