GradPLUS Loan
Graduate students may participate in the federal
GradPLUS Loan program. Students must first use their
maximum Direct Stafford Loan eligibility prior to borrowing the GradPLUS (Direct
Stafford Loans have more favorable benefits).
Under this federally guaranteed loan program, graduate students may borrow
up to the total amount
of education costs less any financial aid. GradPLUS
borrowers will be subject to credit approval.
NOTE: In order to use GradPLUS Loan proceeds for
Tufts bill payment, the loan
application should be completed via the process below
at least 3 weeks in advance of the billing due date.
Once the application process is complete and the loan
approved, funds
will be automatically credited (minus fees) to the
student account.
Graduate PLUS Loan borrowers are required to
complete a FAFSA and borrow their maximum Direct
Stafford Loan first before receiving this loan.
When considering a GradPLUS loan, keep the following points in mind:
- Interest rate on a GradPLUS Loan is fixed at 7.9%. The rate is determined by the federal government.
- Origination/Guarantee fee of 4% will be
assessed. Borrowers receive an up front 1.5%
fee rebate that is retained if the first 12 monthly
payments are made on time. The net fee is
therefore 2.5%. Note: As of July 1, 2012, the fee
rebate benefit will be discontinued.
- Borrower must also be a U.S. citizen or permanent resident, and must be making satisfactory academic
progress towards a degree.
- Borrower must be credit worthy, as determined by
the absence of adverse credit on credit history.
- Applicants may borrow up to the cost of attendance less other financial aid.
- Most GradPLUS loans are made to cover fall and spring semester costs. The loan funds are disbursed
(minus fees) in two equal payments, 1/2 for the fall semester and 1/2 for the spring semester.
- The maximum repayment term is 10 years.
- Repayment begins 60 days after the loan is fully
disbursed, but may be deferred while the student is
enrolled at least half time.
- If a GradPLUS is borrowed and the borrower is subsequently totally, permanently disabled, or
deceased, the loan is forgiven.
GradPLUS Loan Application Process
Application for a GradPLUS Loan should be started about
three weeks prior to the bill due date.
It is a two step process:
1. Print out, complete, and return the form
below to the Tufts Aid Office, Dowling Hall, Medford
MA 02155.
2012-13
Federal Direct GradPLUS Request Form
2013-14 Federal Direct GradPLUS Request Form
2. Complete a GradPLUS Master Promissory Note (MPN)
on line at
www.studentloans.gov
The
borrower will be required to use his/her U.S.
Department of Education PIN to complete the online MPN. Borrowers who do not have, or cannot
recall, their PIN should go to
www.pin.ed.gov
3. Complete
PLUS Loan
Entrance Counseling (unless you have already
completed the Combination Stafford and PLUS
loan counseling) on that same linked page.
We will process your loan electronically and you
will be notified by the Direct Loan Servicing Center
about whether your loan is approved or
denied. When the loan is approved, and the
above steps have been completed, the funds
will be automatically credited to the student
account.
Deferments
For a Direct Loan Deferment information, click
here.
In general, the same deferment provisions that apply
to Stafford Loans apply to PLUS Loans. Because PLUS
Loans are unsubsidized, parents and graduate and
professional degree students will be charged
interest during periods of deferment. If they don’t
pay the interest as it accrues, it will be
capitalized* (added to their outstanding principal*
balance). PLUS borrowers may defer repayment while
the student is enrolled at least half-time.*
Detailed information about postponing
repayment (deferment, forbearance, etc.)
can be found
here.
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