Federal graduate PLUS loan is a federal student loan that you can use to finance your grad school. This low interest student loan is a good option to cover your full financial cost while you are in a grad school.It is strongly recommended that you apply for federal Stafford loans, both subsidized and unsubsidized prior to applying for federal graduate PLUS loan.
You must be a citizen of US or a permanent resident or even an eligible non-citizen to be eligible for this loan. You must be enrolled in school at least half-time. Credit check is also a requirement. Lastly, you must submit a FAFSA.
This loan has advantageous features such as flexible repayment options, round the clock online management (most lenders provide this facility), no prepayment penalty, and aligning repayment with Stafford loans.
Borrowers who fail to get Graduate PLUS eligible because of their poor credit record may still apply for this loan with a creditworthy endorser. The endorser should also be a U.S. citizen or national, permanent resident, or an eligible non-citizen.
The interest rates are generally low, thereby making this loan very attractive. Here is the most common offer:
At the first disbursement, a 0.25 percentage point interest rate reduction is assured. The reduction increases to 0.75 percentage point when you begin repaying your Graduate PLUS loan. When you make your payments through automatic debit, you are eligible for a 0.50 percentage point interest rate reduction. Thus you can save a lot of money.
A 1 percent federal default fee is also charged on this loan. The standard repayment term is 10 years. But if you have high loan debt it can be extended to a period of 25 years.
If you want to get more details on various types of student loans, you navigate to the student loans directory on the site map. You can also apply for student loans through this portal.
|
