The Deficit Reduction Act of 2005 (S. 1932) was signed by the President on February 8, 2006 and became Public Law 109-171. One of the measures in the bill expands the PLUS loan program for parents of dependent undergraduates to include graduate and professional students. This Graduate PLUS loan program allows a graduate/professional school student to borrow on his own behalf up to the cost of attendance.
Does the Graduate PLUS program replace the existing Parent PLUS program?
No, the federal PLUS program has simply been expanded to make loans available to graduate-level students, which they may borrow on their own behalf. Parents of undergraduate, dependent students may still borrow from the existing federal PLUS program for their dependent child(ren).
When did the Graduate PLUS program take effect?
The GPLUS loan program went into effect for loans originated on or after July 1, 2006.
Do students applying for a Graduate PLUS loan need to submit a FAFSA?
Yes. Graduate PLUS loan applicants are required to submit the Free Application for Federal Student Aid (FAFSA) and, before receiving a Graduate PLUS loan, students must have applied for the annual loan maximum eligibility under the Stafford loan program (subsidized and unsubsidized).
What are the loan limits for GPLUS?
There are no annual or aggregate loan limits for the Graduate PLUS. Graduate and professional students may borrow up to the cost of attendance minus any financial aid received, as determined by the Office of Student Financial Aid.
Is credit score a factor in qualifying for a Graduate PLUS loan?
Yes. A credit check is required to be eligible for a Graduate PLUS loan. Borrowers with adverse credit can either clean up their credit or secure an endorser. The same credit criteria that are applicable to Parent PLUS loans will be applicable to Graduate PLUS loans.
Is there a grace period after graduation that delays the start of repayment?
There is currently no grace period, but Graduate PLUS borrowers may defer payment on their loans while in school (enrolled at least half-time). For more information, contact the Direct Loan Servicer.
Is there another way to defer payment on the Graduate PLUS?
Graduate PLUS borrowers qualify for the same deferment options as Stafford borrowers. This means that within 60 days after full disbursement when the first payment is typically due on a PLUS loan, borrowers receive an in-school deferment status (for as long as the borrower is enrolled at least half time). For more deferment information, contact the Direct Loan Servicer.
Does the federal government subsidize the interest on Graduate PLUS loans?
No, the GPLUS loan is unsubsidized. The borrower is responsible for all interest that accrues on the loan.
What repayment options are offered on Graduate PLUS loans?
The same repayment options are available on Stafford and Parent PLUS loans:
regular payments of principal and interest
reduced payments that may be as low as interest-only
payments based on income
extended repayment of up to 25 years for qualified borrowers
What type of fees will be assessed on Graduate PLUS loans?
A required federal origination fee will be charged for GPLUS loans.
How do I sign a promissory note for the Graduate PLUS loan?
The Master Promissory Note (MPN) is currently available for electronic signature at www.dlenote.ed.gov. Signing your note electronically will expedite the completion of your GPLUS loan disbursement
If you prefer to sign a paper MPN, you must request one from Student Fiscal Services, either by email at sfshelp@u.washington.edu or by clicking the Live Chat button. If requesting a paper note, be sure to include your full name and student number; your promissory note will be mailed within five business days to your Permanent address on file. Confirm your Permanent address on MyUW, and update it if necessary.
How can I compare the GPLUS loan with other federal programs?
Finances
