The Federal PLUS (Parent Loan for Undergraduate Students) was previously available only to the parents of dependent undergraduate students. Beginning July 1, 2006, that availability has expanded to Graduate/Professional students.
The GradPLUS loan is a guaranteed, federal unsubsidized loan. You may be required to pay a guarantee fee (1%) and an origination fee (3%).
All unsubsidized loans begin to accrue interest at disbursement. Currently, the interest on a GradPLUS loan is fixed at 8.5%, annually. You have the option of paying this interest monthly as it accrues.
GradPLUS loans do not have a grace period.
GradPLUS loans qualify for a federal consolidation, after you graduate, along with other federal student loans (i.e. Perkins, Stafford, etc.). Federal Consolidation Loans have a fixed interest rate. The fixed interest rate is determined by taking the weighted average of the loans being consolidated rounded up to the nearest eighth of a percent or 8.25%, whichever is less.
Eligibility for a GradPLUS loan will require no adverse credit history.