PLUS
Loans
for
Graduate/Professional Students |
| GradPLUS
Borrower Benefits1: |
| •
0% to 1% Default fee, depending on the guarantor
|
| » |
Borrower is responsible
to pay the Default fee if not waived by the
guarantor |
| Borrowers
are also eligible for the following back-end
benefits: |
| •
0.50% interest rate reduction upon making
the first payment on-time |
| » |
To retain the benefit, borrower must make
and have payments posted to the account no
later than the scheduled due date |
| » |
Once
lost, borrower is eligible for reinstatement
after making 24 on-time payments. Process
for reinstatement varies depending upon the
repayment servicer. Borrower should contact
EFSI’s customer
service center for more details |
| •
0.25% interest rate reduction with ACH |
| » |
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. Once
lost, benefit may not be reinstated |
|
|
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
|
HOW DOES THE FEDERAL GRAD PLUS 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 |
|
Choose lender EFSI (ID
#833617)
| 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
|
|
 |
1 - New Benefits are applicable
for loans with first disbursements or guarantees
after 1/1/2008. 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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