Graduate PLUS Loan
The Federal Graduate PLUS Loan is a credit-based loan which is available to assist students with the costs of higher education.
Current Terms
| federal direct Graduate PLUS loan terms | |
|---|---|
| In-School interest rate | 7.9% - Fixed |
| Interest Rate in Repayment | 7.9% - Fixed |
| Origination Fee | 4% - deducted from each disbursement; 1.5% upfront rebate - 2.5% net fee (Upfront Fee Rebate subject to the same terms as the Stafford Loan rebate) |
| Maximum Annual Limit | Cost of Attendance minus Other Aid |
| Grace Period | None*
|
| Credit Check | Borrower does not have an adverse credit history. Adverse credit is defined as being 90 days or more delinquent on any debt, having a credit report that shows bankruptcy, default, discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the 5 years preceding the date of the credit report. Lack of credit history or insufficient credit history is not considered adverse credit. |
| Repayment Period | up to 25 years; various repayment options |
In addition, as a federal loan, the Graduate PLUS Loan will be eligible for consolidation through the Federal Consolidation Loan Program.
Who is eligible to apply?
To be eligible to participate in the Federal Graduate PLUS Loan Program students must:
- be enrolled at least half-time
- be a U.S. citizen or permanent resident
- not have a balance due on a prior semester
- be making satisfactory academic progress
Disclosure Statements
The Master Promissory Note does not list the amount of your loans. When each loan is disbursed, you will receive a Disclosure Statement listing the amounts and types of your Direct Loans. You will receive a new Disclosure Statement for each new loan that you borrow, and if any changes are made to the amount of your loans. Be sure to keep your Disclosure Statements as a record of the loans you have received at BU Law.
Disbursements
Federal Direct Loans are disbursed via electronic fund transfer and are credited directly to your student account. An origination fee is deducted from the disbursement (see “Upfront Rebate” below). Federal regulations require that loans are divided into two equal disbursements, one for each semester.
If the student terminates or suspends his or her course of study, he or she should contact Boston University immediately for full information regarding their rights and responsibilities.
Entrance Counseling Requirement
If this is the first time that you have borrowed Federal Stafford Loans, you are required to complete an Entrance Counseling Session to inform you of your rights and responsibilities as a borrower. Your loan funds will not be disbursed to the University until you have fulfilled this requirement. Entrance Counseling Session may be completed online.
Direct Loan Master Promissory Note
If you are borrowing Federal Direct Loans for the first time, you must complete a Master Promissory Note online. The Master Promissory Note that you sign will be used for all of your subsequent Direct Loans at BU Law. You will not need to sign a new promissory note for each academic year nor will you sign a new note if you decide to change the amount of your Direct Loan.
Fee - Upfront Rebate
The Direct Loan program offers an up-front rebate of 1.5% of the original principal amount. The rebate will be reflected in the amount of the loan disbursement. An Origination Fee of 2.0% will be charged and 1.5% will be added back as a rebate - for each disbursement. The net amount deducted from each disbursement will therefore equal 0.5%.
The rebate is contingent on the student’s making the first twelve monthly payments on time after graduation. If a payment is late, the amount of the rebate will be added to the principal balance owed. Detailed information about the rebate will be included in the Disclosure Statements mailed to borrowers by the Direct Loan Program.