What are Grad Plus Loans? Unveiling the Essentials
Grad PLUS Loans are federal student loans available to graduate and professional students. They help cover education expenses not met by other financial aid.
Graduate and professional students can benefit from Grad PLUS Loans, a type of federal student aid that helps cover educational costs not met by other financial aid. These loans provide an additional source of funding beyond other financial aid options, making them an important resource for students pursuing advanced degrees.
With their higher borrowing limits, Grad PLUS Loans can help students meet the financial demands of graduate and professional programs, ensuring they can focus on their studies and career advancement.
Introduction To Grad Plus Loans
Grad PLUS Loans are a type of federal student aid for graduate and professional students. They help cover education expenses not included in other financial aid. Direct Graduate Unsubsidized Loans are another option for graduate students, with better terms and fees, but lower borrowing limits. Unlike some financial aid, student loans don’t count as income. The U.S. Department of Education offers Grad PLUS Loans, which can be used to cover remaining costs for graduate school. Overall, these loans play a critical role in funding graduate education.
Eligibility Criteria
Grad Plus loans are a type of federal student aid available to graduate and professional students. These loans can help cover education expenses not covered by other forms of financial aid. Eligibility criteria vary, but graduate or professional students may be eligible to apply for Grad Plus loans.
Academic Requirements
Grad Plus Loans are federal student loans available to graduate and professional students. These loans are designed to help cover education expenses not covered by other financial aid. To be eligible for Grad Plus Loans, students must meet certain academic requirements. This includes being enrolled at least half-time in a graduate or professional program at an eligible school. Additionally, students must maintain satisfactory academic progress as defined by their institution.
Credit History Considerations
Credit history is another important factor in determining eligibility for Grad Plus Loans. Unlike other federal student loans, Grad Plus Loans require a credit check. However, having a poor credit history does not automatically disqualify you from receiving a Grad Plus Loan. If you have an adverse credit history, you may still be eligible if you obtain an endorser who does not have an adverse credit history, or if you can document extenuating circumstances related to your credit history.
Application Process
Grad PLUS Loans are federal student aid available to graduate and professional students. These loans can help cover educational expenses not met by other financial aid. The application process involves completing the FAFSA and undergoing credit checks for approval.
Direct Graduate Unsubsidized Loans are the primary federal loans for graduate students, with better terms and fees compared to Grad PLUS Loans. However, they may not cover the full cost of attendance. Grad PLUS Loans are not considered taxable income, but other types of aid may have different treatment.
Offered by the U.S. Department of Education, Grad PLUS Loans can assist in covering remaining costs for graduate school. Eligibility for these federal student loans is designed specifically for graduate and professional students.
Comparing Grad Plus Vs. Unsubsidized Loans
Grad PLUS loans are federal loans available to graduate and professional students, offering a way to cover education expenses not met by other financial aid. These loans can be an essential resource, especially when comparing them to unsubsidized loans, as they provide higher borrowing limits and can help bridge the gap in covering the cost of attendance.
| Interest rates and terms | Grad PLUS Loans have a fixed interest rate of 7.08% for the 2019-20 academic year. Unsubsidized Loans, on the other hand, have a fixed interest rate of 6.08% for graduate students. The interest on Unsubsidized Loans starts accruing as soon as the loan is disbursed, whereas, with Grad PLUS Loans, the interest starts accruing after the student graduates or drops below half-time enrollment. |
| Borrowing limits | The borrowing limit for Grad PLUS Loans is the cost of attendance minus any other financial aid received. The maximum amount that can be borrowed is the difference between the cost of attendance and any other financial aid received. Unsubsidized Loans, on the other hand, have an annual borrowing limit of $20,500 for graduate students. The maximum amount that can be borrowed is $138,500, which includes any subsidized and unsubsidized loans taken out for undergraduate study. |
Repayment And Forgiveness
Grad Plus Loans are federal student loans available to graduate and professional students. They can be used to cover education expenses not covered by other financial aid. Grad Plus Loans have different terms and fees compared to Unsubsidized Loans, but their borrowing limits may not cover the full cost of attendance.
Additionally, Grad Plus Loans are not eligible for forgiveness programs.
| Repayment plans |
| Grad PLUS Loans offer a variety of repayment plans. The Standard Repayment Plan has fixed monthly payments for up to 10 years. Graduated Repayment Plan starts with lower payments that increase every two years over a 10-year term. Extended Repayment Plan allows you to pay over 25 years. Income-Contingent Repayment Plan (ICR) limits your monthly payments to a percentage of your discretionary income. Income-Based Repayment Plan (IBR) caps your monthly payment based on your income and family size. Pay As You Earn Repayment Plan (PAYE) limits your monthly payment to 10% of your discretionary income. Revised Pay As You Earn Repayment Plan (REPAYE) caps your monthly payment at 10% of your discretionary income. |
| Loan forgiveness opportunities |
| Grad PLUS Loans are not eligible for Public Service Loan Forgiveness (PSLF). However, you can still apply for forgiveness if you work for a nonprofit or government agency through the Teacher Loan Forgiveness Program or the Public Service Loan Forgiveness Program. |
Tax Implications
Grad PLUS Loans are federal loans available to graduate and professional students, helping cover education expenses not met by other aid. Unlike Unsubsidized Loans, Grad PLUS Loans have higher borrowing limits but with less favorable terms and fees. Additionally, Grad PLUS Loans are not considered taxable income, offering a financial advantage to borrowers.
| Grad Plus Loans vs. Taxable Income |
| Grad Plus Loans are a type of federal student aid that graduate and professional students can use to help pay for their education expenses. Unlike grants and scholarships, Grad Plus Loans are loans that must be repaid with interest. When it comes to tax implications, Grad Plus Loans are not considered as taxable income since they are loans that must be repaid. |
| Loans vs. Grants and Scholarships |
| Unlike Grad Plus Loans, grants and scholarships are typically not required to be repaid. However, some portions of grants and scholarships may be considered as taxable income depending on how the funds are used. For example, if the funds are used for room and board, they may be considered as taxable income. On the other hand, if the funds are used for tuition and fees, they may not be considered as taxable income. |
Frequently Asked Questions
What Is A Grad Plus Loan?
A Grad PLUS loan is a type of federal student loan available to graduate and professional students. It can be used to help cover the cost of college or career school expenses that are not covered by other financial aid.
These loans have certain eligibility requirements and can be obtained through the U. S. Department of Education.
What Is The Difference Between A Grad Plus Loan And A Unsub Loan?
A Grad PLUS loan is a type of federal student loan available to graduate and professional students, while an unsubsidized loan is a primary type of federal loan used by graduate students. Grad PLUS loans have higher borrowing limits but generally higher fees compared to unsubsidized loans.
Can Grad Plus Loans Be Forgiven?
Grad Plus loans are not eligible for forgiveness. They are federal loans for graduate students.
Do Grad Plus Loans Count As Income?
No, Grad PLUS loans do not count as income. They are a type of federal student aid in the form of student loans.
Conclusion
Grad Plus Loans are federal student loans available to graduate and professional students. They can be used to cover education expenses not covered by other financial aid. While they have generally better terms and fees compared to other loan options, their borrowing limits may not cover the full cost of attendance.
It is important to carefully consider the requirements and implications before applying for a Grad Plus loan.