Financial Aid Contacts

Federal Graduate PLUS Loan

The Federal Graduate PLUS Loan program provides graduate and professional students with the opportunity to borrow funds to meet the difference between the Cost of Attendance Budget (tuition, fees, books, supplies, room, board, transportation, and personal/miscellaneous costs related to the student’s attendance in school) and other financial aid, such as scholarships, loans, and work-study employment.  In the past, students who needed to fund these costs had to do so on their own or borrow from a private, alternative loan program.  The Graduate PLUS loan program allows students to borrow from a federal program through the same or a different lender than they use for their Federal Stafford Loans.

The Federal Graduate PLUS Loan has a 3% origination fee and an 8.5% fixed interest rate.  While some alternative loan programs may offer rates competitive with or lower than this rate, most alternative loan lenders use a variable rather than a fixed interest rate.  In addition, many lenders offer significant interest rate discounts on the Graduate PLUS loans for students who repay their loans in a timely manner after graduation.

Unlike the Federal Stafford Loan, there is no grace period on the Graduate PLUS Loan.  This means that the loan comes due immediately after the student graduates, leaves school, or otherwise ceases to be enrolled at least half time.  Students may defer payments on the Graduate PLUS Loan while they are enrolled at least half time in an eligible institution of higher education; or they may pay principal and interest as they go; or pay interest only to reduce the amount added to the loan when it goes into repayment.

Graduate PLUS loans may be consolidated with other federal loans such as Federal Stafford, Federal Perkins, Heath Professions Assistance Loans, Nursing Student Loans, etc., to stretch out the payments for a longer period and reduce the amount due each month.  Consolidating your loans will result in the loss of most if not all of your repayment incentives, but lenders may have different incentives for consolidation loans.  It is strongly recommended that you consult with your financial advisor, tax planner, and lender or financial aid administrator before deciding to consolidate your loans.  Once you consolidate, your existing loans are paid off, and you can’t “un-consolidate” them to get back any repayment incentives you may have had under the original loan programs.

More information on Stafford, Graduate PLUS, and Alternative Loan programs, along with charts comparing interest rates, origination fees, and repayment incentives offered by several sample lenders may be accessed below. There are literally thousands of lenders, and you may choose any of them for your loans.  The ones we list are commonly used by UDM students and have competitive rates and incentive programs and a good history of servicing students.

Selecting a Lender for your Federal Stafford Loan
Federal PLUS/Graduate PLUS or Alternative Loan?
Federal PLUS/Graduate PLUS Loan Comparison Chart
Alternative Student Loans and You
Alternative Loans for Law Students Comparison Chart