The Graduate PLUS Loan
A government funded, low interest loan is available for graduate students to cover expenses incurred. This loan is called the graduate plus loan. This loan is not strictly for parents of graduate students, but for the graduates themselves! Interest is a fixed rate of 8.5 percent. This loan can also be deferred while attending school. Therefore, you will not have to pay the loan back until you graduate!
Have you filled out your FAFSA yet? If not, then you need to do this before applying for the graduate plus loan because it is required to qualify. This loan does not require any collateral to be put up, for example home equity. This loan is non-need based, but strictly based on the graduates’ credit history. If your credit is not up to par, you can have a co-signer. If you have excellent credit, there is no need for a co-signer; you should be able to receive the loan based on your credit alone.
Your school will receive the funds, just like a federal parent plus loan. More than likely, your loan will be disbursed into two separate installments. The loan will be divided into half for each installment. The school will use this loan to pay for tuition, room and board, and any other school related expenses that have been incurred. If there is any remaining, it will be cut into a check and sent directly to you, unless you have authorized it to go elsewhere. The remaining should be used for school related expenses.
You can apply for the graduate plus loan with the online application or you can call customer service through the lender that you choose and speak to a loan counselor to apply over the telephone. You can find a lender anywhere on the internet or you can go to your university’s website and there should be a link allowing you to go to the application page for the graduate plus loan.
