Federal Stafford loans are offered to graduate students at a low fixed interest rate. Students must be enrolled at least half time (6 units) to be eligible. Repayment begins six months after the student leaves school or drops below half-time status. Students must complete Entrance Counseling and a Master Promissory Note before they can receive their first disbursement (See section below).
The Federal Direct Loan Program offers the following types of loans to graduate students:
- Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. Student needs to have a FAFSA on file.
- Grad PLUS: Loans for graduate students. Grad PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. To apply for the Graduate PLUS loan, log into www.studentloans.gov to complete the application process. The student also needs to complete a PLUS Loan Master Promissory Note on the same website. (More info below.)
Click here for more information about Federal Loans
Current Interest Rates:
Graduate/Professional Unsubsidized Loans - 6.60% (Fixed - valid July 1, 2018 to June 30, 2019)
*Upcoming Interest Rate for Graduate/Professional Unsubsidized Loans - 6.08% (Fixed - valid July 1, 2019 to June 30, 2020)
Grad PLUS Loan - 7.60% (Fixed - valid July 1, 2018 to June 30, 2019)
*Upcoming Interest Rate for Grad PLUS Loans - 7.08% (Fixed - valid July 1, 2019 to June 30, 2020)
A loan fee (or origination fee) is an expense of borrowing a Federal Loan (sub/unsub/PLUS). It is the percentage of the amount of each loan the borrower receives and is subtracted proportionately from each disbursement. Federal Loan originated/disbursed on 10/1/2018 to 9/30/2019, the following loan fees will be applied:
Unsubsidized Loans – 1.062% (10/01/2018 to 09/30/2019)
Grad PLUS Loan – 4.248% (10/01/2018 to 09/30/2019)
Example: $20,500 Unsubsidized loan for the 2018/2019 school year:
FA18 Disbursement - $6,834 less 1.062% = $6,761
SP19 Disbursement - $6,833 less 1.062% = $6,760
SU19 Disbursement - $6,833 less 1.062% = $6,760
Total Received - = $20,284
Graduate Total = $138,500
This includes undergraduate federal loans.
Entrance Counseling & Master Promissory Note
Both are required for first time loan borrowers and also required for first time GRAD PLUS Loan borrowers.
Entrance Counseling - an interactive session that shows your rights and responsibilities as a loan borrower.
Master Promissory Note - a legal agreement between the borrow and lender to repay the loans.
Exit counseling is required when you graduate, leave school, or drop below half-time enrollment. Exit counseling provides important information you need to prepare to repay your federal student loan(s).
GRAD PLUS Loan
The GRAD PLUS loan is available to graduate students who need additional loans outside their Unsubsidized loans (FAFSA required). It can be used to help pay for any remaining educational expenses.
To be eligible for the GRAD PLUS loan, the borrower:
- Does not have adverse credit history, or
- Has an adverse credit history but has obtained an endorser who does not have and adverse credit history and completes PLUS Loan Counseling offered by the Dept. of ED, or
- Has an adverse credit history but documents to the satisfaction of the Dept. of ED that extenuation circumstances exist and completes PLUS Loan Counseling offered by the Dept. of ED.
Click Here to complete the PLUS Loan Application, PLUS Loan Master Promissory Note, Entrance Counseling, or PLUS Counseling.
Click Here for more information.
***Graduate PLUS Loans for the 19/20 Award Year are now available***