If you are a graduate student, you are eligible to apply for a Graduate PLUS Loan. These loans have a fixed interest rate and an extended repayment term. In order to qualify for a Graduate PLUS Loan, you must be enrolled at least half-time in a degree seeking program. You also must complete a credit check and sign a Master Promissory Note.
The interest rate of a Graduate PLUS loan is determined by the 10-year Treasury note rate and an additional percentage. This loan can be used to pay for tuition, room and board, and other expenses. Additionally, a 1% cash back graduation reward is available for eligible students. However, there are several other factors you should consider before taking out a loan. Among them are the amount you can afford to borrow and your budget.
Unlike private educational loans, a Graduate PLUS loan has a fixed interest rate that is never renegotiated. However, you should always read the promissory note carefully. It is best to have an easy-to-understand explanation of the terms of your loan before signing.
A Federal Direct Graduate PLUS Loan is offered by the Department of Education and is available to qualified students. Before you apply, you must fill out the Free Application for Federal Student Aid (FAFSA). Once you are accepted, you must complete the entrance counseling process. Your school’s financial aid office will provide you with entrance counseling instructions. When you have completed the requirements, you will be awarded a finalized disclosure statement.
After you receive a Graduate PLUS Loan, you are required to repay it over a 10 year period. Students are also offered the option of a deferment or forbearance. Forbearance allows you to stop making payments on the loan until the six month grace period. If you decide to forbear, your loan servicer will automatically place your loan on in-school forbearance. During the forbearance period, you will not be charged any late fees or penalties. Upon completion of the in-school forbearance period, your loan will automatically be placed on regular repayment.
While there are no specific borrowing limits, the maximum loan amount is limited by the amount of financial aid you received from other sources. Plus, you may not be able to work while in school. Therefore, you should borrow only as much as you need to meet your education goals.
A Federal Direct Unsubsidized Student Loan is available to students who are permanent residents. These loans have a low fixed interest rate and a flexible repayment term. Depending on your situation, you may be able to use an income-based repayment plan to pay off the loan over a longer period of time. There is also a 6-month grace period on these loans, which can be used to find a job or search for another school.
Whether you are a parent or a student, a PLUS loan can help you cover the cost of a graduate degree. However, before you decide to apply for a PLUS loan, you should take a moment to understand the terms of your loan.