PLUS Loan for Graduate and Professional Students
A new PLUS loan option is available to help graduate students and professional students pay for college. As of July 1, 2006, a graduate student or professional student may borrow a Federal PLUS loan to help with educational expenses! 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. 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 Grad PLUS loan, the student is the borrower and not the parent.
There are credit requirements for the graduate student loan, but no debt-to-income ratios or credit scoring are used. If you are denied based on adverse credit, you may use this form to obtain a credit worthy endorser who is secondarily responsible for the loan. The endorser must be a credit worthy U.S. citizen, permanent resident, or other eligible non-citizen.
The Grad 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.
| |
Grad PLUS Loan |
Private loan
with co-signer |
Private loan
without co-signer |
| Amount borrowed |
$10,000 |
$10,000 |
$10,000 |
| Interest rate |
8.5% |
9.5% |
14.5% |
| Total interest paid* |
$4,878 |
$5,528 |
$8,632 |
*Assumes a 10-year repayment term
Apply now online for a Grad PLUS Loan!
Federal Legislation Affecting Grad PLUS Loans
New Deferment Options Available to Grad PLUS Borrowers
If you have been denied for a Grad PLUS Loan, use this form to apply with an endorser (PDF)
Mail completed endorser form to:
Edfinancial Services
P.O. Box 36014
Knoxville, TN 37930-9929
Email us, or call us toll-free at 1-800-337-6884.