Introduction To The Federal Graduate PLUS Loan!
A low interest, federally backed college student loan guaranteed by the U.S. Government. The Graduate PLUS college student loan is a non-need credit based college student loan very similar to a private college student loan, but having the benefits of having a fixed interest rate and being federally guarantee.
The Graduate PLUS College Student Loan will allow graduate college students to borrow the total cost of their graduate education to including tuition, room and board, supplies, lab expenses, and travel, less any other financial aid.
• Interest will be fixed, locked in at 8.5%
• Graduate PLUS loan payments can be deferred while you are in school
• No Co-signer Required
Graduate PLUS college student loans are non-need based. Graduate PLUS College Student Loans will be based on your credit history. It is important to remember to not forget to search for scholarships and consider the Graduate Stafford college student loan as well.
How much can I borrow with a Graduate PLUS college student loan?
The yearly limit on a Graduate PLUS College Student Loan is equal to your cost of attendance minus any other financial aid assistance you have received. For example, if your cost of attendance will be $6,000 and you have received $4,000 in other financial aid assistance, you may borrow up to but unfortunately no more than $2,000.
Who Gets The Money The School Or Me?
Your lender (for a FFEL Graduate PLUS College Student Loan) will send the student loan funds to the school. Your school will probably require you to endorse a disbursement check and send it back to the school. In most cases, the student loan will be disbursed in a minimum of two installments, and none of the installment will be greater than half the student loan amount. The funds will initially be applied to your tuition, fees, room and board, and other school charges. If any student loan funds are remaining, you will receive the amount back as a check or in cash that is unless you have authorized the amount to be released to your school account. Any remaining student loan funds must be used for your education expenses.
What Kind Of Credit Will I Need?
A qualified Graduate PLUS College Student Loan borrower will not have an adverse credit history, hopefully (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). Do remember that Graduate and Professional Student PLUS loans will not use any kind of a debt-to-income ratio or FICO score, unlike a private student loan application would.
Do You Need A Co-Signer?
You may need a co-signer if your credit is not sufficient. Graduate college students with an excellent credit history should not need a co-signer to apply for the loan.
Can you cancel the student loan if you have changed your mind, even if you have already signed the promissory note agreeing to the student loan terms? Yes. Your school is required to notify you in writing whenever it has credited your account with Graduate PLUS College Student Loan funds. This notification must be sent to you no earlier than 30 days before and no later than 30 days after; the school has credited your account. You may cancel all or just a portion of the student loan if you have informed 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.
