Frequently Asked Questions

Is the Student Plus Program still available?
Graduate Leverage has made the decision to no longer offer the Student Plus Program. We apologize for any inconvenience this may have caused. Please call us at 877-844-9580 if you have any questions.

Why did Graduate Leverage create the Student Plus Program?
During the 2009/2010 academic year, private loan interest rates were extremely high. The Student Plus Program was designed to provide students and families with an alternative option to fund their undergraduate education. The Student Plus Program combined the low-fixed interest rate and deferment options of the Parent PLUS Loan with the repayment structure of a cosigned private loan. This program provided a stable option during a tumultuous time in the student lending industry.

We recommend you consult your financial aid office to learn more about the supplemental funding options available.

Can the Federal Direct Parent PLUS Loan payments continue to be deferred?
As long as the student listed on the Parent PLUS loan is still enrolled at least on a half-time basis, the Federal Direct Parent PLUS Loan allows for in-school deferment. Please note: For unsubsidized loans, interest will continue to accrue during deferment and will be added to the principle balance of the loan after the deferment period has ended. We recommend you consult your school’s financial aid office to learn more about deferred loans.

Am I, as the parent, going to have to make payments on the Federal Direct Parent PLUS Loan?
While the parent is ultimately responsible for the repayment of the Federal Direct Parent PLUS Loan, there is nothing preventing both parent and student from establishing an arrangement allowing the student to make the payments on the loan. The student’s bank account can be used to set up auto debit payments on the parent’s behalf or the student’s email address can also be used in the electronic mail services offered by the Direct Loan Servicer. Please note: In any instance that there are late or outstanding payments, the parent is ultimately responsible for all payments that need to be made.

Will my Federal Direct Parent PLUS Loan be cancelled?
No, your Parent PLUS Loan will not be cancelled due to the cancellation of the Student Plus Program Agreement. The proceeds of the Federal Direct Parent PLUS Loan were used to pay educational expenses for the 2009/2010 academic year and the terms of the Federal Direct Parent PLUS Loan remain in full effect.

• Based on current economic conditions, interest rates on private loans average 10%. Since most private loans have a variable interest rate, the expected rates throughout the life of these loans is projected to be approximately 15%*

• U.S. citizen or a permanent resident
• Valid SSN
• Enrolled at least half-time in a degree program

Undergraduate Student Stafford Loan Limits – dependent students:
1st year - $5,500
2nd year - $6,500
3rd year - $7,500
4th year - $7,500

Undergraduate Student Stafford Loan Limits – independent students:
1st year - $9,500
2nd year - $10,500
3rd year - $12,500
4th year - $12,500

Graduate or Professional Student Stafford Loan Limits:
$8,500 Subsidized Stafford
$12,000 Unsubsidized Stafford

Parent PLUS Loans are federal loans in which the parent is the borrower for a dependent student. This loan is only available to parents of undergraduate students.

Graduate PLUS Loans are federal loans designed specifically for graduate students who have already reached the limit of Stafford loans and need additional funds.

• U.S. citizen or a permanent resident
• Approved credit evaluation
• Valid SSN
• Parent of student enrolled at least half-time in an undergraduate degree program or a graduate student with at least half-time status.

• Origination fee: 3%
• Interest rate: fixed 8.5% for FFELP Loans; 7.9% for Direct Loans

Repayment begins as of the final disbursement date. Payments will be due within 60 days of the final disbursement or deferment end date.

For Parent PLUS loans disbursed on or after 7/1/08, a deferment period is available upon request during the in-school period and 6 months following the in-school period.

For Graduate PLUS loans a deferment period will be automatically granted during the in-school period and 6 months following the in-school period, unless requested otherwise.