Student Plus offers over $8,500 in potential interest savings when compared to average rates on private student loans!*
Student Plus Program
The Graduate Leverage Student Plus Program is a lower cost alternative to a traditional private student loan. Our program may be utilized by undergraduate students and parents who have educational costs not covered by financial aid, such as scholarships, grants, work study or Stafford loans. Below you will find an overview of the program and how it compares to commonly used funding options.
Who Should Use the Student Plus Program?
The Student Plus Program is designed for families of undergraduate students who are looking for a low cost option to pay for college and prefer the student makes payments on the loan following graduation. Our program uses the Federal Direct Parent PLUS Loan as the underlying source of funds, so families can take advantage of its low, fixed interest rate, and arranges for the student to make payments. However, parents who prefer to make the loan payments are encouraged to utilize the Federal Direct Parent PLUS Loan without the assistance of the Student Plus Program.
How Does Student Plus Compare To Available Loan Options?
To bridge the gap between the cost of education and what is allotted by other types of aid, families often choose between a private student loan and a Federal Parent PLUS Loan.
- Private Student Loan: Current economic conditions have made this option less attractive. » View details
- Repayment Responsibility: Student may serve as the primary borrower but most programs require a cosigner. Some programs also require payments while the student is in-school
- Cost: Most have variable interest rates that currently average approximately 11%**. Fees and rates may vary based on lender's credit standards and the credit profile of the student borrower and/or parent cosigner
- Eligibility: More restrictive criteria than federal loans and may vary by lender's credit standards, school type and student degree
- Federal Parent PLUS Loan: Often not used because the parent is the sole borrower, but the terms are far superior to most private student loan offerings. » View details
- Repayment Responsibility: Parent is responsible for repaying the loan
- Cost: Fixed rate (7.9% for Direct PLUS and 8.5% for FFELP PLUS). Fees: 2.5% to 4%
- Eligibility: Parent's credit must be in good standing but credit score is not used to determine rate or eligibility
- The Graduate Leverage Student Plus Program: Our program combines the best features of the Federal Direct Parent PLUS Loan and a private student loan into one program.
The Graduate Leverage Student Plus Program
The Student Plus Program uses the Federal Direct Parent PLUS Loan as the underlying source of funds, but puts the parent and student in a similar position to a cosigned private loan scenario. While the parent assumes the responsibility for the Federal Direct Parent PLUS Loan, the parent only makes payments if the student does not fulfill his/her responsibilities under our agreement.
How Does The Student Plus Program Work?
The Student Plus Program establishes an arrangement between the student and the Federal Direct Parent PLUS borrower, the parent. Under the Student Plus Program, the student makes payments on the Federal Direct Parent PLUS Loan following graduation. Graduate Leverage provides an innovative servicing platform that notifies the student of payment due dates, collects payments from the student, forwards payments to Direct Loan Servicing and helps protect against risks of delinquency.
The Student Plus Program is an accessible and affordable option for families that has far greater repayment flexibility than almost any private loan. In addition, schools are assured of a stable and integrated loan program that fits existing processes.
Set-up Fee: To establish your Student Plus account with Graduate Leverage,
there is a set-up fee based on the certified balance of the underlying Parent PLUS Loan.
A student may pay the fee at disbursement of the loan or defer the fee until after graduating or
separating from school. Please refer to the following chart for the fee amounts:
| Approved Amount of Parent PLUS Loan |
Fee amount if paid at disbursement |
Fee amount if deferred until repayment |
| $3,999 and below |
$100 |
$150 |
| Between $4,000 and $7,999 |
$200 |
$300 |
| $8,000 and above |
$250 |
$375 |
We do not recommend using the Student Plus Program for educational costs less than $1,000.
Processing Fee: A processing fee of $4.75 will be charged each month following the student's graduation. Electronic payments are encouraged as a $2 fee will be assessed for payments made by check.
Notes and Assumptions
The Graduate Leverage Student Plus Program is not affiliated with the U.S. Department of Education or the Federal Parent PLUS Loan Program.
For parent applicants who are Massachusetts residents, the minimum amount for the Student Plus Program is $6,001. We will determine the Student Plus Program amount after the school certifies the parent's eligibility for the Federal Parent PLUS Loan.
All Student Plus Program fees collected by Graduate Leverage are expressly paid for billing and account servicing functions performed by Graduate Leverage.
*Loan Example: $20,000 borrowed over 2 years: $10,000 per year and disbursed in two installments per year. Parent obtains 12 month forbearance on Parent PLUS Loan after student’s separation from school. No payments made by student until 6 months after separation (27 months of non-payment).
Interest accrued during in-school period capitalizes. Rates: 7.9% fixed interest rate for DL PLUS.
Private loan rate is initially 11.25% and increases to 13.0% at repayment start and 14.3% after 60th monthly payment assuming rate basis returns to normal levels. Repayment for Student Plus Program: Ten year term. $20,000 principal balance, $13,095 interest and $1,070 in Student Plus Program fees ($500 in set-up fees plus $570 in monthly payment fees over 10 year term). Total Repayment for Private Loan: Ten year term. $20,000 principal balance and $22,840 interest costs.
**Student Lending Analytics Blog, Spring 2009. http://studentlendinganalytics.typepad.com/student_lending_analytics/2009/05/2009 -sla-private-loan-series-before-you-apply-for-a-private-student-loan.html.