salliemae Federal Graduate PLUS loan

Federal Graduate PLUS loan

Pay for grad school with the Federal Graduate PLUS loan. Graduate PLUS loans are federally sponsored loans for students attending graduate school. With a Grad PLUS loan, you may borrower up to the full cost of your education, less other financial aid received including Federal Stafford loans.

Graduate students should exhaust their federal Stafford loan eligibility before applying for a Graduate PLUS loan.

Eligibility

• You may be eligible for a Graduate PLUS loan if you are enrolled in school at least half time.
• A credit check is required.
• You must be a U.S. citizen or national, a U.S. permanent resident, or an eligible non-citizen.
• You must submit a FAFSA.

Features

• Flexible repayment options are available.
• No payments while you are in school at least half time.
• You can manage your account online 24/7.
• You get life-of-loan servicing from Sallie Mae.
• There is no prepayment penalty.
• We have an easy online application and approval process with an instant credit decision.
• Interest may be tax deductible.
• You can align repayment of your Graduate PLUS loans with your Stafford loans.
• Graduate PLUS borrowers may use Sallie Mae's PLUS Success, a free, confidential credit counseling service. Sallie Mae PLUS Success credit specialists work with students to resolve credit issues so that they may become PLUS eligible. Students who are not Graduate PLUS eligible on the basis of their own credit may obtain a creditworthy endorser.
• Many Sallie Mae lenders offer borrower benefits on Graduate PLUS loans that can save you money while you are in school and throughout repayment.

• Interest rate reductions that start when you are in school and last throughout repayment.

  • A 0.25 percentage point interest rate reduction that starts at first disbursement—the interest rate will never exceed 8.25%.
  • A 1 percentage point interest rate reduction after the first on-time payment.*
  • A 0.50 percentage point interest rate reduction that starts when you make your payments through automatic debit.**

  In addition, you may save even more through loan credits that reduce your outstanding loan balance.***

Save even more with Upromise Loan Link^SM! Student and parent borrowers who join Upromise^® can link their Sallie Mae^® loan account to their Upromise account and use their Upromise rewards to help pay down their eligible Sallie Mae serviced student loans.

Upromise members can turn everyday spending into savings for education by shopping with participating companies who will contribute a portion of their qualified spending into their Upromise account. Once borrowers become Upromise members, they can invite family and friends to join and contribute their rewards to the borrower’s Upromise account to increase savings.

Loan terms

Loan limits

You may borrow up to the full cost of your education, less other aid received.

Interest rate

The Graduate PLUS interest rate is fixed at 8.5%. Some lenders who work with Sallie Mae offer interest rate reductions that may reduce the interest rate to as low as 6.75%.*

Fees

There is a 3% origination fee charged by the federal government. Up to a 1% federal default fee is also charged. There are lenders and guarantors who work with Sallie Mae that pay all or a portion of the default fee for loans guaranteed July 1, 2007–June 30, 2008.

Repayment

• Standard repayment: You make both principal and interest payments each month up to a 10-year repayment term. This plan has the lowest total interest cost.
• Graduated repayment: You make reduced payments in the early years of repayment and increased payments thereafter, while still paying off the loans within the maximum 10-year period. With graduated repayment, you have a higher total loan cost than with standard repayment.
• Income-sensitive repayment: Payments are a percentage of your gross income. You must reapply every year for this plan and payments are adjusted annually to reflect changes in income. With income-sensitive repayment, you have a higher total loan cost than with standard repayment.
• Extended repayment: If you have a high amount of student loan debt, you may be eligible for up to a 25-year repayment term and the choice of standard or graduated payments to keep payments affordable. With extended repayment, you have a higher total loan cost than with standard repayment.
• Student Loan Consolidation: You combine your eligible loans into a new loan with a single monthly payment and a fixed interest rate. While student loan consolidation can substantially lower your monthly payments, it will generally result in a higher total loan cost.

Legal

• You are responsible for all interest that accrues on the Graduate PLUS loan. Unpaid interest will be capitalized (added to the loan principal) and you will therefore pay interest on a higher amount.
• Repayment on PLUS loans begins within 60 days after the final disbursement of the loan. Graduate PLUS loans, for borrowers who are certified by their school to be attending at least half time, will be placed into in-school deferment. No payments are required during in-school deferment.

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*The 1 percent point interest rate reduction benefit is available after the first payment has been made by the due date as initially scheduled and during active periods of repayment for as long as the borrower continues to make payments by the due dates as initially scheduled. A borrower who makes a single late payment can re-earn the interest rate reductions by making the next 24 payments by the due dates as initially scheduled. **The 0.50 percentage point interest rate reduction is available during active periods of repayment for as long as the borrower's payment is successfully deducted from their bank account. The interest rates referenced assume that the borrower takes advantage of all of the interest rate reduction borrower benefits offered by the Sallie Mae lender or selected lender partner. Borrower benefits described above are available on Graduate PLUS loans first disbursed July 1, 2007–June 30, 2008 by Sallie Mae lenders and selected lender partners. ***The loan credit borrower benefit programs are based on the original loan amount (less cancellations, refunds, and returns). Sallie Mae reserves the right to modify or discontinue loan programs at any time without notice. Terms and conditions apply.