Graduate Plus Loans: What are They, and How to Get Them
There is a lot of confusion among most students when it comes to graduate plus loans. Among this confusion is who the loans come from, and who can qualify for them. However, the hardest to determine can be when you actually need to get them.
What are Graduate Plus Loans?
Graduate plus loans are similar to parent plus loans, except that they are taken out by the student themselves rather than their parents. These loans are available because graduates are often beyond the age considered to be a dependent for terms of taxes, and therefore in terms of federal financial aid. However, these loans are still a part of the federally guaranteed loans offered by the Department of Education.
Unlike other types of federal financial aid, graduate plus loans are not based on financial need. Instead, to qualify you must be enrolled in a graduate or professional degree program. This might include a master’s degree, medical school, or law school, among others.
Additionally, the loan is based on a credit check, and those with adverse credit or not enough credit may need a co-signer for their loan. However, unlike a private student loan, these loans do not go by credit score or income, only credit history.
Advantage of a Graduate Plus Loan
The biggest advantage to getting graduate plus loans is the ability to borrow as much as you need. The only cap to these loans is the cost of your education. This includes tuition, books, room and board, travel, and any other educational expenses. Your interest rate is also guaranteed at a fixed rate, 8.5 percent.
When Should I Get a Graduate Plus Loan?
The best time to get graduate plus loans is when you are a graduate or professional student who has maxed out their financial aid resources. Those who do not qualify for need based financial aid would also do well with graduate plus loans.
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