Understanding the Benefits of a Graduate PLUS Loan for Graduate Students

Student loans are a common way for students to finance their education, especially for graduate students who may need extra funds for tuition, books, and other expenses. One type of student loan that graduate students can consider is a Graduate PLUS Loan. In this article, we will discuss the benefits of a Graduate PLUS Loan and why it may be a good option for graduate students.

What is a Graduate PLUS Loan?

A Graduate PLUS Loan is a federal student loan that graduate students can use to help pay for their education. Unlike other federal student loans, such as Direct Subsidized Loans or Direct Unsubsidized Loans, a Graduate PLUS Loan is available to graduate students who need to borrow more money than what is offered through these other loan programs. Graduate PLUS Loans have a fixed interest rate and offer flexible repayment options, making them a popular choice for many graduate students.

Benefits of a Graduate PLUS Loan

Higher loan limits

One of the main benefits of a Graduate PLUS Loan is that it allows graduate students to borrow more money than what is available through other federal student loan programs. Graduate students can borrow up to the cost of attendance, minus any other financial aid they receive. This can be especially helpful for graduate students who may need extra funds to cover the cost of tuition, books, and living expenses.

Fixed interest rate

Another benefit of a Graduate PLUS Loan is that it has a fixed interest rate, which means that the interest rate will not change over the life of the loan. This can help graduate students budget and plan for their loan payments, as they will know exactly how much they need to pay each month. Additionally, the interest rate on a Graduate PLUS Loan is typically lower than what is offered through private student loans, making it a more affordable option for graduate students.

Flexible repayment options

Graduate PLUS Loans offer a variety of repayment options for graduate students to choose from. Graduate students can select a plan that works best for their financial situation, whether it be a standard repayment plan, an income-driven repayment plan, or a graduated repayment plan. This flexibility can make it easier for graduate students to manage their loan payments and avoid falling behind on their loans.

Who is eligible for a Graduate PLUS Loan?

To qualify for a Graduate PLUS Loan, graduate students must meet the following criteria:

• Be enrolled in a graduate or professional program at least half-time


• Be a U.S. citizen or eligible non-citizen


• Not have an adverse credit history

If a graduate student meets these eligibility requirements, they can apply for a Graduate PLUS Loan through the Free Application for Federal Student Aid (FAFSA) website. The student will need to complete a credit check as part of the application process, but approval is not based on credit score or income.

Is a Graduate PLUS Loan right for you?

Deciding whether or not to take out a Graduate PLUS Loan is a personal decision that should be based on your individual financial situation and educational goals. Before taking out a Graduate PLUS Loan, consider the following factors:

• Your total cost of attendance and how much financial aid you have already received


• Your expected future income and ability to repay the loan


• Your other options for financing your education, such as scholarships, grants, or private student loans

If you are unsure whether a Graduate PLUS Loan is right for you, consider speaking with a financial aid advisor at your school for more information and guidance.

Conclusion

Overall, a Graduate PLUS Loan can be a valuable option for graduate students who need additional funds to finance their education. With higher loan limits, a fixed interest rate, and flexible repayment options, a Graduate PLUS Loan can help graduate students achieve their educational goals without breaking the bank. If you are a graduate student considering a Graduate PLUS Loan, be sure to carefully evaluate your options and make an informed decision that is right for you.

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