Grad PLUS Loan FAQ's
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When it comes to the Grad PLUS Loan there are a ton of questions to be answered.
Not to worry though because in this brief session, we share the most frequently asked questions.
If you have a question not answered here, feel free to contact the Student Loan Whiz Team and let us know.
We want to make sure everyone gets all of their questions answered.
Please bare in mind that many on our staff are college students who volunteer their services to make sure that
you are all systems go with your educational aspirations.
That just simply means, we might not get back to you right away, but we will!
How Much Can I Borrow Using a Grad PLUS Loan?
You may borrow up to the full
cost of your education; minus other financial aid you’ve received including Federal Stafford loans.
When Should I Apply For a Grad PLUS Loan?
Graduate students should exhaust
their federal Stafford loan eligibility before applying for a Graduate PLUS loan.
What Expenses Does the Grad PLUS Loan Cover?
Grad PLUS Loans fill in the gap
when it comes to tuition costs.
They allow you to borrow up to the full cost of attendance (less any estimated financial
Here’s a comprehensive list of what the Grad PLUS Loan covers:
Tuition and fees
Room and board
Origination and guarantee fees
Disability related expenses
Study abroad programs, (provided the program is approved for credit by the student's home institution)
Rental or purchase of equipment
Materials and supplies required of all students in a particular course of study
Other personal expenses related to education as determined by the school
What Is The Interest Rate on Grad PLUS Loans?
The statutory interest rate of a
Grad PLUS Loan is fixed at 8.5%. Due to the fierce competitiveness of the student loan business, some lenders do
How Long Do I Have To Repay a Grad PLUS Loan?
Generally, you have up to 10
years to repay a Grad PLUS Loan (exclusive of periods of authorized deferment and forbearance).
Lengthening the term will significantly reduce your monthly payment, although you should note that
an extended repayment term will increase the total amount of interest you will pay on your loan. However, since
there are no prepayment penalties under this program, you can reduce your interest costs by increasing the amount
you pay each month or by paying off your loan early without penalty or fee.
When Do I Have To Start Making Payments on a Grad Plus Loan?
You are mandated
to begin paying on your Grad PLUS Loan within 60 days of the final disbursement of the loan amount for the academic
year the loan was used.
Can I Select My Grad Plus Loan Payment Due Date?
Once the payment due date is established,
currently under the present guidelines, it cannot be changed. However, you do have the option to make a payment at
any time prior to the due date.
Can I Prepay My Grad Plus Loan?
The answer is, “Yes!” You may prepay any
portion or all of your Grad Plus Loan at any time without any prepayment penalties. Actually, prepayment is
encouraged because it can significantly reduce the amount of interest paid over the life cycle of the loan.
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