All your GradPLUS Loan questions answered.What is the Federal PLUS Loan for graduate students?
The PLUS Loan for graduate students—the Nellie Mae GradPLUS Loan—is a federal student loan for graduate- and professional-degree students enrolled at least half time in eligible programs.
There is no minimum or maximum income requirement to be eligible for the loan, but the borrower must have good credit. The student must complete a FAFSA and meet other federal eligibility requirements, such as being a U.S. citizen or national, a U.S. permanent resident, or eligible noncitizen. The student must also be enrolled in an eligible institution as determined by the U.S. Department of Education.
What are the advantages of getting the GradPLUS Loan from Nellie Mae?
After searching out grants and scholarships that don’t have to be paid back, then maximizing your Stafford Loan borrowing, consider a low-cost GradPLUS Loan to help pay for grad school. With Nellie Mae as your GradPLUS lender, you may be eligible to save the 1% default fee. You can also reduce your interest rate with automatic-debit payments!
Learn how to earn these benefits.
Applying for the Nellie Mae GradPLUS Loan is easy and convenient. We've streamlined the process, allowing you to pre-qualify and apply online.
You get exemplary customer service, as well as online access to other loan applications, MPNs, calculators, loan information, and budgeting advice.
For added convenience, you can manage your account, make payments, change your address, choose repayment options, defer payments, and do more online at www.ManageYourLoans.com. You also receive combined billing for all Nellie Mae student loans (including the GradPLUS Loan) you have serviced by Sallie Mae.
How much can I borrow under the PLUS Loan program?
You can borrow up to the annual cost of attendance at your school, minus any other financial aid received.
For example,
- if your tuition, fees, room and board, books, and transportation cost $35,000, and
- you receive $20,500 in Stafford Loans or other financial aid,
- you are eligible to borrow up to $14,500 in the GradPLUS Loan.
Students are encouraged to apply for Federal Stafford Loans before applying for the GradPLUS Loan.
What is the interest rate?
The Nellie Mae GradPLUS Loan has a low, fixed interest rate of 8.5%, but you can lower your interest rate with our considerable borrower benefits.
Are there any fees?
When you take out the GradPLUS Loan, you are charged an origination fee of 3% and a default fee of 1% of the loan amount, which is deducted from each loan disbursement. (Your school may disburse loans in multiple installments.)
Is there an application deadline?
You must apply for the GradPLUS Loan before the end of the academic year for which the loan is being borrowed.
To have your GradPLUS Loan funds credited to your account before the school's billing deadline, you should apply before the start of the academic year, but after you receive your financial aid award letter.
What if my credit isn't great?
If your application doesn't initially meet the GradPLUS credit guidelines, our credit analysts can review your credit information and work with you to resolve outstanding credit issues.
You may also have the option to add an endorser (co-borrower) to your GradPLUS application.
After I apply for the GradPLUS Loan, how do I receive the loan funds?
Once your GradPLUS Loan is approved and processed, we send the funds directly to your school. The school credits your account to pay for tuition, fees, room and board, and other applicable charges. If money remains, the school releases it to you.
Download our free Credit Management Guide (PDF, 1.61MB) for current and future graduate students. It is designed to help you learn about responsible credit management skills and establish a solid financial footing before school, during school and, perhaps most importantly, during the transition from school to work.
