What is a PLUS loan for graduate students?

Direct PLUS Loans are federal loans that graduate or professional students can use to help pay for college or career school. PLUS loans can help pay for education expenses not covered by other financial aid.

What are the benefits of a Grad PLUS loan?

Eligible applicants can borrow up to the cost of attendance per year after subtracting any other aid they receive. The loan funds can cover tuition, room and board, textbooks and other supplies, technology, and travel costs to and from school. Grad PLUS loans come with a fixed interest rate — currently 7.54%.

Can graduate students use parent PLUS loans?

PLUS loans are only available to the biological or adoptive parents of undergraduate college students (that's the Parent PLUS) or for students enrolled in graduate or professional schools (that's the Grad PLUS).

How much can you get with Graduate PLUS loan?

Grad PLUS Loan limits

Unlike other types of federal student loans, Grad PLUS Loans don't have a specific limit on how much you can borrow per year, nor do they have an aggregate limit. Instead, you might be able to borrow up to your school's certified cost of attendance, minus other financial aid you've received.

What kind of loans can graduate students get?

If you are a graduate or professional student, you can borrow up to $20,500 each year in Direct Unsubsidized Loans. Direct PLUS Loans can also be used for the remainder of your college costs, as determined by your school, not covered by other financial aid.

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What are the 4 types of student loans?

How does a graduate loan work?

You're awarded a set loan amount based on your FAFSA information, and may need more money for your graduate program. You're charged a “loan fee,” a percentage of the disbursed loan amount. Federal Direct Loans only offer a fixed interest rate.

Is it hard to get approved for a Graduate PLUS loan?

Grad PLUS loans can be tougher to qualify for than regular federal student loans: In particular, they have tough credit requirements, and you won't be eligible if you have an adverse credit history. You'll also need to be at least a part-time graduate student, as defined by your school, to qualify.

What is the difference between a graduate loan and a graduate PLUS loan?

The maximum amount you can borrow under the federal Direct unsubsidized loan program for graduate school is $20,500 a year, with a maximum lifetime limit of $138,500. In comparison, a graduate PLUS loan allows you to borrow up to the cost of attendance, minus any other financial aid received.

Are PLUS Loans only for graduate students?

Direct PLUS Loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school.

Can I get student loans for master's degree?

You can take out federal unsubsidized loans if you're enrolled in graduate school at least half-time. Even though these loans accrue interest while you're in school, they are still often the best option compared to grad PLUS and private loans that can have higher fees or interest rates.

How long does it take to get a Grad PLUS loan?

The entire PLUS process can take three to four weeks. The process is simple when you follow these steps: Make sure you have completed a Free Application for Federal Student Aid (FAFSA) with USF's school code #001537.

Can anyone get a PLUS loan?

To be eligible for a Direct PLUS Loan for parents, you must be a biological or adoptive parent (or in some cases a stepparent), not have an adverse credit history, and meet the general eligibility requirements for federal student aid (which the child must meet as well). Was this page helpful?

What does PLUS Loans stand for?

A PLUS loan, also known as a direct PLUS loan, is a federal loan for higher education available to the parents of undergraduate students, as well as graduate or professional students. PLUS stands for Parent Loan for Undergraduate Students.

Do Grad PLUS loans have higher interest rates?

Grad PLUS loans are more expensive than Direct Unsubsidized Loans due to the higher interest rate and origination fee. In some cases, they can even be more expensive than private student loans — especially if you have excellent credit and solid income (or a well-qualified cosigner).

Why was I denied a graduate PLUS loan?

If your credit report indicates you are 90 days or more delinquent on any debt, are in default, have a bankruptcy, foreclosure, repossession, tax lien, wage garnishment or a write-off of any Title IV federal financial aid during the last five years, you will not be eligible to borrow a Grad PLUS Loan.

What disqualifies you from Grad PLUS loan?

Eligibility. You can get a PLUS loan even if you have a bad credit score, so long as you don't have an adverse credit history (i.e., no more than 90 days late on any debt and no defaults, bankruptcies or other adverse action on any Title IV debt).

Why would I be denied a Grad PLUS loan?

The Graduate PLUS Loan, unlike other federal educational loans, is credit-based. The credit review does not evaluate income-to-debt ratios or credit scores. To qualify, you cannot have an adverse credit history.

How much can you borrow for a graduate student loan?

$57,500 for undergraduates-No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students-No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.

How much debt do graduate students generally take on?

On average, graduate students in the U.S. leave school with about $71,000 in graduate school loans alone and $82,810 total in student loans from undergraduate and graduate school. Student debt is more common among medical and law school students than other graduate degrees.

Who qualifies for a Direct Plus loan?

Direct PLUS loans are federal loans that graduate or professional degree students or parents of dependent undergraduate students can use to help pay for education expenses. Direct PLUS loans have a fixed interest rate and are not subsidized, which means that interest accrues while the student is enrolled in school.

What is the most common student loan?

While there are many ways to pay for college, federal student loans are one of the most popular options. These loans offer flexible payment options and often have low interest rates. The federal Direct Loan Program offers a few loan types.

Which student loan option is best?

A subsidized loan is your best option. With these loans, the federal government pays the interest charges for you while you're in college.

What are the disadvantages of a PLUS loan?

The parent, not the student, is responsible for repaying the PLUS loan. PLUS loans don't qualify for all of the income-driven repayment plans that student loans do. PLUS loans have large borrowing limits, making it possible to take on too much debt.