Graduate PLUS Loan Information

Regulations for this new program are still evolving.  
Check back for additional information later in the summer.  
Last updated May 17, 2007.

Loans are borrowed to cover tuition and educational expenses and must be repaid. 

• Starting July 1, 2006, qualifying graduate or professional students can take out a federal Graduate/Professional PLUS loan as an option for financing their college education.

• This is a loan available to graduate or professional (nursing, veterinary medicine or pharmacy) students. 

• Graduate PLUS loans enable graduate/professional student to borrow to pay the education expenses not covered by their Stafford loan, Health Professions loans or Perkins loans.  It is considered an alternative to borrowing under the private/alternative loan programs.

• If you're a regular student enrolled in an eligible program at least half time, you may be eligible to apply for a  Graduate PLUS Loan. You must also meet other general eligibility requirements.

  • You must have a FAFSA on file for the year you wish to borrow.

  • You must be enrolled at least half-time (3 or more credits per term) to be eligible for this loan.

  • You must have borrowed your annual maximum under the Stafford Subsidized and/or Unsubsidized Loan Program.

    • The annual limit that students may borrow under the Stafford Subsidized and/or Unsubsidized Loan Program is based on the credits completed towards their degree.  

    • Graduate limits

    • Graduate Nursing limits

    • Pharmacy limits

    • Vet/Med limits

  • You or (your endorser) must also meet minimum credit eligibility requirements.

Federal Graduate PLUS

• This loan is based not on financial need.  

• The Graduate PLUS interest rate is fixed at 8.5% for the life of the loan. 

• You may have to pay an origination fee of up to 3 percent and a federal default fee of up to 1 percent.  Some lenders may offer reduced interest rates and fees, so shop around.

• Interest is charged on the loan from the date that the first disbursement is made until the loan is paid in full.  Up to $2,500 of the interest you pay may be tax deductible.  Check with your tax advisor for the details.

• You'll need to start repaying your loan with 60 days of your last disbursement.  You’ll have up to 10 years to repay.  You have the option of deferring making any loan payments until after you graduate.  The interest, however will continue to accrue during any deferment. 

Loan Repayment

• You'll be better off if you borrow conservatively, budget wisely and plan ahead.  Knowing the monthly payments for the amount you borrow is a great start.

                                               Interest rate 8.50% fixed

• When it comes time to repay your loans, keep in mind that if you fall behind in your payments, your delinquency will be reported to the national credit reporting agencies.  A damaged credit rating will make it hard and more expensive to get a loan later should you want to finance a car, a house or more education.

• If you allow your loan to go into default, your wages may be taken from you, your tax refunds could be seized, you could be charged hefty collection costs and more.

• You can take steps to temporarily postpone or reduce loan payments to avoid delinquency and the consequences of default.  If you're having problems making your payments, ask your lender about a deferment or forbearance, or other options.

The Graduate PLUS Loan application process:

The loans amounts for which you are eligible are listed on your financial aid award notification.  If you choose to borrow, you must confirm the award amounts you wish to borrow and return one signed copy of the notification to the Office of Student Financial Aid.  If you choose to borrow less than the amount listed, you will need to modify the letter to show the lesser amount you wish to borrow.

• If you have not previously completed an Graduate PLUS MPN at Washington State University, you'll start the loan application process by getting a letter from EdFund, which includes instructions for completing the loan application online at www.edfund.org.  A list of preferred lenders will be available online as well.

• If you have previously completed a Graduate PLUS Master Promissory Note (MPN) at Washington State University, you are not required to complete a new loan application unless you decide to change your lender.  (The MPN is the legal contract between the borrower and the lender, ensuring that you (the borrower) will repay the loan.)

For more information on Graduate PLUS Loans:

• Preferred Federal Loan Lenders for Graduate PLUS Loans

• Frequently Asked Questions About Graduate PLUS Loan Program

• return to Loan Overview