A Federal Graduate PLUS Loan is an education loan for students attending graduate or professional school at least half time. With a Graduate PLUS Loan, students can borrow up to the full cost of attendance, less other aid received. Graduate PLUS is a good supplemental option for students who have a remaining funding gap after borrowing the Stafford Loan maximum.

Graduate PLUS Advantages

• With a Grad PLUS loan, students can borrow up to the full cost of education, less other financial aid received.
• Grad PLUS loans require no collateral.
• Grad PLUS loans may be used to pay for authorized education expenses such as tuition, room and board, supplies, and equipment — often including personal computers — as well as transportation and commuting costs.
• Grad PLUS loans have flexible repayment options. And with Southwest as your lender, you may align your payments with your Stafford loan payments.
• Interest paid on Grad PLUS loans may be tax deductible. Check IRS Publication 970, chapter 4, "Student Loan Interest Deduction" for more information.
• Grad PLUS borrowers can earn a money-saving borrower benefit when choosing Southwestas lender.

Eligibility

• Borrower must be a graduate student enrolled at least half-time at a participating college or university.
• Borrower must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.
• A credit check is required. There are no income minimum or maximum requirements; however, borrower cannot have an adverse credit history.
• Student must file a FAFSA.

Interest Rate and Fees

• The interest rate is fixed at 8.5%.
• A 3% origination fee and a 1% default fee are deducted at disbursement.

Repayment

• Begins within 60 days after final disbursement OR borrowers may postpone payments while enrolled in school at least half time. If payments are postponed, interest will accrue and be capitalized on the unpaid loan balance.
• Borrowers have up to 10 years to repay under standard repayment
• Non-standard repayment options available