Complete Guide to Understanding and Applying for a Graduate PLUS Loan 💸
Greetings, dear readers! Are you considering pursuing a graduate degree? If yes, a Graduate PLUS Loan might be exactly what you need to meet your financial obligations. This article is a complete guide to help you understand and apply for a Graduate PLUS Loan. Read on to find out everything you need to know about this loan program.
What is a Graduate PLUS Loan? 🤔
A Graduate PLUS Loan is a type of loan that is available to graduate students and professional students. The loan is offered by the Department of Education to help students pay for their graduate or professional degree programs. Unlike other forms of financial aid, Graduate PLUS Loans are credit-based, meaning that the borrower must have a good credit history to be eligible.
Eligibility Criteria for Graduate PLUS Loan 📜
There are several eligibility criteria that you need to meet to qualify for a Graduate PLUS Loan. We have listed them below:
Criteria |
Description |
|---|---|
Enrollment Status |
You must be enrolled at least half-time in a graduate or professional degree program to be eligible for a Graduate PLUS Loan. |
Credit History |
You must have a good credit history. This means that you cannot have a current delinquency of 90 or more days or any of the following negative marks in your credit history: |
– Bankruptcy discharge within the last five years |
|
– Foreclosure within the last five years |
|
– Default within the last five years |
|
– Open collection accounts or charge-offs |
|
Citizenship Status |
You must be a U.S. citizen or eligible noncitizen to be eligible for a Graduate PLUS Loan. |
Loan Limits |
You can borrow up to the full cost of attendance minus any other financial aid that you have received. |
How to Apply for a Graduate PLUS Loan 📝
To apply for a Graduate PLUS Loan, follow these steps:
- Fill out the Free Application for Federal Student Aid (FAFSA).
- Contact the financial aid office at your school to find out their specific application procedures.
- Complete the application for a Graduate PLUS Loan on the Federal Student Aid website.
- Sign a Master Promissory Note (MPN).
Once your application is approved, the Department of Education will notify your school, and the funds will be disbursed directly to your school.
FAQs about Graduate PLUS Loan
1. Can I borrow a Graduate PLUS Loan if I have bad credit?
If you have bad credit or a negative credit history, you may still be eligible for a Graduate PLUS Loan if you can find an endorser (co-signer) who has good credit history.
2. How much can I borrow with a Graduate PLUS Loan?
You can borrow up to the full cost of attendance minus any other financial aid that you have received.
3. Can I use a Graduate PLUS Loan to pay for living expenses?
Yes, you can use a Graduate PLUS Loan to pay for living expenses, such as rent, utilities, and groceries.
4. What is the interest rate on a Graduate PLUS Loan?
For loans made before July 1, 2021, the interest rate is 5.30%. For loans made from July 1, 2021, to June 30, 2022, the interest rate is 6.28%.
5. Do I have to make payments on a Graduate PLUS Loan while I am in school?
No, you do not have to make payments on a Graduate PLUS Loan while you are enrolled at least half-time in a qualified graduate or professional degree program.
6. Can I consolidate my Graduate PLUS Loan with other federal loans?
Yes, you can consolidate your Graduate PLUS Loan with other federal loans to simplify your payments, but you should be aware that consolidation may increase your overall interest rate.
7. What happens if I can’t repay my Graduate PLUS Loan?
If you can’t repay your Graduate PLUS Loan, contact your loan servicer immediately to discuss your options. You may be eligible for a deferment or forbearance or an income-driven repayment plan.
8. What is the repayment period for a Graduate PLUS Loan?
The repayment period for a Graduate PLUS Loan is ten years, but you may be eligible for an extended repayment plan, depending on the amount of your loan.
9. What is the difference between a Graduate PLUS Loan and a Federal Direct Unsubsidized Loan?
The main difference between a Graduate PLUS Loan and a Federal Direct Unsubsidized Loan is that a Graduate PLUS Loan is credit-based, while a Federal Direct Unsubsidized Loan is not. Additionally, the interest rate on a Graduate PLUS Loan is higher than the interest rate on a Federal Direct Unsubsidized Loan.
10. Can I reapply for a Graduate PLUS Loan if I am denied?
If you are denied a Graduate PLUS Loan, you may appeal the decision or find an endorser (co-signer) with good credit history. Alternatively, you can explore other options, such as private loans or scholarships.
11. How long does it take for a Graduate PLUS Loan to be disbursed?
It typically takes two to four weeks for a Graduate PLUS Loan to be disbursed to your school after your application is approved.
12. Can I cancel a Graduate PLUS Loan?
Yes, you can cancel a Graduate PLUS Loan within 14 days of receiving the loan funds without penalty. After 14 days, you will be responsible for the interest on the loan.
13. How do I know if I am eligible for a Graduate PLUS Loan?
To find out if you are eligible for a Graduate PLUS Loan, contact the financial aid office at your school. They will be able to provide you with more information about the application process and eligibility criteria.
Conclusion: Start Your Graduate Journey with a Graduate PLUS Loan!
Now that you have all the information about Graduate PLUS Loans, we encourage you to apply to kickstart your graduate journey. Keep in mind that the application process can take time, so it’s best to start early. Take advantage of this opportunity to achieve your academic and career goals.
At the end of the day, a Graduate PLUS Loan can provide you with the financial backing that you need to fulfill your ambitions. So don’t hesitate to apply for it today. We hope that this article has helped you in your decision-making process, and we wish you all the best in your academic endeavors.
Closing Statement:
The content provided in this article is for informational purposes only, and we do not guarantee its accuracy or completeness. It is the reader’s responsibility to conduct further research and seek professional advice before making any decisions based on the information provided. By reading this article, you agree to our terms and conditions.