PLUS
Loans
for
Graduate/Professional Students |
| EFSI
GradPLUS Benefit1: |
| Borrowers are
eligible for the following back-end
benefit: |
| • |
0.25%
interest rate reduction with ACH |
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° |
To retain
the benefit, the borrower must continue
to remain enrolled to make payments
via ACH, may not have payments returned
for insufficient funds, and may not
default on the Loan. |
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What
are Federal PLUS Loans?
Federal PLUS Loans, along with Stafford Loans, are part
of a group of loan programs referred to as the Federal
Family Education Loan Program (FFELP).
Due to recent legislative changes, PLUS loans, formerly
only for parent borrowers, are now being made available
to graduate and professional students.
Graduate students can borrow PLUS to supplement the
subsidized and unsubsidized Federal Stafford Loans that
are currently available. Student borrowers are still
encouraged to first borrow the maximum (based on eligibility
and determination of need) in Stafford Loans before
borrowing the PLUS. |
Features
and Advantages of the PLUS Loan for Graduate/Professional
Students:
- Borrow up to the full cost of attendance (less
other financial aid)
- No annual or aggregate loan limits
- Defer payments while in school (must maintain at
least half-time enrollment)
- A fixed interest rate of 8.5% (effective for loans
disbursed on or after July 1, 2006)
- Apply on your own; no co-signer required
- Combined billing with Stafford loans
- Convenient online pre-approval and application process
- Lower origination fees - Fixed 3% origination fee
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HOW DOES THE FEDERAL GradPLUS LOAN
PROGRAM COMPARE TO TYPICAL ALTERNATIVE LOANS?
| |
GradPLUS
Loan |
Private
Alternative Loan |
Interest
Rates
The rate that you are charged to borrow
the funds. It is a percentage of the amount loaned. |
Fixed
at 8.5%. |
Variable
rate depending on credit score. Rate based on Libor
or Prime. |
Origination
Fees
The percentage of the loan amount you are
charged as a fee for the loan |
Fixed 3% standard
origination fee. |
Fees vary
depending on program and may be higher than GradPLUS
fee. |
Default Fee
The percentage of the loan amount you are
charged as a fee paid to the guarantor
|
0% to 1% Default fee depending
on the guarantor. |
Not Applicable |
Borrowing
Limits
The amount of money you can borrow on a
yearly basis to fund your education |
Limits
are up to the cost of education, minus other financial
aid received. No annual or aggregate limits |
Limits
are up to the cost of education, minus other financial
aid received |
Accrued
Interest
The interest that has accumulated since the inception
of the loan |
Accrued interest
capitalizes only ONCE at final repayment |
Accrued interest
may be capitalized monthly, quarterly, or once at
repayment |
Credit
Approval
The process that provides lenders with
financial information about potential borrowers |
Simple
credit check based upon federal standards (easier
to qualify); no debt-to income ratios or credit
scoring; No cosigner required |
Borrowers
must pass a comprehensive credit check to qualify
for the loan;osigner may be required. |
Death/Disability
Insurance
The forgiveness of a loan in the event of death/disability |
Federally
insured against death and disability |
NOT federally
insured against death and disability |
Deferment/Forbearance
Postponing or reducing payments due to financial
circumstances |
In-school
deferment through graduation - payments begin upon
program completion or borrower dropping below half-time
status |
Limited
deferment/
forbearance options available
|
Consolidation
The process of combining multiple student loans
into one loan, with one fixed interest payment |
Ability to
consolidate GradPLUS loans with other FFELP loans |
Limited consolidation
options available |
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| For more information, contact us at: |
EFSI
P.O. Box 14445
Austin, TX 78761-4445
1-888-312-EFSI
(3374)
E-mail: customer.service@efsi.net
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1 - Borrower Benefit is applicable
for loans with first disbursements on or after
2/15/2008. Interest rate reductions may not apply
during periods of deferment or forbearance. We
reserve the right to modify or discontinue benefits
programs at any time without notice. Any termination
or modification will not affect the terms of loans
already made.
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