Graduate PLUS Loan for Grad Students
he Graduate PLUS loan, or GradPLUS loan is a low, fixed interest rate student loan guaranteed by the U.S. Government. The Grad PLUS loan is a non-need credit based loan similar to a private student loan, but with the benefit of having a fixed interest rate and federal guarantee.
What is a PLUS loan?
The PLUS loan (Parent Loans for Undergraduate Students) is a federal loan that is available to parents of dependent students enrolled at least half-time in a program that is offered by participating post-secondary institutions.
What are the benefits of a PLUS loan?
Most of the benefits to parent borrowers are identical in the two programs; however, some lenders do offer repayment and other savings benefits. Things to note:

The primary benefit of the PLUS loan is that parents can borrow federally-guaranteed low interest loans to help pay for their child's education.
A Federal Parent PLUS loan allows parents to borrow the total cost of undergraduate education such as tuition, room and board, supplies, lab expenses and travel, less any other financial aid.
PLUS loans are not need-based. PLUS loans are based on your credit rating, and the rating average that is considered "good" is usually 625 or better.
The interest rate is fixed but adjusted annually by the Department of Education based on the 9-day Treasury Bill rate for the last auction in May of each calendar year.
PLUS loans require no collateral.
nterest may be tax deductible.
How much can I borrow with a GradPLUS loan?
The yearly limit on a Graduate PLUS Loan is equal to your cost of attendance* minus any other financial aid you receive. For example, if your cost of attendance* is $6,000 and you receive $4,000 in other financial aid, you could borrow up to but no more than $2,000.

PLUS Loan Consolidation Programs and Alternatives
Remember, not all lenders offer the federal consolidation loan. But there are now alternative options for debt management.

Consider carefully the repayment plan you choose when you sign your initial loan promissory note. Your lender will offer you a standard, graduated, income-sensitive or an extended repayment plan. The latter has been added as a viable alternative to consolidation.
Where you do discover opportunities to consolidate your PLUS Loan you're likely to find other conveniences, such as: online applications with an eSign option and interest rate reductions for on-time payments as well as electronic payments.

PLUS Loan Consolidation does not stop here. We've offered a general example of an available and competitive PLUS Loan consolidation program. **Best advice: Check first with your own lender. An account manager has immediate and up-to-date information on your loans, payment and credit history and is able to advise you accordingly on responsible debt management.
Consolidation loans have longer terms than other loans. Debtors can choose terms of 10-30 years. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans. The fixed interest rate is calculated as the weighted average of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0.125%, and capped at 8.25%. Some features of the original consolidated loans, such as post graduation grace periods and special forgiveness circumstances, are not carried over into the consolidation loan, and consolidation loans are not universally suitable for all debtors.