Federal Grad PLUS Loan

The Federal Grad PLUS Loan is a credit-based loan for graduate students.

Eligibility

  • Be enrolled at least half-time in a degree granting program
  • Be a U.S. Citizen or eligible non-citizen
  • Maintain Satisfactory Academic Progress (SAP)
  • Complete the FAFSA
  • Complete FHCHS Aid Application
  • Request a credit check which is valid for only 90 days. Do not apply more than 90 days before the beginning of the loan period to avoid credit expiration
  • Complete the Master Promissory Note (MPN)
  • Complete Entrance Loan Counseling

Loan Limit

  • The Office of Financial Aid must determine your Federal Stafford Loan eligibility before they can determine the amount you may borrow under the Grad PLUS Loan.
  • The loan limit for each award year is the annual cost of attendance minus other financial aid. If your request is too high, the amount will be reduced to fit within the cost of attendance.

Interest Rate

  • The interest rate for the Direct Grad PLUS loan is 7.9%.
  • The interest accrues when the first disbursement is made. The student may choose to pay the interest while in school in order to avoid paying interest on interest (capitalized interest).

Loan Fees

Direct Grad PLUS loans have a 4% origination fee. There’s an up-front rebate of 1.5%, so the net disbursement is 97.5% of the gross loan amount. The borrower must make the first 12 payments on time to keep the rebate.

Disbursement of Loan

  • Disbursement of financial aid will begin approximately 1 - 2 weeks following Drop/Add and continue each week throughout the trimester students complete and meet all eligibility requirements.
  • Once the disbursements are posted, the student may view them at my.fhchs.edu. Charges will be deducted at that time.
  • Any remaining amount of financial aid will be processed as a refund.
  • If charges remain on your account after disbursements or if subsequent charges are made to your student account, it is your responsibility to pay for them.

Repayment

Repayment begins immediately upon graduation, or if you drop below half-time enrollment. Grad PLUS disbursed on or after July 1, 2008 has a six-month grace period.

Consolidation

If the parent is denied based on credit, there are some options for the family.

  • Parent may be approved with an endorser (co-signer)
  • Student may complete the estimated budget worksheet and call Financial Services to make an appointment to determine the amount of additional Unsubsidized Stafford Loan eligibility.
  • Private loans may be available. (See Private Loan section for further details)

Consolidation

Loan consolidation is a new loan that is created by combining the repayment of two or more loans to reduce the amount of monthly payments and extend the loan repayment term. The total cost of the loan can be higher with consolidation because the repayment period is much longer than the standard period. Also, any benefits associated with the loans are lost when those loans are consolidated.

Helpful Link

http://studentaid.ed.gov/PORTALSWebApp/students/english/consolidation.jsp?tab=repaying