Grad PLUS Loan

The Federal PLUS Loan was previously available only to the parents of dependent undergraduate students. Beginning with the 2006-07 academic year, availability is extended to graduate/professional students. The graduate/professional student is both the borrower and the student and must be credit worthy as determined by the lender. A graduate/professional student can borrow up to the cost of attendance less any other financial aid received.

Interest Rates

The Graduate/Professional PLUS loan interest rate is fixed at 8.5%. Interest begins to accrue at the time of each loan disbursement.

Loan Fees

There is a 3% origination fee charged by the U.S. Department of Education for processing the Graduate/Professional PLUS loan. The loan fee is deducted proportionately from each disbursement of the Graduate/Professional PLUS loan.

Credit Checks

Borrowers of the Grad PLUS loan must pass a basic credit check and not have an adverse credit history. Adverse credit history is defined as:

• 90 days or more delinquent on the repayment of any debt.
• any debt discharged in bankruptcy during the 5-year period before the date of the credit report.
• default determination on any debt, a foreclosure, a tax lien, a repossession, a wage garnishment, or a write-off of a Title IV debt during the 5-year period before the date of the credit report.

Denied Credit Checks

If you do not pass the credit check, there are two options available to you.

1. Contact your lender if you believe there was an error made on the credit check.
    
2. You can obtain a credit-worthy endorser. The endorser would need to pass the credit check, agree to endorse the Master Promissory Note, and agree to repay the loan if you would fail to do so. Information about how to proceed with this option will be included in your letter from your lender.

Disbursements

A positive credit check and completed PLUS Master Promissory Note must be received before any funds can be disbursed to your account. Estimated loan amounts will appear on your account if we have received notification of a positive credit check.

Repayments

Repayment on a Graduate/Professional PLUS loan begins 60 days after the final disbursement of the loan and will continue while you are enrolled in school. However, you may request a deferment while enrolled on at least a half-time basis (minimum of 6 credit hours). If you would like to request a deferment, you should contact your lender.

Student Eligibility

Before any Graduate/Professional PLUS loan proceeds can be disbursed, you must be:

• Enroll and attend at least half-time (6 credit hours) at the graduate level 
• Enrolled in a degree-seeking program (cannot be provisional or special student status) 
• Maintaining satisfactory academic progress

Option 1: Direct Loan Process

The loan program listed on your initial Financial Aid Award Notification is the Federal Direct Loan program. To process your Federal Grad PLUS Loan through the Direct Loan program:

1. Accept, decline and/or reduce your Federal Direct Grad PLUS Loan by completing the 2008-09 Graduate/Professional Direct PLUS Loan Application and returning to OSFA.
    
2. Complete the Grad PLUS Loan Entrance Counseling Form and return to the OSFA. (Counseling form is attached to the above application)
    
3. Follow the links below to complete your Direct Loan Master Promissory Note (MPN) (if you have not completed one at The University of Toledo in the past 10 years)
   Promissory Note
    
4. Enroll and attend classes for at least 6 credit hours at the graduate level in a degree-seeking program (cannot be provisional or special student status).

Option 2: FFELP Loan Process

The link below contains information regarding borrower benefits and links to complete an on-line MPN. The list does not include all lenders and you are encouraged to shop and compare the Federal Grad PLUS Loan program for qualified lenders and their benefits. The University of Toledo does not have a preferred lender list, but does provide a list of lenders used by students in the past.

The FFELP Lender Information Website

To process your Federal Grad PLUS Loan through the FFEL program:

1. Accept your Stafford loan by completing and returning the 2008-09 Graduate/Professional FFELP PLUS Loan form to the OSFA.
    
2. Complete the Grad PLUS Loan Entrance Counseling Form and return to the OSFA. (Counseling form is attached to the above application)
    
3. Complete the electronic or paper master promissory note (MPN) with your lender. You may check for an electronic note at:
   Promissory Note*
    
4. Enroll and attend classes for at least 6 credit hours at the graduate level in a degree-seeking program (cannot be provisional or special student status).

*Please check with your lender to completely understand the promissory note processing specific to their policy if you do note find them listed at the above site.