Federal Graduate PLUS Loan at George Mason University
The Federal Graduate PLUS Loan, part of the Federal Family Education Loan Program, is a low-interest loan designed to provide graduate and professional students with additional funds to finance their college education. This loan is a type of federal financial assistance that must be repaid.
Federal Graduate PLUS Loans are not based on financial need but are based on credit-worthiness.
- Who is eligible to apply?
- How do I apply for a Federal Graduate PLUS Loan?
- How much can I borrow as a graduate or professional student?
- Why does it seem that I received less money than I actually borrowed?
- How often can I apply to borrow?
- What is the interest rate for Federal Graduate PLUS Loans?
- How many hours must I be enrolled to be eligible to borrow a Federal Graduate PLUS Loan?
- How are "full-time" and "part-time" defined?
- When do I begin repaying the Federal Graduate PLUS Loan?
- Can I get a deferment on repayment of the Federal Graduate PLUS Loan?
- How are Federal Graduate PLUS Loans disbursed?
- What happens if I drop classes or withdraw after I have received Federal Graduate PLUS loan funds?
- What if I have prior Graduate PLUS Loans under the FFEL program?
- Who will the lender be for Federal Graduate PLUS Loans?
Who is eligible to apply?
Beginning July 1, 2006, graduate and professional students who have used all their Stafford loan eligibility for the year are eligible to apply for a new version of the Federal PLUS loan called the Federal Graduate PLUS loan to cover up to the cost of attendance less any other aid received.
How do I apply for a Federal Graduate PLUS Loan?
All students who are interested in applying for a Federal Graduate PLUS Loan at George Mason University must first complete the Free Application for Federal Student Aid. Once George Mason University has received your financial aid application information, we will send the student one of two types of notification.
If you are eligible for need-based financial aid, you will receive an award letter which will indicate your eligibility for the Federal Subsidized Stafford Loan and any other aid you are eligible to receive. In this scenario, you may then apply for up to the maximum amount of Stafford loan through both the Subsidized and Unsubsidized Stafford loans. If your expected cost of attendance has not been met by the combination of these two loans and if you need additional funds, you may apply for a Federal Graduate PLUS Loan.
To apply for a Federal Graduate PLUS Loan, you can either go to our primary loan servicer's web site at http://opennet.salliemae.com and apply on-line using one of our recommend lenders or you can contact the lender of your choice, request a Graduate PLUS loan application and submit the application to our office for certification.
How much can I borrow as a graduate or professional student?
You may apply for a Federal Graduate PLUS Loan for an amount up to the "cost of attendance" less any other aid (including Federal Subsidized/Unsubsidized Stafford Loan) that you are eligible to receive. There is no borrowing limit based on a determination of your financial need.
Why does it seem that I received less money than I actually borrowed?
The Federal government charges an insurance fee against all loans that it guarantees which is equal to 3% of the gross loan proceeds. This insurance fee is deducted proportionally from the loan proceeds before they are disbursed. Some lenders may absorb the cost of the fee and charge nothing to the borrower.
How often can I apply to borrow?
Once you parents have borrowed up to the cost-of-attendance less other aid, you must wait to the beginning of the next academic year to be eligible for additional loan funds. You must be enrolled at least half-time during the period that the loan is to cover and must be making satisfactory academic progress toward your degree.
What is the interest rate for Federal Graduate PLUS Loans?
For any Federal Graduate PLUS Loans disbursed after July 1, 2006, the interest on the PLUS loan will be fixed at 8.2%
How many hours must I be enrolled to be eligible to borrow a Federal Graduate PLUS Loan?
You must be enrolled for at least half-time each term to be eligible to borrow under the Federal Graduate PLUS Loan program. Half-time for graduate and professional students at George Mason University is generally defined as 4.5 credit hours. Since "cost-of-attendance" varies with enrollment status, the amount of Federal Graduate PLUS Loan eligibility will be different if you are enrolled full-time than if you are enrolled part-time.
How are "full-time" and "part-time" defined?
Graduate Students |
|
Credit Hours |
Eligibility Status |
|---|---|
0 - 4 |
generally not eligible for Graduate PLUS |
4.5 - 6 |
eligible at half-time level |
7 - 8 |
eligible at three-quarter time level |
9+ |
eligible at full-time level |
When do I begin repaying the Federal Graduate PLUS Loan?
Repayment of the Federal Graduate PLUS Loan begins on the day after the loan is "fully" disbursed. The first payment will be due within 60 days after the "final" loan disbursement. (Note that interest on the Federal Graduate PLUS accumulates from the date of the "first" loan disbursement.)
You will pay both principal and the interest that accumulates. During periods of deferment and forbearance (if you are eligible), you will not have to pay any principal, but interest will continue to accumulate. This means that your loan principal will increase, unless you choose to pay the interest quarterly during the deferment or forbearance.
Can I get a deferment on repayment of the Federal Graduate PLUS Loan?
To qualify for a deferment, you must meet one of the following conditions:
- be enrolled at least half-time in a program of study that meets the U.S. Department of Education's requirements for program eligibility. (Note: You may not defer repayment while in a medical internship or residency program, except a residency program in dentistry.)
- be enrolled in a graduate fellowship program approved by the U.S. Department of Education.
- be enrolled in a rehabilitation training program for persons with disabilities that is approved by the U.S. Department of Education.
You may also be eligible for deferment for a period of up to three years if you are:
- unemployed and seeking but cannot find full-time employment
- experiencing or will experience economic hardship (talk to your lender or loan servicer for more information on this deferment.)
Additional questions regarding eligibility for deferment of Federal Graduate PLUS Loan repayment should be directed to the lender/servicer of the loan(s).
How are Federal Graduate PLUS Loans disbursed?
The Federal PLUS Loan will be disbursed in at least two payments and generally will be credited to your student account. Any leftover funds will be paid to you by check. All first time borrowers must attend an Entrance Interview, which can be done online, before funds can be disbursed to the student.
What happens if I drop classes or withdraw after I have received Federal Graduate PLUS loan funds?
If your classes were paid for with funds from a Federal Graduate PLUS Loan and during the drop period you reduce the number of credit hours below full-time, any refund due from the reduction in your charges may go to repay loans with funds first going to the Graduate PLUS Loan and then to the Unsubsidized and Subsidized Stafford Loans. The refund would reduce the corresponding loan debt by the refunded amount.
If your classes were paid for with funds from a Federal Graduate PLUS Loan and then you withdraw from all of your classes or drop below half-time, any refund due to you up to the amount of your loans, would go to repay your loans. The refund would reduce corresponding loan debts by the refunded amount. Additionally, the Department of Education would be notified that you have dropped below half-time or have left school and any pending disbursements would be canceled. A formal refund calculation will be done under the Return to Title IV Refund Calculation process.
What if I have prior Graduate PLUS Loans under the FFEL program?
You may want to consider a Federal PLUS Consolidation Loan. Consolidation means you make only one monthly payment to cover all your loans, including PLUS Loans under the Federal Family Education Loan Program. There may be several advantages for you if you consolidate. Because the interest rate is the same under PLUS Loans, you may be able to pay less interest than you are paying on you current loans. You can also get the benefit of choosing a repayment plan that best suits your financial circumstances, and you may be able to reduce your monthly payment.
For more information about Consolidation Loans, contact your student loan lender or check out these on-line resources:
- Consolidation loan information from www.finaid.org
- Consolidation loan information from www.salliemae.com
- Consolidation loan information from mapping-your-future.org
Who will the lender be for Federal Graduate PLUS Loans?
The lender for the Federal Graduate PLUS Loan will be a bank, credit union, or other lending institution that you will choose at the time you apply for the loan.