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Applying for a Grad PLUS Loan
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To apply for a Grad PLUS Loan, please complete the following:
- Submit a FAFSA for the intended year (if you have not already done so)
- Complete the PLAP
- If it is your first time applying for a Grad PLUS Loan, sign a Grad PLUS Master Promisory Note (MPN). You will need a U.S. Department of Education Personal Identification Number (PIN) to complete the online MPN.
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Eligibility
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To be eligible for a Grad PLUS Loan, students must:
- Be a U.S.Citizen or eligible non-citizen
- Be enrolled at least half-time in a graduate or professional program
- File a Free Application for Federal Aid (FAFSA) for the intended year
- Not be in default on any type of student loan
- Not owe a repayment on a student grant
- Pass a credit check
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Credit Check
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The Federal Direct Loan Origination and Applicant Services (LOAS) will conduct a credit check on the Grad PLUS applicant.
If the applicant is ninety days delinquent on any account, has declared bankruptcy, or has had a financial judgment, the Grad PLUS will be denied. The LOAS will notify the applicant and identify the name & phone number of the agency that reported the adverse credit status. The applicant should immediately request a copy of the credit report to verify its accuracy. If the credit data is inaccurate, the loan denial decision may be appealed by contacting the LOAS. Please note that our office is not provided any information about the specific reason for the denial. All loan denial appeals are handled by the LOAS. The LOAS may be contacted at 1.800.557.7394.
If the decision was based on accurate information, the applicant may exercise the option to obtain an endorser (similar to a co-signer) on the loan. The LOAS will include an endorser promissory note with the denial letter. The endorser can be anyone who meets the above credit criteria and is willing to endorse the Grad PLUS loan.
When the LOAS center notifies our office of the loan denial, we will send out a PLUS Loan Origination Rejection Form (PLORF). The purpose of the PLORF is to provide options and for the borrower to officially communicate to us exactly what (s)he plans to do about the Grad PLUS denial. We will not cancel the application until we receive the PLORF form.
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Interest and Fees
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PLUS Loan interest rates for 2009-2010:
• 7.9% Graduate PLUS Direct Loans
• 7.9% Parent PLUS Direct Loans
Fees:
• 4.0% Origination Fee
• 1.5% Rebate
• 2.5% Assessed Fee
There is a 0.25% interest rate reduction with electronic auto-debit payments. Interest begins accruing immediately and may be paid periodically or capitalized.
Common Interest Questions
When does interest accrue on my loan?
It depends on the type of loan and the status of the loan.
- On Direct Unsubsidized student loans, PLUS loans, and the unsubsidized portion of a Consolidation loan, interest accrues in all statuses beginning from the day it was disbursed until the date it is paid in full.
- Direct Subsidized loans accrue interest during a forbearance and while in repayment. A Direct Subsidized Loan does not accrue interest while in school, during the grace period or in a deferment period.
- Interest accrues on a daily basis. Factors such as the number of days between your last payment, the interest rate, and the amount of your loan balance determine the amount of interest that accrues each month. You can calculate how much will accrue on your loan by using the Simple Daily Interest Formula.
Is there a maximum amount the interest rate can be raised to?
Yes. All variable interest rate Direct Loans have a maximum interest rate. You can see the maximum rate for each loan type by reviewing the current interest rates found on Direct Loan's interest rate information table.
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Repayment
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Repayment begins 60 days after the final disbursement of the loan. For example, if you apply for the loan for the full academic year, half of the loan will be disbursed in the Fall and half of the loan will be disbursed in the Spring. You will begin repayment 60 days after the Spring disbursement.
There is no grace period for Direct PLUS Loans. However, you can postpone payments on your Direct PLUS Loan while you are in school. While you are enrolled in school on at least a half-time basis, you are eligible for an in-school deferment that allows you to postpone payments on your Direct PLUS Loan until you graduate or drop below half-time status.
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In-School Deferment
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Direct Loan Servicing Center may automatically grant an in-school deferment on your Direct PLUS Loan based on information reported by your school to the U.S. Department of Education showing that you are enrolled at least half time. The Direct Loan Servicing Center will notify you of the deferment and of your option to cancel the deferment and begin making payments on your loan. Make sure you contact the Direct Loan Servicing Center to verify an in-school deferment was granted via www.dl.ed.gov or (800) 848-0979.
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Additional Information
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Below are a list of websites and phone numbers that may prove useful in receiving, planning and repaying a Direct Grad PLUS Loan.
Direct Loan Repayment Calculator
Calculate your Federal Student Loan monthly payments.
National Student Loan Data System
Current info on loan history. (800) 433-3243
TTY Users (800) 730-8913
8:a.m. to Midnight (Eastern Time) - seven days a week
Ombudsman for Federal Student Aid
Assists borrowers having problems with federal loans. (877) 557-2575
TTY Users - use the same number for Relay Call Services
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