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Federal Direct Grad PLUS Loan
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Private Student Loan
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How to Apply |
Login to studentaid.gov and complete:
- a Direct PLUS Loan Master Promissory Note.
- a Graduate PLUS Loan Application.
- View full details on applying.
- A credit check is part of the PLUS Loan Application. If a student does not pass the
credit check, the student can either apply for an appeal with the Department of Education
or use a credit-worthy endorser.
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- Internet search to research other private student loan options.
- View questions you should ask lenders when applying for a non-federal private student loan.
- Discuss the terms, conditions and application process of the private student loan
with the lender.
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Eligibility |
- FAFSA required.
- Credit check required.
- Must be enrolled as at least a half-time student, in good academic standing and working
toward a degree or certificate.
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- No FAFSA required.
- Credit check required.
- Must be enrolled as at least a half-time student, in good academic standing and working
toward a degree or certificate.
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Cosigner or Endorser |
- No co-signer required, but a credit co-signer can be used if credit is declined.
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- No co-signer required, but having a co-signer can dramatically decrease your interest
rate.
- Discuss details and conditions with lender.
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Lender |
- U.S. Federal Government, however the loan is serviced by an assigned loan servicing
company.
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- Bank, credit union or lending institution.
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Interest Rate |
- The Direct PLUS loan has a fixed interest rate set based on its first disbursement.
A new interest rate is established each July 1. Visit studentaid.gov/interest to view the present interest rate.
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- Variable and fixed rates available.
- Rates vary by lender and credit worthiness.
- Having a good credit rating and/or using a credit‐worthy cosigner may dramatically
decrease your loan interest rate.
- Discuss details and conditions with lender.
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Interest Accrual |
- Interest begins accruing upon first disbursement.
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- Interest usually begins accruing upon first disbursement.
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Interest Capitalization |
- Interest capitalizes upon repayment or at end of a deferment/grace period.
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- Varies by lender.
- Some lenders capitalize interest monthly or quarterly.
- Discuss details and conditions with lender.
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Loan Fees |
- The Grad PLUS loan has an origination fee set based on its first disbursement. A new
origination fee is established each October 1. Visit studentaid.gov/interest to view the present origination fee.
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- Usually no loan fees.
- Discuss details and conditions with lender.
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Loan Limit |
- Up to cost of attendance minus other financial aid (loans, scholarships and federal
work study) awarded.
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- Up to cost of attendance (loans, scholarships and federal work study) minus other
financial aid awarded.
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Aggregate Lifetime Borrowing Limit |
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- Varies by lender.
- Discuss details and conditions with lender.
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Repayment Grace Period |
- Student may request a 6-month post-enrollment deferment from lender after student
ceases to be enrolled at least half-time or graduates.
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- Varies.
- Discuss details and conditions with lender.
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Repayment Plans |
- Various repayment plans available including:
- Multiple income-driven repayment plans.
- Standard (10 years)
- Extended (25 years)
- and more.
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- Most lenders offer 10-20 year repayment plans.
- Most lenders do not offer income-driven repayment plans.
- Discuss details and conditions with lender.
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Consolidation |
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- Non-federal private student loans cannot be consolidated with federal student loans.
- Eligible for student loan refinancing.
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Public Service Loan Forgiveness (PSLF) |
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Death/Disability |
- Loans discharged upon borrower death or disability.
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- Private loans may have discharge for death or disability.
- Discuss details and conditions with lender.
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