Grad PLUS Loans
Typically, graduate students can borrow $20,500 per year of Federal Direct Unsubsidized loans up to a cumulative aggregate limit of $138,500, including loans received for undergraduate study.
There are no fixed annual or aggregate loan limits for Direct PLUS Loans. The maximum Direct PLUS Loan amount that a graduate/professional student or parent can borrow is the cost of attendance minus other financial aid received. See the annual and aggregate limits for subsidized and unsubsidized loans.
Note: You can request an increase in the amount of a Direct PLUS Loan you previously requested if it's for the same school and same award year. The loan can't exceed the cost of attendance (COA) minus other aid.
There's a general rule floating around stating that your total student loan balance should not exceed your expected starting salary out of college. So if, based on your desired profession, you anticipate making $50,000 your first year after college, you wouldn't want your student loan balance to exceed $50,000.
What is considered a lot of student loan debt? A lot of student loan debt is more than you can afford to repay after graduation. For many, this means having more than $70,000 – $100,000 in total student debt.
Your potential savings from refinancing will vary based on your loan terms. For example, say you have a $50,000 loan balance with a 6.22% interest rate — the average student loan interest rate for graduate students. On the standard 10-year repayment plan, you'd pay $561 per month and $17,277 in interest over time.
Fortunately, student loans aren't taxable, so you don't report student loans as income on your tax return, and you don't have to pay taxes on certain types of financial aid.
If your credit report indicates you are 90 days or more delinquent on any debt, are in default, have a bankruptcy, foreclosure, repossession, tax lien, wage garnishment or a write-off of any Title IV federal financial aid during the last five years, you will not be eligible to borrow a Grad PLUS Loan.
Because Federal Direct Unsubsidized Loans have lower origination fees and interest rates than Grad PLUS, it is recommended to accept all Unsubsidized Loan eligibility prior to determining if you wish to accept Grad PLUS Loans.
Unlike other federal loans, which have set annual and lifetime limits, the Grad PLUS Loan is designed to cover the full cost of attendance.
The optimum time frame to apply for a Grad PLUS loan would be no sooner than 30-45 days prior to the start of the academic term. PLUS loan credit checks are valid for 180 days, during this time a Master Promissory Note (MPN) must be activated.
The amount of Federal Pell Grant funds you may receive over your lifetime is limited by federal law to be the equivalent of six years of Pell Grant funding. Since the amount of a scheduled Pell Grant award you can receive each award year is equal to 100%, the six-year equivalent is 600%.
The maximum PLUS loan amount you can receive is the cost of attendance (determined by the school) minus any other financial aid received.
Unlike Pell Grants, it is possible for a student who is separately enrolled and eligible at multiple schools to get a Direct Subsidized/Unsubsidized Loan (and for a graduate/professional student or parent to receive a Direct PLUS Loan) at more than one school for the same period.
Grad PLUS loans may be included in a Federal Direct Consolidation Loan (which have a repayment period of up to 30 years) and are eligible for Income-Driven Repayment and Public Service Loan Forgiveness.
Students don't have to demonstrate financial need to be eligible for a Grad PLUS Loan. However, in addition to meeting basic federal aid requirements, applicants must be enrolled in a certificate- or degree-issuing program at least half-time, and the program must be at an eligible school.
NOTE: Graduate and Professional Student PLUS loans do not use any kind of a debt-to-income ration or FICO score, unlike private education loans. If you are not approved for a Grad PLUS or private alternative loan you will need to get a co-signer.
Any loan funds that remain will be disbursed to you in the form of a refund to help you pay for any additional education expenses. These funds will either be mailed to you in the form of a check or sent via direct deposit to the bank account you set up through Workday.
More than $2,085 in total debt in collections or charged off in the past two years (before the date of the credit report); or. Default, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off of federal student loan debt in the past five years (before the date of the credit report)
The Graduate PLUS Loan can cover the full cost of attendance for your graduate program, with the exception of other financial aid received. There is no aggregate loan limit.
Generally, you'll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. Learn about your repayment options. Use Loan Simulator to get an early estimate of what your monthly payment amount would be under the plans for which you're eligible.