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Federal PLUS Loan for
Graduate Students |
Signature Student Loan® |
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Loan Description
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A credit-based federal loan program for graduate and professional students. FAFSA completion is required and is only available after eligibility for Federal Stafford Loans (subsidized and unsubsidized) has been determined. |
A credit-based private loan for undergraduate and graduate students used to
supplement federal, school, and other financial aid. |
| Borrower Benefits |
Cut your interest rate from 8.5% to 7.0% with Nellie Mae's interest rate reduction benefits:
- 0.25 percentage point reduction at first disbursement and continues for the life of the loan
- 0.75 percentage point reduction at repayment and continues during active repayment for as long as payments are made by the due dates as initially scheduled
- 0.50 percentage point reduction when your payments are automatically debited from your checking or savings account
Borrowers can receive a credit equal to 2.4% of their original principal loan balance, after making their first 24 payments by the due dates as initially scheduled.
Zero default fee-your guarantor pays the 1% default fee on your behalf. |
Reduce your interest rate by 0.25 percentage points during active periods of repayment when payments are automatically debited from your checking or savings account
Reduce your interest rate by another 0.50 percentage points after making your first 48 payments on time; continues during active repayment for as long as payments are made by the due dates as initially scheduled. |
| Interest Rate |
Fixed; set by federal government. For 2007-2008, the rate is 8.5%. |
Can be as low as Prime minus 1% with Zero Fees. Variable, based on Prime Rate; Prime Rate
in March 2007 was 8.25%. Interest rate changes when prime rate changes. Cosigner can
help student get a lower interest rate. |
Eligibility Criteria
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Student must be a U.S. citizen or
eligible noncitizen, a graduate or professional
student enrolled at least half time,
and not be in default or owe a refund on
any federal student aid program. |
Student must be a U.S. citizen or eligible
noncitizen, enrolled at east half time, and
not be in default or owe a refund on any federal student aid program. International
students are eligible with a qualified cosigner. |
| Primary Borrower |
Student. |
Student. |
| Endorser/Cosigner Option |
Yes. Students who are not Graduate PLUS eligible on the basis of their own credit may obtain a creditworthy endorser. |
Yes. Cosigners help students get a lower interest rate and save a lot of money. |
| Online Cosigner/Endorser Process |
No. |
Yes. |
| FAFSA Completion |
Yes. You must submit a FAFSA. |
No. |
| Credit Check |
Yes. |
Yes. |
Fees
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Guarantee/Federal Default Fee: Up to 1%*; Origination Fee: 2%*** |
Repayment Fee: 0 to 3%****; Forbearance Fee: $50 per loan with $150 cap. |
Loan Limits—AY 07-08
Annual (Graduate)
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Cost of attendance minus financial aid
received. |
Cost of attendance minus financial aid
received. |
Loan Limits—AY 07-08
Aggregate (Graduate)
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N/A. |
Without cosigner, aggregate limit of
$150,000 applies ($220,000 for selected
health professions). With cosigner,
students can borrow more than the
aggregate loan limit. |
| Grace |
Yes. Repayment of Graduate PLUS loan may be
aligned with grace period on any Stafford loan. |
6 Months. Repayment begins 6 months after borrower graduates or is no longer in school at least half-time. |
Deferment
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In-school, unemployment, economic
hardship, graduate fellowship, military
deferment. |
In-school. |
| Forbearance |
Yes.
Forbearance lets you suspend or reduce your payments under certain circumstances and for specified periods of up to one year at a time. |
Yes.
Forbearance lets you suspend or reduce your payments under certain circumstances and for specified periods of up to one year at a time. |
Repay Term (years)
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Standard is up to 10 years; up to 25 years for eligible borrowers. |
Standard is up to 30 years. |
First Payment Due Date
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Within 60 days of final loan disbursement.
In-school deferment will be automatically granted based on school certification. |
Within 45 days after grace period ends. |
| Repayment Incentive |
Yes. See borrower benefits above. |
Yes. Cosigner release. Borrowers can apply to have the cosigner released after they make the first 24 scheduled monthly payments of principal and interest by due date as initially scheduled. Borrowers must pass a credit review at that time. |
Loan Forgiveness Due to Death, Disability, and Identity Theft
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Yes. |
No. |
Application/Master Promissory Note
Availability |
Yes. |
No. |
| Federal Consolidation-Eligible |
Yes. |
No. |
| Private Consolidation Loan-Eligible |
No. |
Yes. |
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Then visit the HESC Web
site at www.hesc.com to complete the Master Promissory Note (MPN)
online."
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Returning Borrowers - Log in to complete a saved application. |
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* Non-federal source may pay; deducted from loan amount.
** Lender may pay the origination fee on behalf of borrower; deducted from loan amount.
*** Deducted from loan amount.
**** Added to principal balance at repayment.
Sallie Mae and Signature Student Loan are registered service marks and Champions for Higher Education is a service mark of Sallie Mae, Inc. SLM Corporation and its subsidiaries are not
sponsored by or agencies of the United States of America. Sallie Mae is a wholly owned subsidiary of SLM Corporation. Copyright 2006 by Sallie Mae, Inc. All rights reserved.
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