The purpose of a Graduate PLUS loan is to bridge the gap between the amount of financial aid the college has been able to offer you and the cost of attending college for the year (Cost of Attendance). This is a new loan and will be available for promissory notes approved on or after July 1, 2006. You must meet the following requirements to be eligible for this loan — you must:
- Be a graduate or professional student
- Complete the Free Application for Federal Student Aid (FAFSA)
- Be enrolled at least half-time in college
- Not be in default on federal loans or have an overpayment of federal grants
- Have borrowed the annual loan maximum in federal subsidized and unsubsidized loans
- Have a good credit history. The lender will do a credit check to determine your eligibility to borrow through a Graduate PLUS loan
- Sign a Master Promissory Note (MPN), a legal document that is a promise to repay the loan
The interest rate for a Graduate PLUS loan is 8.5 percent in the Federal Family Education Loan (FFEL) Program and 7.9 percent in the Federal Direct Loan Program. If you are interested to know in which loan program your college participates, contact your college financial aid office.
Scheduled monthly payments will not be lower than $50 per month and payments begin immediately after the Graduate PLUS loan is fully disbursed.
No matter which loan(s) you decide to accept, be a wise borrower and only borrow what you need to pay for your educational expenses each year. The SLOPE Calculator and the Loan Repayment Guide can help you determine this amount.