Federal Plus Loan for Graduate Students

Today if you wish you are quite within your rights after graduating from college or university to apply for a Federal Plus Loan for Graduate Students.   This type of loan is very similar to the kind that many parents often taken out for their children as undergraduate students and are being offered through the , Federal Direct Loan Program.   The FDLP disperses the funds from this through the US Department of Education.

However before you go applying for such a loan it is a good idea to know a little more about them.   Below we take a brief look at some of the things to know.

1.     What Kind Of Person Is Eligible For Such Loans?

This type of loan is available to any US Citizen, permanent residents as well as other eligible non-citizens that will have enrolled for at least ½ term in any program that will lead to them obtaining an advanced degree.   Also to be eligible for such loans a person must clearly show they have a good credit history so any students who have been shown to default on a debt or have made a late payment that exceeds 90 days or has gone bankrupt will not be eligible.   However there are cases where students who credit history is poor can ask someone who has a good credit history to endorse the loan for them.   But this means that the student needs to find someone who is willing to pay the loan back if they cannot.

2.     What Amount Can Be Borrowed?

The amount that can be borrowed when it comes to the Federal Plus Loan for Graduate Students is calculated by school.   They will look at the difference between the cost of attending the course and other financial aid that they have been provided with.

3.     What Rates Of Interest And Fees Are Charged On These Loans?

From year to year the interest rates charged on these loans will vary and in recent years it has fluctuated between 7 and 8%.   You will start to pay interest on the loan from the date of disbursement until you are able to pay it back in full.   With a Federal Plus Loan for Graduate Students you are faced with a 3% origination fee along with a 1% default fee and these amounts are actually deducted from the disbursement amount.    So it is important to remember that you won’t actually receive the sum that you asked for.