Grad PLUS Loan For Graduate Students
What is a Grad PLUS Loan?
Graduate students are now able to borrow up to the total cost of attendance minus other financial aid received under the Federal PLUS Loan Program. Grad PLUS Loans have the same loan benefits as the Parent PLUS Loan Program.
Grad PLUS Loan Lenders
You can obtain Grad PLUS Loans directly through the government (Direct Loan Program), or from private lenders, such as banks. Check with your school’s financial aid office to see whether your school participates in the Direct Loan Program or the FFELP (Federal Family Education Loan Program).
Graduate PLUS Loan Interest Rate
Graduate PLUS Loans have a fixed interest rate of 8.5% if you obtain them through a private lender, like a bank. If you obtain your loan through the Direct Loan Program, the rate is reduced to 7.9% fixed.
What are the Other Types of Graduate Student Loans?
There are 2 other types of graduate student loans available:
- Federal Stafford Loans
Graduate students should always borrow the maximum in Federal Stafford Loan funds before utilizing the Grad PLUS Loan. The Federal Stafford Loan has a lower interest rate and does not require a credit check.
- Private Graduate Student Loans
Private graduate student loans are a non-federal loan option that can help you finance your graduate education. Keep in mind that you can borrow the full cost of attendance using the Stafford and Grad PLUS Loans, and so most students won’t need to utilize private graduate student loans. However, if you (or a credit-worthy co-signer) have significant income and a good credit history, you might be able to get a lower rate by shopping around with private student loan lenders. Keep in mind that private loans have variable interest rates, so your rate can go up and down. You may want to check with your school’s financial aid office to see if they recommend any private loan programs.