Graduate PLUS Loans
Although PLUS Loans originally stood for Parent Loans for Undergraduate Students, that name has been dropped and they are just referred to PLUS Loans now becuase they are available for graduate studies in addition to undergraduate studies. The undergraduate version of the PLUS Loans are intended for parents to take out loans for their child’s education. However, the Graduate PLUS Loan program is intended for graduate students to take out loans for their own education. A parent can co-sign a Graduate PLUS Loan if the student’s credit is not sufficient to be approved for the loan.
With the Graduate PLUS Loan, you can borrow up to the full cost of your college education, as certified by your school, less any other aid received. The interest rate on graduate PLUS loans is fixed at 8.5% and there is a 4% fee (3% origination fee plus 1% federal default fee) added to the loan.