Grad PLUS Loan Processing
A Grad PLUS Loan is a federal loan for graduate students. Grad PLUS Loans are not based on financial need; however, the loan cannot exceed the cost of attendance minus other financial aid. The interest rate on the Grad PLUS Loan is fixed at 8.5%. Interest accrues when the funds are disbursed and repayment begins 60 days after the last disbursement of the loan. If you are enrolled at least halftime you may qualify for an in-school deferment from your lender.
First Time Grad PLUS Borrowers
First time borrowers must complete Entrance Loan Counseling and Master Promissory Note (MPN).
* Loans cannot be disbursed unless both steps are completed!
STEP #1: Entrance Loan Counseling
Carefully read these instructions prior to clicking on the counseling link.
- Click here to start counseling (will open a new window).
- Register for an account by clicking on Create an account link.
- Complete loan counseling (approximately 30 minutes).
- Close the window to return to this page.
STEP #2: Master Promissory Note (MPN)
The online MPN must be completed in a single session. Be sure you have enough time before you start this step! The online MPN will take approximately 20 minutes to complete. Collect all required information prior to starting the process. If you exit the online MPN before submitting, you will have to start from the beginning when you return to the site.
To apply for a Grad PLUS Loan electronically you will need:
- Social Security number (SSN)
- Date of birth (DOB)
- Complete address and phone number
- Email address (to receive email confirmation)
- Employer information (if applicable)
- Driver's license
- Department of Education (ED) PIN (to electronically sign MPN)
- Two personal references including their name, address and phone number:
- Must have U.S. address
- Known you for at least three years
- Citizenship status (alien registration number if applicable)
- Loan amount (maximum amount available on student’s financial aid award notice)
You will create a password/account and then be directed to complete the Grad PLUS Master Promissory Note (MPN). You will also be asked to choose a lender. You may choose one of the lenders listed or provide the six-digit lender code of any other participating lender. You will receive a credit decision immediately and our office will be updated with the results of your application within two business days.
Frequently Asked Questions
How do I choose a lender?
When choosing a lender to finance your student loan there is more to consider than which one offers the lowest interest rate. Each lender offers a unique package of rates, repayment incentives and servicing methods.
Here are some things to consider when choosing a student loan lender:
- How often does the lender capitalize interest on the loan?
- Are there origination fees on the loan (up-front fees)?
- Do you prefer a lender with whom you have a financial history?
- Does the lender process their loans electronically with your school?
- Does your lender offer convenient access to account information and customer service?
- Are there interest rate reductions if you sign up for automatic withdrawal from your checking account?
- Does the lender offer interest or principle reductions after a certain number of on-time monthly payments?
What if my Grad PLUS loan is denied?
If you apply for the Grad PLUS Loan electronically and your loan is denied, our office will be updated within two business days. If you then want to reapply (usually with a cosigner or a different cosigner) follow the instructions you receive from GLHEC and contact our office so we can process your Grad PLUS Loan on our end.
What are the interest rate and fees on Grad PLUS loans?
Grad PLUS loans will have a fixed interest rate of 8.5 %. A 3% fee is mandated by law on all PLUS Loans.
When does the student have to begin making payments?
Unless the student completes an In-School Deferment form, or the lender activates an automatic deferment, the student will be required to begin making payments 60 days after the loan is disbursed in full. Also, PLUS Loans do not have a grace period. Students must begin making payments immediately after an in-school deferment ends unless they contact their loan servicer to make other arrangements.
Can a student receive deferments and forbearances on a Grad PLUS loan?
Generally the same deferment and forebearance provisions that apply to Stafford Loans apply to PLUS Loans. Because PLUS Loans are unsubsidized, however, borrowers will be charged interest during periods of deferment.
