|
The Graduate PLUS loan program is applicable to graduate students. This program has a federally backed student loan guarantee by the government. This loan program is similar to a private loan except for the fixed rate of interest and federal guarantee. The students are allowed to borrow not only for the educational expenses but also for room and board expenses, supplies, and lab and travel expenses.
Interest on Grad PLUS Loans
Interest is charged from the date of disbursement till the date of full payment. The rate is fixed at 8.5%.
Credit History
Loan applicants to Grad PLUS Loans are not expected to have an adverse credit history. These loans are not sanctioned based on FICO score or debt to income ratio.
Borrowing Limit on Grad PLUS Loans
Per annum limit on Grad loans is equal to the cost of attendance less the amount of financial aid already received by the student.
Grad PLUS Loan Disbursement
The approved loan amount is sent to your school, which in turn will require you to endorse the disbursement check back to the school. Amount so disbursed will first be used to toward tution fees followed by other expenses. Any amount remaining unutilized will be sent back to in cash or check, which is required to be used for educational purposes.
Need for a Co- Signer
The need for a co-signer arises only when the credit score of the student applying for the loan is insufficient.
Cancellation of Graduate PLUS Loans
The school authorities are required to notify you on receipt of the loan amount and the credit given to your account not earlier or later than 30 days and you are required to convey your reservation to cancel the loan within 14 days after being notified or on the first day of the payment period. Where the funds are directly received by the student by way of a check, you can refuse the loan simply by not endorsing it.
|
