A new federal loan program, the GradPLUS Loan is a low interest, federally backed student loan guaranteed by the U.S. Government. Like its undergraduate counterpart, the Grad PLUS Loan can be used to pay for the total cost of education less any aid you've already been awarded. Also, like the undergraduate version, eligibility for the Graduate PLUS Loan is largely dependent on the borrower's credit rating and history.

• A Federal Graduate PLUS Loan allows graduate students to borrow the total cost of graduate education including tuition, room and board, supplies, lab expenses, and travel, less any other aid.
• These student loans are non-need based. PLUS Loans are based on your credit history.
• The FAFSA Free Financial Aid Application is required.
• Interest is fixed, locked in at 8.5%.
• Graduate PLUS Loans require no collateral (like other type of loans - including home equity)
• Interest may be tax deductible.
• GradPLUS loans can be deferred while you are in school.

    How much can I borrow?

     The yearly limit on a Graduate PLUS Loan is equal to your cost of attendance* minus any other financial aid you receive. For example, if your cost of attendance* is $6,000 and you receive $4,000 in other financial aid, you could borrow up to but no more than $2,000.

    Do they get the money or do I?

     Your lender (for a FFEL Graduate PLUS Student Loan) will send the loan funds to your school. Your school might require you to endorse a disbursement check and send it back to the school. In most cases, the loan will be disbursed in at least two installments, and no installment will be greater than half the loan amount. The funds will first be applied to your tuition, fees, room and board, and other school charges. If any loan funds remain, you will receive the amount as a check or in cash, unless you authorize the amount to be released to your school account. Any remaining loan funds must be used for your education expenses.

    What kind of credit do I need?

     A qualified Graduate PLUS Loan borrower does not have an adverse credit history (defined in regulations as being 90 days or more delinquent on any debt, or having a credit report that shows default, discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the five years preceding the date of the credit report). Note that Graduate and Professional Student PLUS loans do not use any kind of a debt-to-income ratio or FICO score, unlike private education loans.

    Do I need a co-signer?

     You might need a co-signer if your credit is insufficient. Graduate students with excellent credit should not need a co-signer to apply for the loan.

    Can I cancel the loan if I change my mind, even if I have signed the promissory note agreeing to the loan's terms?

     Yes. Your school must notify you in writing whenever it credits your account with Graduate PLUS Loan funds. This notification must be sent to you no earlier than 30 days before, and no later than 30 days after, the school credits your account. You may cancel all or a portion of their loan if you inform your school within 14 days after the date your school sends this notice, or by the first day of the payment period, whichever is later. (Your school can tell you the first day of your payment period.) If you receive Graduate PLUS Loan funds directly by check, you may refuse the funds by not endorsing the check.

    What's the interest rate on GradPLUS Loans?

     GradPLUS Loan rates are fixed at 8.5%. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.