Applying for Graduate Plus Loan

[Dustin]

Hi, I’m considering applying for a Graduate Plus Loan (GradPlus). Does anyone know if they’re based on score alone, or do they also check negatives? I do have 90+ late from BOA from five month ago, but there’s no other negative info on my report. Tnx.

[Tracy Winters]

Unfortunately, they DO require a clean credit report

The Graduate PLUS loan, or GradPLUS loan, is a low, fixed interest rate student loan guaranteed by the U.S. Government.

Unlike other Federal aid,the Grad PLUS loan is not need-based. Loan eligibility and total loan amount is not based on household family income level, personal income level, financial need, or personal assets.

GradPlus loans are similar to credit-based private student loans, with the benefit of having a fixed interest rate and federal guarantee.

The GradPLUS Loan allows graduate students to borrow the total cost for their graduate school needs, including tuition, room and board, supplies, lab expenses, and travel, less any other aid.

Here’s a quick overview of the Graduate Plus loans:

• The U.S. Department of Education is the lender.
• The maximum loan amount is the student’s cost of attendance (determined by the school) minus any other financial aid the student has received.
• Loans have a fixed interest rate of 7.9%.
• In order to qualify, the borrower must not have any adverse credit history (it’s not clear enough for how long)
• GradPLUS payments can be deferred while you are in school .
• Cosigner not required.
• Interest is tax deductible for most grad students.
• School must be participating in the program.

Considering you have a recent derogatory item on your report, I’d say your chances of getting approved are slim.

More information about Graduate Plus Loans at http://studentaid.ed.gov/types/loans/plus.

[Author]

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