10.16.06 | Parent Loan for Graduates?
Ok, so it’s not really new, but the Graduate PLUS Loan became available to students on July 1, 2006 and it, really, gives all graduate students a great opportunity to take out an easy, Federally backed loan for a graduate level study. Historically, the Parent PLUS (Parent Loan for Undergraduate Students), as the name implies, was a loan that a parent could take out for their undergraduate student. Makes sense, right? Well now, the Grad PLUS loan (ignore the acronym meaning this time) is for a graduate student to take out a loan, up to the cost of education, on their own signature. No parent/co-signer required. Graduate students still can borrow the $18,500 per year in Stafford loan funds if awarded that aid but, so many graduate programs cost more than that. To bridge that gap, the Graduate PLUS loan can help cover up to the cost of education – at a fixed 8.5% interest rate (and discounts even apply) it is much more cost effective than tapping into savings, using income or credit cards. Again, it’s Federally backed – meaning you get full Federal benefits (deferment, forbearance, etc.) So, if in five years you are going through a rough time financially, you can defer it If you join the military, you can defer it. Think of it like this, a full cost of education loan at a competitive interest rate and many great benefits. What’s not to like?
The Student Loan Help blog is sponsored in part by:
