(LifeWire) - Federal PLUS Loans for Graduate and Professional Degree Students Basics:
Students earning a master's, law or medical degree may qualify for a Federal PLUS loan to cover nearly all costs, minus aid or scholarships they may already be receiving. Borrowers pay a 7.9% fixed interest rate and a 4% fee on the loan total.
Qualifying for Federal PLUS Loans for Graduate and Professional Degree Students:
Students must meet general federal student aid guidelines and be working at least half-time on a master's or professional degree at a school affiliated with the William D. Ford Federal Direct Loan Program. Given the sizable amounts that could be involved with this loan, the federal government is a stickler for fiscally responsible borrowers. That means no debt delinquency, bankruptcy, foreclosure, wage garnishment, repossession or tax lien within the last five years. Credit-iffy applicants can have a credit-worthy parent sign for them.
Applying for Federal PLUS Loans for Graduate and Professional Degree Students:
Like all federal borrowing requests, students must fill out the Free Application for Federal Student Aid at www.fafsa.ed.gov.
Repaying Federal PLUS Loans for Graduate and Professional Degree Students:
There's no grace period for repaying a Federal PLUS loan. The first installment deadline is 60 days after the borrower receives the full amount of the loan. But students can postpone payments while still in school at least half-time. The deferment request can be downloaded at www.dl.ed.gov and will automatically go into effect when the school in question confirms the continued enrollment of the loan recipient. The deferment can continue until students either graduate or attend less than half-time. At that point, the first installment would have to be made within 45 days. Borrowers are eligible for an up-front rebate repayment incentive of 1.5% of the loan principal.
