The Federal PLUS loan program was formerly only available to parents of undergraduate students to assist with educational costs. However, graduate and professional students are now able to apply for a PLUS loan, based on changes in federal legislation. Graduate PLUS loans are approved based on the borrower not having an adverse credit history.

Before applying for a Federal PLUS Loan, a graduate or professional student must first complete the Free Application for Federal Student Aid (FAFSA) and must have been determined eligible for his or her maximum loan amount under the Federal Subsidized and Unsubsidized Stafford Loan Program.

The Graduate PLUS loan has a fixed interest rate of 8.5%. The loan limit for each year is the annual cost of attendance less other financial assistance the student receives. Interest on the Graduate PLUS loan will begin accruing immediately; the student may choose to make interest payments while in school or the interest may be capitalized and become due once repayment begins. Apply here.