These loans are used by many graduate and professional students to supplement other financial aid, including Stafford Loans. They provide an alternative to private education loans for students who need additional loan support beyond Stafford Loans.
Federal Grad PLUS feature the following:
- 8.5% fixed interest rate for Grad PLUS Loans through FFELP (rate is fixed for the life of the loan)
- 7.9% fixed interest rate for Grad PLUS through Direct Lending (rate is fixed for the life of the loan)
- No grace period for Grad PLUS Loans disbursed on or after July 1, 2006
- Six-month deferment period following school for Grad PLUS Loans disbursed on or after July 1, 2008
- Deferment, forbearance, and multiple repayment options available
- Requires completion of the FAFSA
- Annual Maximum—COA less other aid, including Stafford Loans
- No Aggregate Maximum
- The borrower must be “Credit Ready”—if not, can secure an endorser
