PLUS Loan for Graduate and Professional Students
New PLUS loan program to help graduate students and professional students pay for college - Effective for loans certified by the educational institution on or after July 1, 2006, a graduate student or professional student may borrow a Federal PLUS Loan! With benefits similar to the traditional PLUS loan for parents, the graduate student PLUS loan program (Grad PLUS) allows graduate students or professional students to borrow up to the cost of education at a particular institution minus any other financial aid. There are credit requirements for the graduate student loan, but no debt-to-income ratios or credit scoring are used. The Grad PLUS loan is meant to fill the gap between your financial aid package and the cost of education - your school must determine your Federal Stafford Loan eligibility before you apply for a PLUS loan for graduate students. With the graduate student PLUS loan, the student is the borrower and not the parent.
The graduate student PLUS Loan interest rate is a fixed rate of 8.5 percent, and some lenders offer discounts on the rate. With high approval rates and a low, fixed student loan interest rate, this new federal PLUS loan option gives graduate students and professional students an alternative to private student loans. Since private student loans often have variable interest rates, the fixed rate of the Grad PLUS loan allows for better debt management and can result in significant savings.
|
Total Amount Borrowed |
Typical Private Student Loan Rate without a Co-Signer |
Typical Private Student Loan Rate with a Co-Signer |
PLUS Standard Rate* |
|
$10,000 |
14% |
9.5% |
8.5% |
|
Total Interest Paid over 10 year Repayment Term |
$8,632 |
$5,528 |
$4,878 |
*As of July 1, 2006