The GradPLUS loan is a federally guaranteed, credit-based loan available to assist graduate/professional students in financing their educations. The Financial Aid Office is recommending that students
* who require additional funding after other aid, including Stafford Loans consider borrowing through the GradPLUS loan program. Please continue to refer to this web site for additional information as it comes available.
On this page: * New Jersey residents should consider the NJ Class Loan as an alternative option to GradPLUS.
Important Facts
- Fixed 8.5% Interest Rate for 6 months.
- Repayment begins after the loan is fully disbursed. However, students enrolled at least half-time will automatically be put in an in-school deferment.
- 3% Origination Fee and 1% Default Fee charged at disbursement.
- Credit check based 'no adverse credit'; income and credit score will not affect eligibility. (More information: Credit Criteria)
- Can borrow up to difference between cost of attendance and other financial aid. (same as alternative loans)
Comparison Table of GradPLUS vs Private Loan Programs
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|
|
| The following table compares GradPLUS vs. Private Loan Programs |
| Interest Rate |
8.5% Fixed |
Variable, most change quarterly and have no interest rate cap |
| Repayment Begins |
6 months after last date of attendance. |
6 to 9 month grace period |
| Fees |
3% Origination Fee and 1% Default Fee at each disbursement
|
Varies according to lender/program |
| Consolidation Options |
Can be consolidated with other Federal loans, including Stafford |
Not eligible for consolidation with Federal loans, including Stafford |
Credit CriteriaA credit check is necessary and must be obtained by the lender from at least one national credit bureau. The credit check is valid for 90 days. A student must have "no adverse credit" as defined by the Department of Education. (
Here is a detailed definition of adverse credit.) Credit score and debt/income are not considered.
Students not able to meet credit criteria may apply with an Endorser. (
Here is a detailed definition of endorser.) However, students are encouraged to apply initially on their own.
information provided by AES/PHEAA and the US Department of Education.
Application ProcessYou will be required to complete a PLUS Master Promissory Note for each year, and each new loan within the year, that you are borrowing a GradPLUS loan at Widener Law. Widener Law's Financial Aid Office is set up electronically with most lenders and service providers. You are not required to borrow through any of the lenders listed on this web site. As stated previously, it is advisable to research any incentives offered thoroughly before choosing a lender.
Lender Information
The Stafford Loan program contains mandatory origination and default fees which must be paid to borrow through the program. Prior to January, 2008, most lenders and guarantors participating in the program paid those fees as an incentive to borrowers to select their loan product. Due to recent legislation and current market conditions, most lenders and guarantors are no longer paying the fees for the students.
While it is not Widener’s policy to recommend one lender over another, the University has compiled a list of lenders and lender codes our students used in the 2008-2009 academic year to finance their federal loans. This list is not exhaustive and students are encouraged to do their own research and select a lender of their choice. Borrowers are free to select any lender they choose including those not listed.
For additional information, we recommend that you investigate the lender's website. Another source of information is American Education Services/Pennsylvania Higher Education Assistance Agency (AES/PHEAA) www.aessuccess.org. This organization is the designated guarantor for the state of Pennsylvania and Delaware. Please be aware that most credit unions will not lend to individuals who are not members.
2008-2009 Graduate PLUS Lenders List (.pdf)
Definitions:
'Adverse Credit' - Adverse credit is defined as the applicant being 90 days or more delinquent on a debt or having been subject to a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of an Federal Student Aid debt.*
- The absence of any credit history is not considered adverse credit.*
- Lender must obtain a credit report on the borrower from at least one national credit bureau.
- If student is turned down for credit, the student may chose to appeal the decision to the individual's lender (each lender will have a different appeal process) or re-apply with an Endorser.
'Endorser'
- An endorser is someone who agrees to repay the loan if the borrower fails to do so. The endorser must be a creditworthy U.S. citizen, permanent resident or other eligible noncitizen. If the student secures an endorser for the Federal Graduate PLUS Loan, his or her endorser must sign a new Endorser Addendum for each loan requested during the period in which the student has adverse credit.