This loan is an alternative funding source for graduate/professional students who need additional funding to meet the cost of education. Financial need is not required to be eligible to borrow a GradPLUS Loan.

Graduate/Professional students who are enrolled at least half-time may borrow up to the cost of education minus other aid.  This loan is made by a bank, savings and loan association, credit union or other lender and is insured by a state guarantee agency.

The interest rate on GradPLUS loans is fixed at 8.5%. Interest accrues from the date of disbursement. The Federal government does not pay the interest on GradPLUS loans while the student is enrolled in school.

Repayment of principal and interest begins within 60 days after the date of disbursement although principal payments may be deferred under certain circumstances. Interest continues to accrue and must be paid during periods of deferment or forbearance. Lenders also have options regarding repayment methods.

The GradPLUS loan borrower (or the cosigner if required) must be determined credit worthy by the lender.