Graduate Plus Loan

In an effort to encourage taxpayers to obtain Master’s, doctorate and other advanced degrees, the U.S. government now offers a type of student loan through Sallie Mae designed specifically to help students pay for graduate school expenses.

Graduate Plus Loan Availability

Graduate PLUS loans are credit-based loans that are offered to all prospective students via loan application, irrelevant of their personal or family income, tax bracket or level of assets shown on the FAFSA. However, a credit check is required in addition to completion of the FAFSA. Borrowers must also be U.S. citizens or nationals, permanent residents or specially-eligible non-citizens. For more information, visit the Graduate PLUS Loan FAQs page or loan application section available on most GradPLUS websites.

Key Characteristics: Graduate Plus Loan

GradPLUS loans can be used to pay for any kind of postgraduate expense, including tuition, fees, books, room and board, lab fees and even travel expenses in some cases. GradPLUS loans can be used to fund the entire cost of postgraduate education, minus any other financial aid received such as Stafford Loans. The graduate plus loan faq page on lender websites will provide further details on these loans.

Graduate Plus Loan Repayment Terms

GradPLUS loans have flexible repayment schedules and charge a fixed loan interest rate. The current loan interest rate is 8.5%. They do not require a cosigner, and the interest paid on them is deductible in most cases. Students can defer payments on these loans until after they finish school as long as they are at least half-time students, and there is no prepayment penalty.

Graduate Plus Loan Financial Help

GradPLUS loans can allow students to obtain advance degrees that might be otherwise unachievable. If you are a parent considering this type of loan and need guidance completing your FAFSA, contact your financial advisor or student aid officer.