Grad PLUS Loans for Graduate Students
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Summary: The Grad PLUS Loan is a federal student loan that helps pay for graduate school and professional school. The Grad PLUS Loan offers a fixed 7.08% interest rate for the 2019-2020 school year and flexible loan limits. To be eligible, students must pass a credit check and cannot have an adverse credit history. A 4.236% fee is deducted from the loan amount before the funds are sent to the school.
NOTE: If you have strong credit (or can secure a creditworthy cosigner) you may want to compare private student loan options. There could be a cost savings on both the fees (most lenders offer zero origination fees) and interest rates (starting as low as around 1.49% in today’s marketplace).
The Grad PLUS Loan, also called a Graduate PLUS Loan, is a federal student loan available to students attending graduate school and professional school. It offers a fixed interest rate and flexible loan limits.
Eligibility for the Grad PLUS Loan does not depend on demonstrated financial need, but you need to file the Free Application for Federal Student Aid (FAFSA®) to qualify. You also have to pass a simple credit check.
The Grad PLUS Loan allows you to borrow up to the full annual cost of attendance (COA) minus other financial aid received (scholarships, fellowships, grants, federal student loans, private student loans). There is no aggregate (cumulative) loan limit.
Key benefits of the Grad PLUS Loan:
- The interest rate is fixed
- Loan payments can be deferred while you are enrolled on at least a half-time basis at an accredited graduate school or professional school
- A cosigner is not required
- Multiple repayment plans (including income-based) are available
- The interest paid on the loan may be tax deductible
Grad PLUS Loan Limit
The annual limit on a Grad PLUS Loan is equal to your school’s total cost of attendance (COA) minus any other financial aid received. There is no aggregate (cumulative) loan limit.
The cost of attendance includes:
- Tuition and fees
- Room and board
- Books
- Supplies
- Equipment
- Transportation
- Miscellaneous and personal expenses
Example:
Grad PLUS Loan Interest Rates and Fees
The interest rates on Grad PLUS Loans are fixed and do not change over the life of the loan. The interest rate for the 2019-2020 academic year is 7.08%.
Every year on July 1, interest rates are reset based on current market rates. The interest rates are based on the 10-year Treasury Note (determined each year by the final auction prior to June 1) plus a fix margin (see table).
| Loan Program
|
Interest Rate Formula
|
Interest Rate Cap
|
Current Interest Rate (2019-2020)
|
| Grad PLUS Loan |
10-Year Treasury + 4.60% |
10.5% |
7.08% |
The interest on a Grad PLUS Loan starts to add up (accrue) from the date the loan is first disbursed. If you don’t pay the interest as it accrues, it will be capitalized (added to the loan balance), increasing the amount of the loan.
The current fee on Grad PLUS Loans is 4.236%. Fees are deducted from each loan disbursement. You can ask the college financial aid office to increase the loan amount to cover the fees, up to the annual loan limit.
How to Apply for a Grad PLUS Loan
The first step in the application process is to file the FAFSA or Renewal FAFSA (for returning students) at FAFSA.ed.gov. The FAFSA is a requirement to borrow from the Grad PLUS Loan program.
To obtain a Grad PLUS Loan, you should apply for a PLUS Loan at StudentLoans.gov or contact the financial aid office at your college or university. You will use the same FSA ID used to sign your FAFSA to apply for your Grad PLUS Loan.
Grad PLUS Loan Eligibility
Students enrolled in graduate school and professional school programs can take out Grad PLUS Loans.
Degree programs and common examples:
- Masters: M.A., M.S.
- Doctorate: Ph.D., Ed.D.
- Business: M.B.A.
- Law: LL.M., J.D., S.J.D.
- Medical: M.D., D.O.
- Dental: D.M.D., D.D.S.
- Nursing: M.S.N., D.N.P.
- Veterinary medicine: D.V.M.
Loan eligibility and the loan limits are not based on demonstrated financial need. Even wealthy students can borrow through the program.
Required
- Simple credit check: You can’t have an adverse credit history
- Cosigner/endorser (if you have a negative credit history)
Eligibility Not Based On
- Demonstrated financial need
- Income levels
- Debt-to-income ratios
- Credit scores (FICO scores)
Credit Requirements
To qualify for a Grad PLUS Loan, you need to pass a credit check that takes the following into account:
- No student loan defaults
- No 90+ day delinquencies on your debt
- No bankruptcies or other adverse action on any Title IV loans
- Ultimately, no adverse credit history
Note: this is a less strict standard than what is imposed by private lenders. If you were to shop for or apply for a private student loan, you (or your cosigner) would also need to pass a debt-to-income ratio and demonstrate proof of income.
What is Adverse Credit History for a Grad PLUS Loan?
- A current delinquency of 90 or more days on more than $2,085 in total debt; or
- More than $2,085 in total debt in collections or charged off in the past two years (before the date of the credit report); or
- Default, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of federal student loan debt in the past five years (before the date of the credit report)
Cosigners
Even if you have an adverse credit history, you can still qualify for a Grad PLUS Loan by getting a cosigner (called an endorser) who does not have an adverse credit history. A cosigner is a co-borrower, equally obligated to repay the debt. If you don’t have an adverse credit history, you don’t need a cosigner to apply for the loan. If you get denied for a Grad PLUS Loan, you can re-apply with a qualified cosigner. (Note: If you are denied a Grad PLUS Loan because of an adverse credit history, you don’t become eligible for higher Direct Unsubsidized Loan limits.)
Sallie Mae student loans offer competitive fixed and variable rates for undergraduates, graduate students and parents.
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How Loan Funds Are Distributed
The Direct Loan program sends the Grad PLUS Loan funds to your school to be credited to your student account. In most cases, the loan will be sent (disbursed) in at least two installments.
Loan funds are credited to your account in this order:
- Tuition and fees
- Room and board (if you are living in college-owned housing)
- Other school charges (with your permission)
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In-School Deferment and Grace Period
While you are enrolled in school at least half-time, your Grad PLUS Loan will be placed into deferment, which means you don’t have to make any payments. In addition, you don’t have to make payments during the 6-month grace period after you graduate or drop below half-time enrollment status. Just remember that interest on your loan will start to accrue (add up) as soon as all of the loan funds are sent to your school. Even though you aren’t making any payments, interest is still adding up.
Grad PLUS Loan Repayment
The standard repayment term on Grad PLUS Loans is 10 years. However, you can qualify for a longer repayment term if you consolidate the loans or have more than $30,000 in federal student loans with a single lender.
Unlike Parent PLUS Loans, Grad PLUS Loans are eligible for nearly all of the different repayment plans offered by the U.S. Department of Education.
Eligible repayment plans:
Can a Grad PLUS Loan Be Cancelled If I Change My Mind?
Yes. You can cancel the loan or reduce the loan amount by returning funds to the lender.
Your graduate school must notify you when it credits your student account with Grad PLUS Loan funds. This notification must be sent to you no earlier than 30 days before, and no later than 30 days after, the school credits your account. You may cancel all or a portion of the loan by informing the school within 14 days after the date the school sends this notice, or by the first day of the payment period, whichever is later. (The first day of the payment period is usually the first day of the term. Ask the school about the first day of the payment period.)
Comparison of Federal Student Loans for Graduate Students
| Direct Unsubsidized Loan |
Grad PLUS Loan |
| 6.08% fixed interest rate |
7.08% fixed interest rate |
| 1.059% fee* |
4.236% fee* |
| Demonstrated financial need not required |
Demonstrated financial need not required |
| Annual borrowing limit: $20,500 ($40,500 for medical students) |
Annual borrowing limit: Cost of Attendance (COA) minus other financial aid received |
| You are responsible for paying all interest |
You are responsible for paying all interest |
* For loans borrowed Oct. 1, 2019 through Sept. 30, 2020
Recommendations
- File the FAFSA every year to maintain eligibility for student aid.
- Take out the maximum amount of Direct Unsubsidized Loans before considering a Grad PLUS Loan.
- Compare the costs and benefits of Grad PLUS Loans and private student loans. If you have excellent credit or a strong cosigner, you may get a lower interest rate with a private student loan.
- If you are denied for a Grad PLUS Loan due to an adverse credit history, find a cosigner (also called an endorser) and reapply.
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- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum)3
- No origination, application and processing fees, no fees for early repayment
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Get the money you need for school quickly and at a great price.
- Low rates, free to apply, and no disbursement fees
- 0.25% interest rate reduction when you make payments by automatic debit1
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We get it. You want to pay as little interest as possible and have monthly payments you can afford. That's why the College Ave Student Loan Product has low rates and multiple repayment options to help you manage the total cost of the loan.
College Ave Student Loan Full Terms and Information
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
2This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
3As certified by your school and less any other financial aid you might receive. Minimum $1,000.
Information advertised valid as of 5/18/2020. Variable interest rates may increase after consummation. Lowest advertised rates require selection of full principal and interest payments with the shortest available loan term.
Sallie Mae Student Loans
- Variable Rates: 1.25% APR - 9.44% APR (lowest rate shown includes auto debit discount). Fixed rates also available.1
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Sallie Mae® Smart Option Student Loan® for Undergraduate Students
When grants, scholarships, and federal aid are not enough, choose the Smart Option Student Loan® for Undergraduate Students. You can apply for the money you need for college, and the flexibility you want.
- Competitive variable rate starting from 1.25% APR to 9.44% APR (Competitive fixed rates also available. Lowest rate shown includes auto debit discount.)1
- No origination fee and no prepayment penalties2
- Easy online application accessible on all devices
- Get a 0.25 percentage point interest rate reduction while enrolled in and making monthly payments by automatic debit3
- You can apply for the funds you need to cover all your school-certified expenses for the entire school year including tuition, fees, books, supplies, housing, meals, travel, and even a laptop4
- Applying with a cosigner may help you get a better rate
- You may apply to release your cosigner from the loan after you graduate, make 12 on-time principal and interest payments and meet certain credit requirements5
Sallie Mae Student Loan Full Terms and Information
We encourage students and families to start with savings, grants, scholarships, and federal student loans to pay for college. Students and families should evaluate all anticipated monthly loan payments, and how much the student expects to earn in the future, before considering a private student loan.
This information is for undergraduate students attending participating degree-granting schools. Borrowers must be U.S. citizens or U.S. permanent residents if the school is located outside of the United States. Non-U.S. citizen borrowers who reside in the U.S. are eligible with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and are required to provide an unexpired government-issued photo ID to verify identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.
1Interest is charged starting at disbursement, during school and the separation/grace period, and until the loan is paid in full. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan's Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a freshman with no other Sallie Mae loans.
2Although we do not charge you a penalty or fee if you prepay your loan, any prepayment will be applied as provided in your promissory note: First to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.
3Borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month and may be suspended during periods of forbearance or deferment, if available for the loan.
4Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. [Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half time.]
5Only the borrower may apply for cosigner release. Borrowers who meet the age of majority in their state may apply for cosigner release by providing proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if your status has changed since you applied). In the last 12 months, the borrower must be current on all Sallie Mae serviced loans (including no hardship forbearances or modified repayment programs) and have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. When the cosigner release application is processed, the borrower must demonstrate the ability to assume full responsibility of the loan(s) individually, and pass a credit review that demonstrates a satisfactory credit history including but not limited to no: open bankruptcy, open foreclosure, student loan(s) in default or 90 day delinquencies in the last 24 months. Requirements are subject to change.
6This promotional benefit is provided at no cost to borrowers with loans that first disburse between July 1, 2018 and April 20, 2020. Borrowers who reside in, attend school in, or borrow for a student attending school in Maine are not eligible for this benefit. No cash value. Terms and
Conditions apply. Please visit Chegg.com/studystarter/termsandconditions for complete details. This offer expires one year after issuance
Information advertised valid as of 5/26/2020
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
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Discover® Student Loans
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Discover® Student Loans
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- Get a one-time cash reward for each new Discover undergraduate and graduate student loan when you get at least a 3.0 GPA (or equivalent). Reward redemption period is limited.
2
- 6-month grace period for undergraduate loans and 9-month grace period for graduate loans.
- By adding a cosigner, you may improve your likelihood for loan approval and may lower your interest rate.
- Applying online is quick and easy and our knowledgeable, US-based Student Loan Specialists are ready to help you anytime 24/7. Tools and information at DiscoverStudentLoans.com can help students and parents through each step of the process — from exploring financial aid to repaying student loans.
Discover Student Loan Full Terms and Information
1Aggregate loan limits apply.
2 Students who get at least a 3.0 GPA (or equivalent) qualify for a one-time cash reward on each new Discover undergraduate and graduate student loan. Reward redemption period is limited. Terms and Conditions Apply.
3Lowest [rates/APRs] shown [for Discover Student Loans] are available for the most creditworthy applicants and include an interest-only repayment discount and Auto Debit Reward. The interest rate ranges represent the lowest and highest interest rates offered on Discover student loans, including Undergraduate, Graduate, Health Professions, Law and MBA Loans. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 1.00% as of April 1, 2020. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Our lowest APR is only available to customers with the best credit and other factors. Your APR will be determined after you apply. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s credit history (if applicable). Learn more about Discover Student Loans interest rates.
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CommonBond Private Student Loan
Student loans pay for college or graduate school at thousands of schools across the country
Get the help you need to pay for school with CommonBond. We’ve got your back with competitive rates, award-winning service, borrower protections, and multiple repayment options. No hidden fees, no double-digit APRs here. And we offer resources to help you make the right personal finance choices.
We’re on a mission to make student loans more affordable, more transparent, and easier to manage. We provide choices and support every step of the way, and take pride in being a partner on your educational journey. And the best part? With CommonBond, you’ll always receive a competitive rate. No double-digit interest rates here.
Here’s what you get when you choose CommonBond:
- Flexibility: Since everyone's financial situation is different, we provide flexibility — so you can make the best decision for yourself –
- Borrow up to 100% of your school's cost of attendance.
- Loan terms of 5, 10, and 15 years, each available at both fixed and variable rates.
- Multiple repayment options, from paying as you go while in school (in exchange for a lower rate) to completely postponing payments until you graduate.
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CommonBond Private Student Loan Full Terms and Information
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). The following table displays the estimated monthly payment, total interest, and Annual Percentage Rates (APR) for a $10,000 loan. The Annual Percentage Rate (APR) shown for each in-school loan product reflects the accruing interest, the effect of one-time capitalization of interest at the end of a deferment period, a 2% origination fee, and the applicable Repayment Plan. All loans are eligible for a 0.25% reduction in interest rate (ACH discount) by agreeing to automatic payment withdrawals once in repayment, which is reflected in the APR shown for Full Principal and Interest Repayment Plan loans. Variable rates may increase after consummation. All variable rates are based on a 1-month LIBOR assumption of 0.99 as of April 25, 2017.
Under the Full Deferment Repayment Plan option, interest and principal may be deferred while a borrower is enrolled in school on at least a half time basis, and for an additional six month grace period (up to a maximum of 60 consecutive months) following (i) graduation, (ii) termination of enrollment, or (iii) if a borrower ceases enrollment on at least a half-time basis, at which time interest is capitalized and a 60-month repayment period (5-year term), a 120-month repayment period (10-year term) or a 180-month repayment period (15-year term) begins. There are three other Repayment Plan options available, an Interest Only Repayment plan, in which principal will be deferred and payments made on interest only during the same period described above after which payments will increase to full principal and interest payments, a Flat Repayment plan, in which payments of $25 will be made during the same period described above after which payments will increase to full principal and interest payments, and a Full Principal and Interest Repayment plan, in which payments will begin immediately after disbursement. A borrower's actual APR may vary depending on the repayment option selected by the borrower. The dollar amount of the origination fee is based on the amount borrowed and will be added to the outstanding loan balance upon disbursement. Loans are not offered or endorsed by the educational institution that you are attending. CommonBond is not affiliated with any educational institution.
For more information, visit https://commonbond.co/disclaimers#note3.
Stride Funding Income Share Agreements
- No interest payments!1
- Payments based on a fixed percentage of future income.
- Never pay more than you can afford.
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Stride Funding Income Share Agreements
Stride Funding offers students flexible ways to pay for their education with Income Share Agreements (ISAs).
- No interest payments!1
- Payments based on a fixed percentage of future income.
- Never pay more than you can afford.
- Innovative alternative to traditional student loans.
- Grace period after graduation before payments begin.
- Pause payments for certain life events.
- Graduate students or second Bachelor's only (Must have Bachelor's degree).
Stride Funding Income Share Agreement Full Terms and Information
1Graduate programs or second Bachelor's only (Must have Bachelor's degree); Must meet minimal credit standards for approval; US Citizens and permanent residents only; School and program restrictions apply
