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GRAD PLUS Loan
Program
What is a Federal Grad PLUS Loan?
The Federal Grad PLUS Loan is a government-backed, no collateral loan with a fixed interest rate of 8.5%. Eligible students may borrow up to the full annual cost of attendance, minus any other financial aid they receive. The Grad PLUS Loan is not based on financial need.
Am I eligible for a Federal Grad PLUS Loan?
You must be enrolled or accepted for enrollment in a master's degree program at least half time in a U.S. college, university or other eligible postsecondary institution. You must also be a U.S. citizen or eligible noncitizen.
Do I need to complete the FAFSA in order to apply for the Grad PLUS Loan?
Yes, you are required to complete this free application for federal student aid. You can complete the application at ww.fafsa.ed.gov
Do I make too much money to qualify for the Grad PLUS Loan?
No. Unlike other types of financial aid, the Grad PLUS Loan is not need based. However, you cannot borrow more than the cost of attendance, minus other financial aid received.
How much money am I eligible to borrow?
Unlike other types of financial aid, the Grad PLUS Loan is not need based. The maximum eligibility is determined by the Cost of Attendance minus any financial aid that the student has been awarded. In some cases, the Grad PLUS loan can replace all or a portion of the expected resources. If the student will not be receiving financial aid of any kind, the student can borrow the full cost of attendance.
Is there a benefit to submitting the Grad PLUS loan Application and Promissory note to my lender early?
In many cases, yes. Many students simply want the peace of mind knowing that they have been preapproved early in the process. Also, students may have credit issues that must be resolved before final approval.
Do I need to know the amount that I want to borrow before I apply for preapproval?
No. The school will determine the maximum amount you are allowed for a Grad PLUS Loan. If you requested an amount that is too high, the school will automatically reduce your requested amount to the maximum amount allowed. This amount is calculated by subtracting any grants, aid, scholarships, Federal Direct Student Loans and/or other loans awarded to you from the total cost of attendance.
Can I find out in advance if my credit check will be approved?
Yes. Most Grad PLUS lenders offer credit pre-approval to all students at no cost.
Am I required to take a Grad PLUS Loan upon application?
No. Approval for a Grad PLUS Loan does not commit you to taking out the loan. If approved, you may contact your lender at any time before disbursement to cancel or reduce the loan request.
How will I receive my Grad PLUS Loan funds?
The Grad PLUS Loan is disbursed directly to the school. If the loan is a full year loan, the student will receive one check during the Fall semester and one check during the Spring semester. If the loan is a one-semester loan, the study will receive one check shortly after the beginning date of the semester.
If the student has no outstanding financial obligations to SF State, the university mails a check directly to the student or initiates a direct deposit.
If the student owes money to SF State, the university deducts all obligations and forwards a balance check to the student or initiates a direct deposit.
Factors to keep in mind when choosing a lender:
Customer Service
Stability of Lender
If Loans are Held or Sold
Borrower Benefits
On-line Lender Services
Repayment Options
Security
Debt Management Options
Additional Services
Step 1 -
Evaluate potential lenders. Factors to keep in mind when evaluating a lender: customer service; stability of lender; if loans are held by lender or sold; borrower benefits; on-line lender services; repayment options; security; debt management options; and additional services.
See Chart
Step 2 -Contact the lender to obtain a pre-approval or
denial by phone or on-line.
Step 3 -The lender will send SF State an electronic notice of your pre-approval or denial.
Step 4 -Your lender will send you a pre-printed
Application/Promissory Note or you can fill one out on-line.
Step 5 -SF State will electronically certify your
eligibility for the pre-approved loan.
Step 6 -Your lender will send the funds to SF State.
Step 7 -SF State will release the funds once requirements for student enrollment are confirmed. Most Alternative lenders will electronically transfer funds to SF State.
If the student has no outstanding financial obligations to SF State, the university mails a check directly to the student or initiates a direct deposit.
If the student owes money to SF State, the university deducts all obligations and forwards a balance check to the student or initiates a direct deposit.
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Last modified 06/06/2008
by Loan Nguyen.
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