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Recent legislation now allows graduate students to borrow through the Federal Direct PLUS program. Formerly, this program was only available to the parents of undergraduate, dependent students. The Grad PLUS program is a non-need-based federal loan with a fixed 7.9% interest rate. Grad PLUS allows graduate students to borrow up to the full cost of attendance, minus any other financial aid they are receiving. This program may be of interest to students who need additional assistance to cover educational costs after other forms of aid have been awarded.
GRADUATE PLUS VS. PRIVATE LOANS:
We encourage students to compare the interest rates, credit check conditions, terms, and repayment of Grad PLUS Loans with those of private loan options; see Additional Borrowing Options for a comparison chart. In general, the credit check for the Grad PLUS Loan will not be as stringent as that of most private/alternative loans, which often look at debt to income ratio. Another difference is that Grad PLUS Loans can be consolidated with other Federal Direct Loans (Subsidized/Unsubsidized), which allows students to have only one payment after graduation (private/alternative loans cannot be consolidated with federal loans).
Note: Students may have already received information about the Grad PLUS program offered through private lenders. The University of Michigan participates in the Federal Direct PLUS program, so students do not have to secure a private lender.
How to Apply
To apply, complete the application materials and information below. You may also contact our office to receive paper copies of these materials.
2008-2009 (including Spring/Summer 2009):
- Complete the Free Application for Federal Student Aid (FAFSA) 2008-2009, if you haven't done so already.
- Federal Direct Grad PLUS Borrower Confirmation Form 2008-2009
All borrowers must complete this form each time they borrow through the Grad PLUS program.
- PLUS Master Promissory Note (MPN)
Only complete this form if you are borrowing through the Grad PLUS program for the FIRST TIME or if a financial endorser was required when you applied for the Grad PLUS previously.
- Be sure to click on Complete New MPN for Student Loans from the left menu bar. Select Graduate PLUS under the MPN type selection.
- You will need a U.S. Department of Education Personal Identification Number (PIN) to complete the online MPN.
- When your Grad PLUS is approved, you will receive an electronic award notice from OFA. If the loan is denied, you will be contacted by the Direct Loan Servicer.
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