FAQ
- What’s a Grad PLUS loan?
- Am I eligible for a Grad PLUS loan?
- How do I apply for a Grad PLUS loan?
- How much can I borrow with a Grad PLUS loan?
- My credit isn’t the greatest. Will this affect my ability to obtain a Grad PLUS loan?
- I have a student loan in default. Can I still obtain a Grad PLUS loan?
- Can I consolidate my Grad PLUS loans through NextStudent?
- How much does a Grad PLUS loan cost?
- What if I have trouble making my payments?
- If I’m temporarily not making any student loan payments because I’m in school, in deferment or in forbearance, am I still being charged interest?
- What happens if I decide to pay my Grad PLUS loan off early?
- How will my Grad PLUS interest rate be calculated?
- How long do I have to repay my Grad PLUS loan, and what are my repayment options?
A Grad PLUS loan is a non-need-based federally guaranteed student loan available to qualifying students enrolled at least half time in a graduate or professional degree program. Graduate PLUS loans allow graduate and professional degree students to borrow up to 100% of their cost of attendance.
Am I eligible for a Grad PLUS loan?
Any graduate or professional degree students enrolled at least half time can apply for a Grad PLUS student loan, as long as they meet the eligibility requirements.
How do I apply for a Grad PLUS loan?
Just click here. Applying online is fast, easy and secure. You could have a preliminary approval in as little as 15 minutes!
For more details, visit our page on Applying for a Grad PLUS loan.
How much can I borrow with a Grad PLUS loan?
Each year, you can borrow up to the Grad PLUS annual limit. The annual Grad PLUS limit is your cost of attendance, less any other financial aid you’ve received (such as grants and Federal Stafford Loans).
Your cost of attendance is determined by your school and can usually be found on the school’s website or obtained by calling the financial aid office. Besides tuition, the cost of attendance also includes other school-related expenses, such as program fees, educational materials, and a transportation and living allowance.
My credit isn’t the greatest. Will this affect my ability to obtain a Grad PLUS loan?
To qualify for a Grad PLUS student loan, you need to be approved as creditworthy-meaning no derogatory items (such as collections, judgments or bankruptcies) on your credit report for the past five years.
If you don’t think you can qualify, you can always apply with a creditworthy co-signer.
But don’t let credit issues stop you from applying! The experts on our NextStudent credit resolution team might be able to help you. With their help, nearly 90% of our Grad PLUS and PLUS loan applicants have been approved.
Even if you don’t get a preliminary approval right away, with our “second look” policy, we might be able to help you get past unresolved credit issues and approved for your Grad PLUS student loan.
I have a student loan in default. Can I still obtain a Grad PLUS loan?
Unfortunately, if you have a federal student loan that’s currently in default (not including previously defaulted student loans that you’ve since rehabilitated), you won’t be able to obtain a Grad PLUS loan. But if you’ve rehabilitated your defaulted student loans or made satisfactory repayment arrangements on them, you may still be able to qualify for a Grad PLUS loan.
Can I consolidate my Grad PLUS loans through NextStudent?
Yes! As long as you have at least $20,000 in federal college loans and meet the consolidation eligibility requirements, you can consolidate with NextStudent and take advantage of all the benefits of a student loan consolidation.
How much does a Grad PLUS loan cost?
There’s no fee to apply for a Grad PLUS student loan.
Once awarded, every Grad PLUS loan is subject to a 3% government origination fee (charged by the U.S. Department of Education) and a 1% guarantee fee (charged by the guarantor). These fees are taken out of the proceeds of the student loan.
What if I have trouble making my payments?
Once you’ve received all your Grad PLUS loans, you can choose from different student loan repayment options, such as income-sensitive and extended payment plans, which can help make repayment more affordable. For more details, see our answer to “What are my repayment options?” on this page.
If you’re unemployed or experiencing financial difficulties, you may qualify for deferment or forbearance benefits. With the deferment and forbearance benefits that come with your Grad PLUS student loan, you may be allowed to temporarily postpone making payments without affecting your credit rating.
If I’m temporarily not making any student loan payments because I’m in school, in deferment or in forbearance, am I still being charged interest?
Yes. Even if you’re deferring repayment on your Grad PLUS student loan while you’re in school or while you’re in any other deferment or forbearance period, your Grad PLUS loan will be accruing interest. Any unpaid interest that accrues during a postponement period will be added to the principal of your Grad PLUS loan for you to repay once your repayment resumes.
If you want to avoid having any accrued interest added to your principal loan balance, you can choose to make interest-only payments on your Grad PLUS loan during any of these postponement periods.
What happens if I decide to pay my Grad PLUS loan off early?
Then you’ve paid off your student loan early! There are no prepayment penalties on Federal Grad PLUS Loans, so you’ll never be charged extra fees for making more than the minimum payment or paying your Grad PLUS loan off before it’s due.
How will my Grad PLUS interest rate be calculated?
All Federal Graduate PLUS Loans have a fixed starting interest rate of 8.5%.
How long do I have to repay my Grad PLUS loan, and what are my repayment options?
The standard repayment term for a Federal Grad PLUS Loan is 10 years, and your repayment period will be set to begin 30 to 60 days after the final disbursement of your Grad PLUS funds.
But as long as you’re still in school, you can request to defer making any loan payments until you’ve graduated or dropped below half-time enrollment.
Once your repayment period starts, you can also choose an alternate payment plan that could help make your student loan repayment more affordable:
- Extended Repayment: This repayment plan allows you to extend your repayment period up to a 25-year term, depending on your student loan amount. This option is available to you if your education loans total more than $30,000 and if you received your first student loan on or after October 7, 1998.
- Graduated Repayment: With this payment plan, your monthly payments start out lower and gradually increase over time.
- Income-Sensitive Repayment: With this payment plan, your monthly payments are based on your income. You’ll have to submit income documentation to qualify, and you have to requalify each year.
You can also consolidate your Grad PLUS loans once you’ve left school. Consolidating can give you up to 30 years to repay, depending on the total amount of your student loan debt .
What’s a Grad PLUS loan?
Who qualifies?
How do I apply?
How much can I borrow?
How much do Grad PLUS loans cost?
What’s my interest rate?
What are my repayment options?
