Graduate PLUS Loans

On March 30, 2010, the Health Care and Education Reconciliation Act was signed into law. A component of this Act is the elimination of the Federal Family Education Loan Program (FFELP) that allowed banks and private lenders to provide federal loans. Beginning on July 1, 2010, all federal student loans will be funded through the government’s Federal Direct Loan Program. Based on these changes, Graduate Leverage will no longer offer Graduate PLUS Loans. Please visit the U.S. Department of Education’s website for more information on the Direct Loan Program and Graduate PLUS Loans.

Here is some important information about Graduate PLUS Loans that might be helpful as you plan to pay for school:

What is a Graduate PLUS Loan?

A Graduate PLUS Loan is usually the best option for students who require additional funding for graduate school after grants, scholarships, other free aid and Stafford loans are used. Graduate PLUS Loans are low-cost federal loans which are available to graduate students at a fixed interest rate. Graduate PLUS funds are disbursed directly to the school.

Eligibility for the Graduate PLUS Loan is based on the student’s credit history but not their credit score. This typically makes the Graduate PLUS Loan more accessible than private student loans which have more stringent eligibility criteria.

Repayment of the Graduate PLUS Loan may be deferred while the student is in-school. This deferment option provides flexibility for students while managing educational costs.

Graduate students must complete the Free Application for Federal Student Aid (FAFSA) before applying for the Graduate PLUS Loan. The FAFSA will determine a student’s qualification for free aid, Stafford loans and Graduate PLUS loans.

Loan Terms: