Graduate Plus (Grad PLUS)
New Loan Program
Effective July 1, 2006

A new federal education loan program available as of July 1, 2006, to graduate professional students, which will allow them to borrow on their own behalf through what was formerly the Parental Loan for Undergraduate Students (PLUS).

Students may borrow up to the full cost of their education less any other aid received.

Students who have borrowed private/alternative loans in the past should consider applying for the Grad PLUS loan instead.

Who is eligible?

• Graduate Professional Students
• U.S. Citizens, permanent residents, or other eligible non-citizens

What is the interest rate? 

• fixed 8.5% (may vary by lender based on repayment incentives available

What are the fees?

• 3% origination fee (taken off the top of the loan amount)
• 1% Federal default fee (guarantor or lender may be picking this up)

What are the requirements? 

• Must complete the Free Application for Federal Student Aid (FAFSA)
• Must complete PLUS Loan Master Promissory Note (as borrower and student) 
• Must be credit approved

Other features? 

• Repayment begins within 60 days after the final disbursement, but in-school deferments are available for students attending at least half-time.  Payments then begin after in-school deferment ends.  UMB students are encouraged to contact their lender to confirm their in-school status
• The student/borrower is responsible for all interest that accrues; any unpaid interest will be capitalized (added to the loan principal)
• Federal Grad PLUS loans may be consolidated with federal Stafford loans

How to apply?

• You may apply for a Grad PLUS loan with any lender who participates in the Federal Family Education Loan Program (FFELP)
• If you borrowed Stafford loans, you are encouraged to stay with the same lender
• You must contact the lender yourself to begin the application process and be credit approved
• You will be required to complete and submit a FFELP Federal PLUS Loan Master Promissory Note (MPN), via paper or electronically, to the lender
• Because the Grad PLUS loan requires a credit check, do not submit multiple applications to multiple lenders
• Returning student Grad PLUS borrowers, who have already completed a PLUS loan MPN, must contact their lender each year to receive approval for a new loan amount