Grad PLUS Loan
What Is a Grad PLUS Loan?
Grad PLUS loan is a federal Direct PLUS Loan available to graduate and professional students to cover education expenses not met by other financial aid.
Grad PLUS loans require a credit check.
Borrowers may borrow up to the full cost of attendance minus other aid.
Why It Matters
Grad PLUS loan:
- Provides funding beyond annual unsubsidized limits
- Requires credit review
- Accrues interest immediately
Grad PLUS loans often carry higher interest rates than subsidized or unsubsidized loans.
How Grad PLUS Loan Works
Grad PLUS loan is issued directly to the graduate or professional student after credit approval.
Example: A medical student with tuition exceeding unsubsidized loan limits may borrow additional funds through a Grad PLUS Loan.
Interest accrues immediately upon disbursement.
Repayment typically begins after enrollment ends unless deferment is requested.
Grad PLUS Loan vs. Parent PLUS Loan
Grad PLUS Loan → Borrowed by graduate student
Parent PLUS Loan → Borrowed by parent
Borrower responsibility differs.
FAQs About Grad PLUS Loans
Is financial need required?
Grad PLUS loans are not need-based but require credit approval.
Can Grad PLUS loans qualify for PSLF?
Eligible Direct Loans may qualify under PSLF rules.
Does interest capitalize?
Unpaid interest may capitalize at certain repayment transitions.
Related Terms
- Direct PLUS Loan
- Unsubsidized Loan
- Federal Student Loan
- Income-Driven Repayment
- Capitalized Interest
