Grad Plus Loans

[tenisghs]

<p>Can someone tell me how does Grad Plus Loans work?</p>

[tenisghs]

<p>Anyone? The interest rate (8.5%) seems a bit high.</p>

[NikkiiL]

<p>It is very similar to a Parent PLUS loan but specifically designed for Graduate students. It is credit based but somewhat lenient like the Parent PLUS. Also, not every graduate level student will qualify for the loan, as it cannot exceed COA-other aid-loans.</p>

<p>The interest rate is a bit high, when compared to Stafford Loans, but it can be a little better than some private loans since the interest rate is capped by the Federal Government.</p>

[sk8rmom]

<p>Right now the Plus loans rates of 7.9 for Direct lenders and 8.5 for FFEL schools are a bit less attractive than private student loans. That will not always be true though, and there are benefits to the Plus loans that you should consider - easier access to credit (no credit scoring/cosignor/income requirements), uniform program requirements, variety of repayment options, and the possibility of discharge in certain cases (including your own death). These may not be available to you with private loans, and some private lenders have proved to be so difficult to work with that the borrower ends up in an endless loan nightmare. Not advocating for the Plus program, just saying that sometimes it’s better to pay a little more for peace of mind down the road. I understand that Pres Obama intends to do away with the FFEL programs shortly, so perhaps only the Direct rates will apply.</p>

<p>

The terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS loans. These requirements include a determination that the applicant does not have an adverse credit history, repayment beginning on the date of the last disbursement of the loan, and a fixed interest rate of 8.5 percent in the FFEL program and 7.9 percent in the Direct Loan program. Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate/Professional PLUS loan

</p>

<p>[Student</a> Aid on the Web](<a href=“http://studentaid.ed.gov/PORTALSWebApp/students/english/PlusLoansGradProfstudents.jsp]Student”>http://studentaid.ed.gov/PORTALSWebApp/students/english/PlusLoansGradProfstudents.jsp)</p>

<p>There is more specific info on the T&C’s here, including consolidation and repayment:
<a href=“http://studentaid.ed.gov/students/attachments/funding/PlusLoansQA.pdf[/url]”>http://studentaid.ed.gov/students/attachments/funding/PlusLoansQA.pdf&lt;/a&gt;&lt;/p&gt;

<p>And info on the benefits of federal loans in cases where discharge may be possible, including the Grad Plus here:
[Funding</a> Education Beyond High School: The Guide to Federal Student Aid 2008-09](<a href=“http://studentaid.ed.gov/students/publications/student_guide/2008-2009/english/loancancellation.htm]Funding”>http://studentaid.ed.gov/students/publications/student_guide/2008-2009/english/loancancellation.htm)</p>