Federal Direct Graduate PLUS Loan
To be eligible for the Graduate PLUS Loan you must be a graduate student enrolled at least half-time, be credit-worthy, and have exhausted the maximum amount in Stafford loans. There are no set limits for Direct Graduate PLUS Loans, but you may not borrow more than the cost of education minus any other financial aid received. If you are found to have an adverse credit history, you may still borrow a Graduate PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan.
The interest rate is fixed at 7.9%. There is an origination fee of 4%. However, there is an up-front interest rebate of 1.5%. The Up-front Interest Rebate percentage is the amount given to borrowers after the Origination Fee has been deducted from each loan disbursed. Students must make all of the first 12 required monthly payments on time or the rebate amount will be added back to the principal balance of the loan.
To apply for the Federal Direct Graduate PLUS Loan, please visit http://www.fredonia.edu/finaid/gradplus.asp.