Grad PLUS Loan

Please read this important notice about changes in federal loans at MSU.

Eligibility

Grad PLUS is available to graduate students who

• are enrolled at least half time in a degree-granting program
• file the Free Application for Federal Student Aid (FAFSA)
• pass a credit check

How to apply

Grad PLUS application is a two step process.
If you don't complete both steps the loan will not be processed. These steps can be completed in either order.

1. Complete an MSU Grad PLUS Loan Application Form (LAF).
   A new LAF is required for each loan. Complete the form and fax or mail it to the address on the form.
   • Grad Plus LAF Fall/Spring 2007-2008
   • Grad Plus LAF Summer 2008
   • Grad Plus LAF Fall/Spring 2008-2009
2. Complete a GradPLUS Master Promissory Note (MPN)
   You need to complete only one multi-year MPN unless you change lenders.
   • For fall, spring, summer 2007-2008:
     • To use one of MSU's recommended lenders, complete a Grad PLUS Master Promissory Note (MPN) online at www.fastproducts.org/plusgrad/msu.
     • If you choose a different lender follow their instructions for completing the MPN.
   • For fall/spring/summer 2008-2009:
     • Complete a GradPLUS Direct Loan Master Promissory Note.

Loan limits

• The loan limit for each year is the annual cost of education (the "budget") minus other financial assistance. If your requested amount is too high, it will be reduced to fit within the budget.
• The Office of Financial Aid (OFA) must determine your Stafford Student Loan eligibility before you may borrow under the Grad PLUS program. This means that many in-state graduate students, or students with graduate assistantships, will have their costs covered fully with Stafford Loan and may not need to use the Grad PLUS.

Interest rate

• Under Direct Loans, the interest rate is 7.9%. Under the Federal Family Education Loan Program (FFELP) the maximum interest rate was 8.5%.
• As with Unsubsidized Stafford Loans and private loans, interest begins to accumulate at the time the first disbursement is made. You may choose to pay the interest while in school in order to avoid "paying interest on interest" (capitalizing interest).

Loan origination fees

• The standard loan origination fee is 3%. 

What occurs during Grad PLUS processing?

• After OFA receives the LAF, we confirm your eligibility for a Grad PLUS and transmit the application to the PLUS loan servicing company, which will vary according to the lender you choose.
• The servicer performs a credit check after receiving either the paper MPN or electronic MPN.
• The servicer notifies you about acceptance or rejection of the loan.
• If the loan is approved, funds are sent directly to MSU and applied against your bill.

How is Grad PLUS repaid?

• You will receive an automatic deferment while you are enrolled at least half-time. Since Grad PLUS is not a subsidized loan, interest will accrue during this time. Repayment begins immediately upon your graduation, or if you drop below half-time enrollment. There is no grace period. However, you may request forbearance for up to 42 months.
• If you borrow through another lender, contact them about repayment terms. Repayment generally begins 60 days after the loan has been fully paid to your student account.
• More about repayment…