Grad PLUS Loans

For graduate and professional students
Unlike parent PLUS loan, this loan is student's name and based on the student's credit rating
Loan enters repayment as soon as it’s fully disbursed:
- Can request deferment while in school
- For loans first disbursed on or after July 1, 2008, can request deferment while in school and until six months after you graduate, withdraw, or drop below half-time enrollment
Interest accrues beginning from the date the loan is fully disbursed, though you can choose to pay it later if you are in a deferment status

If you choose to not pay the accruing interest, it will be added to the principal amount of your loan and will increase the amount you have to repay.
If you pay the interest as it accumulates, you'll repay less in the long run.

Requirements:

Complete the FAFSA (Free Application for Federal Student Aid) for the loan period
Establish eligibility for the maximum annual amounts of Federal Stafford (subsidized and unsubsidized) Loans for the period
Not have an adverse credit history

Interest rate

Loans first disbursed on or after July 1, 2006 have a fixed interest rate of 8.5 percent.
Loans first disbursed between July 1, 1998 and June 30, 2006 have a variable interest rate with a cap of 9 percent. The interest rate is adjusted each year on July 1 (your loan holder will notify you of interest rates changes annually). As of July 1, 2007, the variable rate is 8.02 percent.
If you have a loan first disbursed prior to July 1, 1998, contact your loan holder to determine the interest rate.

Loan limits

The annual maximum that may be borrowed under this program is the difference between the cost of education minus any financial aid received. There is no aggregate maximum.

Loan programs

You can borrow a Grad PLUS Loan under one of two federal student loan programs, each with the same general terms, conditions, interest rates, benefits and loan amounts.

Federal Family Education Loan (FFEL) Program: Private lenders such as banks, credit unions, and savings and loan associations make the loans. You choose your lender.
Federal Direct Student Loan Program (FDSLP): The U.S. Government makes loans through schools

Your school usually will participate in one of the programs.

Loan repayment

You have a variety of repayment options for Grad PLUS Loans. Learn more.

Deferment and forbearance

If certain special circumstances arise that make it temporarily difficult for you to make your loan payments, you may qualify for a deferment or forbearance.

Cancellation, forgiveness, and discharge

Learn more about cancellation of Grad PLUS Loans.