Federal Graduate PLUS Loan

Federal Graduate PLUS Loans are now available to graduate and professional students. This loan is not based on financial need as students can use the Federal Grad PLUS to meet unmet financial need and/or replace an expected family contribution. Northwestern University participates in the Federal Graduate PLUS Loan program under the Federal Family Educational Loan Program (FFELP) and works with various lenders to provide these loans to students. All lenders participating in the Federal Graduate PLUS Loan program must set the same interest rate of 8.5%. Some lenders may also offer repayment incentives and discounts for electronic and on-time payments. Students should contact the lender of their choice to determine what incentives they offer.

The federal Graduate PLUS loan is approved based off of credit history; however, these loans generally have a less-stringent credit review than private, non-federal loans. Although it is not based off of a credit score, approval for the Federal Graduate PLUS loan is largely based on on-time payments to creditors (ex. cell phone bills, credit cards, utilities, etc.) A Federal Grad PLUS borrower may not have an adverse credit history. A credit check is completed upon application for this loan. Borrowers with an adverse credit history may apply for the loan with a co–signer (also called endorser) who does not have an adverse credit history.

Terms and conditions of the Federal Graduate PLUS Loan include:

Annual maximum for the Federal Grad PLUS is the Cost of Attendance less other Estimated Financial Aid. There currently is no aggregate maximum on this loan.
Available to U.S. citizens or permanent residents
Fixed interest rate of 8.5%; however, some lenders offer borrower incentives that may lower the interest rate in repayment with borrower incentives.
The interest on the PLUS is paid by the student and not the federal government.
Interest begins to accrue when the funds are disbursed to the student. Student may choose to make regular interest payments while in school, or have the interest capitalized at repayment
Lenders may charge up to 1% guarantee fee and must charge 3% origination fee from principal at disbursement
Maximum loan amount equals cost of attendance minus Stafford loans, Perkins loans, and any scholarships.
Repayment begins 90 days after the final disbursement, but students can request from lenders for an in-school deferment as long as you are enrolled at least half-time. Most lenders will do this automatically and repayment can then begin six months after graduation, withdrawal from school, or when a student drops below half-time enrollment. However, it is important to speak with the lender for their specific policy.
Depending on the loan limit, the maximum repayment period can last up to 25 years if the loan is not consolidated with other federal loans. If the loan is consolidated with other federal loans, the repayment can extend up to 30 years depending on loan limit.

Terms and conditions are subject to change according to federal law.