As the fall semester gets underway, graduate students may be struggling with meeting their tuition bills, program fees and other education-related expenses. Even after grants and Stafford loans, some graduate and professional students may still be left with educational expenses to cover. For those students who need some help meeting the costs of their graduate or professional degree program, Federal Grad PLUS Loans from NextStudent, a leading Phoenix-based education funding company, could provide the financing they need.
What Is a Grad PLUS Loan?
Originally designed for parents of undergraduate students, the Federal PLUS Loan Program was expanded last year to be available to graduate and professional degree students as well. A Grad PLUS loan is a non–need-based federal education student loan that can help creditworthy students enrolled in a graduate or professional program meet their educational expenses. And because Grad PLUS loans are available throughout the academic year, graduate students can apply even mid-semester.
Eligible graduate students can qualify for PLUS assistance even if they’ve received other types of financial aid. Upon approval, graduate and professional students may borrow up to the annual PLUS limit, which is equal to their cost of attendance less any other financial aid (such as grants and Stafford loans) received. Besides tuition, the cost of attendance also includes education-related expenses such as program fees and educational materials, and a reasonable allowance for transportation and living expenses.
What Are the Advantages of a Grad PLUS Loan?
Grad PLUS loans feature several benefits for those students pursuing a master’s, doctorate or professional degree:
1. No prepayment penalties: Borrowers may pay off a Grad PLUS loan early without being assessed any additional charges.
2. Fixed interest rate: Grad PLUS loans have a fixed interest rate of 8.5%.
3. In-school deferment: Students with Grad PLUS loans may choose to defer making payments until they’ve finished school or dropped below half-time enrollment.
4. Forbearance and hardship deferment benefits: If they’re having trouble making their monthly payments, Grad PLUS borrowers may request to temporarily postpone making payments without affecting their credit rating.
5. Consolidation benefits: Once they’ve left school or dropped below half-time status, graduate students may consolidate their Grad PLUS loan(s), either alone or along with any Stafford or other eligible federal education loans, and take advantage of all the features of federal student loan consolidation.
6. Co-signers allowed: Graduate students who don’t meet the credit requirements for a Grad PLUS loan may apply with an eligible co-signer.
7. Mid-year application: Graduate students may apply for a Grad PLUS loan throughout the academic year. Students should contact their financial aid office for the exact final deadline.
Who Is Eligible for a Grad PLUS Loan From NextStudent?
To be eligible for a Grad PLUS loan from NextStudent, students must be enrolled at least half-time in a program leading to a graduate or professional degree and must maintain satisfactory academic progress, as determined by their school. They need to file a FAFSA (Free Application for Federal Student Aid), and they need to apply for their maximum eligibility in Federal Stafford Loans before applying for PLUS aid from NextStudent.
A Grad PLUS applicant must also be a U.S. citizen or permanent resident and qualify as “creditworthy.” To be approved as creditworthy, borrowers may not be in default on any federal student loan and may not have derogatory items such as collections, tax liens, bankruptcies or foreclosures within the last five years on their credit report. If graduate students applying for PLUS aid don’t meet the credit eligibility requirements for a Federal Grad PLUS Loan from NextStudent, they may apply with a co-signer who does meet this requirement.
Whether it’s for a master’s degree or Ph.D, law school or medical school, fixed-rate Grad PLUS loans from NextStudent provide eligible graduate and professional degree students with a federally guaranteed, low-interest student loan option that can help them meet their educational expenses. And with mid-year application and in-school deferment benefits, Federal Grad PLUS Loans from NextStudent afford graduate and professional students the flexibility they need to fully finance their education while going to school.
NextStudent believes that getting an education is the best investment you can make, and we are dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans, Private Student Loans and Student Loan Consolidation.
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