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Graduate Plus Loans INTEREST RATE: 8.5% fixed for the life of the loan FEES: 4% from each disbursement APPLICATION: Graduate PLUS Loan Processing Sheet PROMISSORY NOTE: www.dlenote.ed.gov LENDER: U.S. Department of Education's Direct Lending Program DESCRIPTION: The Federal PLUS Loan program was originally only available to parents of undergraduate students (hence the name: Parents Loans for Undergraduate Students), but was expanded to graduate students (themselves, not their parents) to help cover the difference between the student's cost of attendance and the federal limit on Stafford loans. The PLUS loan program has a higher interest rate than the Stafford loan program, so it is only used after all Stafford eligibility is exhausted. Most of our students can meet their entire cost of attendance each year with Stafford Loans. However, our cost of attendance for in-state residents is close to the current federal annual limit on Stafford loans. Therefore, if you are a non-Arkansas resident and are being charged double tuition, or if your cost of attendance is increased (for any reason such as the purchase of a computer, child care, medical bills, etc.) beyond the federal annual limit for Stafford loans, the Graduate PLUS Loan is your next best option. The terms of the Federal Graduate PLUS Loan Program are similar to the terms of the Unsubsidized Stafford Loan Program in that eligibility is not based on need, interest accrues from the date the loan is disbursed, and that you will not have to enter repayment until you complete your residency training. The interest rate for PLUS loans is fixed at 8.5% for the life of the loan; however, some lenders may offer interest rate reductions and other benefits or incentives. The maximum you may borrow each year from the Graduate PLUS Loan Program will equal your cost of attendance minus any other aid you have received. Please note that the Graduate PLUS Loan Program does contain an additional eligibility requirement not required of the Stafford Loan Program - a basic credit check. The following criteria is used to consider a borrower to be in good credit standing:
Your loan will be disbursed in two equal installments, the first at registration (provided you have applied in a timely manner) and the second in early January. The Department of Education will deduct up to 4% from each disbursement in loan origination fees. These fees are used to help offset the cost of the programs. HOW TO APPLY: First make sure that you are receiving the most that you can receive from the Stafford Loan Program, which has a lower interest rate. Then, complete the Graduate PLUS Loan Processing Sheet and return it to the Financial Aid Office. Once the Financial Aid Office determines your eligibility and processes your loan, we will send you a Financial Aid Award Letter notifying you of your award. We ask that you contact the Financial Aid Office within two weeks of receiving your Award Letter if you would like to change any of the loan amounts listed. You must also sign a Graduate PLUS Master Promissory Note at www.dlenote.ed.gov before you can receive your initial Graduate PLUS Loan through the Direct Loan Program. A single Master Promissory Note will authorize the Department of Education to disburse multiple Graduate PLUS Loans to you for up to ten years. So you will not be required to sign a new note each year.
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