Guide to Education Grants

Did you know that in July of 2006 PLUS (Parent Loan for Undergraduate Students) loans, became available to graduate students to pay for their education?  Many people don’t!  In the past, there were limited choices for funding graduate school.  If grad students didn’t qualify for the full amount to pay for their education with Federal Stafford loans their only option was to secure a private loan or acquire the money through some other means such as a home refinance.  The great thing about PLUS loans for graduate students is that just about everyone qualifies!Why Graduate PLUS loans as opposed to private student loans for graduate students?

Low, federally capped interest rates
No collateral required
Based on credit score, not need
Get 100% of the money you need for tuition, fees, living expenses, books, room & board and other school-related expenses
Another benefit of the Graduate PLUS loan is that it comes with many of the repayment benefits of federal student loans such as:

Ability to consolidate student loans through the Federal Consolidation loan program after graduating
Extended repayment – Federal PLUS consolidation loan allows you to extend the repayment term from 10 years up to 30 years, drastically reducing your monthly repayment amount.
Income sensitive repayment – your monthly loan repayment amount can be tailored as a percentage of your gross annual income
How To Obtain a Graduate PLUS loan
1.  Since the PLUS loan is based on credit, you’ll want to take steps to get your credit in the best shape possible before you apply. 

Pay all outstanding debts that are 90 or more days past due
Establish terms with any open collection accounts
Take care of any unsatisfied judgments2.  Apply for a Federal Stafford Loan by filling out a FAFSA form.  The PLUS loan will cover any education expenses above and beyond the amount granted in Federal Stafford Loans.3.  Apply for the PLUS loan by completing the Federal PLUS Loan Application and Master Promissory Note (PLUS MPN).  Once your school certifies your eligibility and the guarantee is received, funds are then distributed through your school’s financial aid office.That’s it!  So if you’ve been dreaming about grad school but thought you could never afford it, the PLUS loan for graduate students opens a whole new world of opportunities.Your Turn to Talk!Have you been avoiding grad school because of the cost?  How did you or someone you know pay for graduate school?  Do you think the PLUS loan for graduate students is a smart way to pay for graduate education?  

This entry was posted on Wednesday, December 19th, 2007 at 7:57 am and is filed under Education Funding News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.