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Supplemental Loans for Graduate Students
Should students find it necessary to borrow additional funds, there are other loan options aside from the Federal Stafford loans: The Federal GradPLUS loan; and what is termed an “Alternative loan.”
The Federal GradPLUS loan is a new borrowing option for graduate students; it is similar to the Federal Parent PLUS loan except that the borrower is the student.
- Amount eligible to be borrowed: Up to the amount of the cost of attendance less any other financial aid accepted.
- Interest rate: Fixed 8.5%
- Grace period: None. Standard repayment on a Federal PLUS loan begins 60 days after the full disbursement of the loan. The lenders on our lender list (see information sheet) will give an automatic in-school deferment status until the student graduates or drops below half-time enrollment status.
- Lender: The student may-but is not required to--obtain a loan from the same lender used for Federal Stafford loans.
- Federal consolidation with Stafford loans: Yes
Federal GradPLUS Information Sheet
A second supplemental borrowing option is an Alternative loan. An Alternative loan is an education loan to the student from private lender funds which are not federally-guaranteed. Because of this, the interest rate is somewhat higher than on Federal Stafford loans, and there are not the same provisions for loan cancellations and discharges.
- Amount eligible to be borrowed: Up to the amount of the cost of attendance less any other financial aid accepted.
- Interest rate: Variable
- Grace period: 6 months after student drops below at least half-time enrollment.
- Lender: The student may-but is not required to--obtain a loan from the same lender used for Federal Stafford loans.
- Federal consolidation with Stafford loans: No
If the student is interested in applying for an Alternative Loan, our office recommends that he use the same lender as he uses for his Federal Stafford Loans if that lender offers an alternative loan option.
Alternative Loan Chart
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