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About Grad PLUS Loans
There are many things to consider prior to applying for a Grad PLUS loan. Please review the information below and the resources that follow to assist you in making an informed decision.
• Research Your Options
• Grad PLUS Versus Alternative Loans
• Resources
Research Your Options
Borrow only what you need! Remember that excessive debt can have a negative effect on your future plans and lifestyle for years to come.
Information on Direct Grad PLUS: Direct loans for students
Calculation what you will owe: interactive worksheet
Information about the SPU payment plan as an alternative to borrowing
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Important Facts about Grad PLUS and Alternative Loans
Grad PLUS Loans
- Interest Rate: DL Grad PLUS Loans have a fixed interest rate of 7.9%
- Net 2.5% Fees: Grad PLUS Loans will have a 3% origination fee and 1% default fee which is deducted from your loan at disbursement. The lender provides a 1.5% up-front rebate for assumed on-time payment when the loan enters repayment. Click here for more information.
- Credit Check: If your credit is less than perfect, you're more likely to be approved for a Grad PLUS than for an alternative loan.
- Co-signer: You may borrow with a cosigner if you can't qualify for a PLUS Loan on your own.
- Maximum Amount: You may borrow up to the cost of attendance less other aid received — there are no maximum limits as with Stafford Loans.
- Repayment: Repayment begins 60 days after the loan is fully disbursed. There is no grace period.
- Deferment: There are deferment and forbearance options which allow you to postpone payments while in school and temporarily after you enter repayment.
- Consolidation: Grad PLUS Loans can be consolidated with other federal Stafford Loans allowing you to make one monthly payment.
- Cancellation: Grad PLUS Loans are insured against death and disability.
Alternative Loans
- Interest Rate: The interest rate is variable and may go up or down depending on the marketplace.
- Fees: Some alternative loans may charge an origination fee or other fees.
- Credit Check: Your interest rate is dependent on your credit history. The lower your credit score, the higher your interest rate. If you have poor credit, you may need a creditworthy cosigner.
- Maximum Amount: You may borrow up to the cost of attendance less other aid.
- Repayment: Some lenders offer a six month grace period before the first payment is due.
- Deferment: There are limited forbearance options available to postpone payments. Usually available during school and sometimes in case of unemployment.
- Consolidation: You will not be able to consolidate your alternative loans with your Stafford Loans.
- Cancellation: Alternative loans are not federally insured against death and disability.
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Resources
Glossary: Financial aid and loan terms provided by Northwest Education Loan Association (NELA).
Alternative Loans: SPU and NELA provide additional information about alternative loans that may be helpful to you.
StudentAid.ed.gov: The U.S. Department of Education provided this Web site to assist students with funding post secondary education.
Mapping Your Future: A national, collaborative, public service project of the financial aid industry, bringing together the expertise of the industry to provide free college, career, financial aid and financial literacy services for students, families and schools.
National Student Loan Data System: The U.S. Department of Education's central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan Program, the Pell Grant program, and other Department of Education programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and Pell Grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or Pell Grant data.
Repayment Calculator
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Last Updated: 10/13/2011
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