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Home > Degree Programs > Student Financial Services > Student Loans > Federal Direct Grad PLUS Loans
Federal Direct Grad PLUS Loans
Harvard University is a participant in the Federal Direct Lending loan program. Students are generally expected to borrow through this program. If you wish to borrow a Grad PLUS through a private lender, please contact your lender directly for information on how to apply.
Interest Rate
The Grad PLUS loan is a federal loan with a fixed 7.9% interest rate and a 4% federal guarantee fee. The Department of Education will only charge 2.5% initially. The remaining 1.5% will not be charged unless the borrower fails to make the first 12 monthly payments on-time.
Eligibility
To qualify, applicants must be a US citizen or permanent resident and must have a satisfactory credit history. Individuals who apply and are turned down due to credit issues are eligible to obtain an endorser (co-signer) and reapply.
Amount
Borrowers are eligible to receive up to the cost of education minus all other aid received from all sources. For example, if a student has an $18,500 Stafford loan and is enrolled as a two-year student for 2007/2008, the maximum amount that could be borrowed would be $65,248 (cost of attendance) - $18,500 = $46,748.
Grad PLUS loan borrowers must first apply and be approved for their Stafford Loan eligibility prior to borrowing a Grad PLUS loan.
How to Apply
To apply for a Grad PLUS, applicants must complete and return a Credit Check Authorization Form. Once the applicant passes the credit check, they will be notified of approval. Promissory notes will then be completed during orientation.
Deferments, Forbearance, and Repayment Plans
Grad PLUS loans are federal loans which qualify for deferment, forbearance, forgiveness, consolidation and several different repayment plans. Deferments include unlimited in-school deferment, and up to 3 years of deferment for financial hardship and unemployment. Grad PLUS loans also qualify for up to 3 years of forbearance. Repayment plan options include the 10 year standard plan, as well as an extended plan that will allow the borrower to reduce monthly payments by lengthening repayment to up to 25 years. There is also an income-contingent repayment plan.
Grace Period
Grad PLUS loans do not have a grace period, and repayment will begin within 30 days of completing the program. There are, however, options to request a forbearance so that the borrower can begin repaying their Grad PLUS loan after the same six month grace period afforded the Stafford Loan.
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