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Grad PLUS Loan for Graduate or Professional Students
PLUS loans are now available for graduate or professional students attending
an eligible school and having a satisfactory credit record can borrow the
Grad PLUS loan. The maximum loan amount is the difference between the cost
of education and any estimated financial assistance the student may be
receiving. Like the Federal Stafford Loan program, Grad PLUS loans are
issued in multiple disbursements and paid once each semester. The loan
check or Electronic Funds Transfer (EFT) of funds will be sent directly
to the school by the lender. The interest rate is fixed at 8.5%.
Repayment of the Grad PLUS loan begins within 60 days of the final disbursement
of that loan. Borrowers in school may request an in-school deferment in which payments
of interest only are required. BND offers a variety of payment options
for Grad PLUS borrowers. If the loan does not qualify for deferment while
the student is in school, we offer a variety of payment alternatives. We
can set them up on a no-payment schedule, a lower monthly payment, or we
will allow them to make interest-only payments. If the borrower chooses
the interest-only option and does not pay the full amount of interest that
accrues, any remaining amount is capitalized at the end of the interest-only
period.
Once approved for the Grad PLUS loan, the graduate student should contact
BND to determine the payment option which best suits their needs, as BND
offers Grad PLUS borrowers a number of payment options to choose from,
including a standard, graduated, income-sensitive, or extended repayment
schedule depending upon their individual circumstances. The borrower may also qualify for a .25% interest rate reduction when utilizing
an automatic payment option.
Note: The PLUS loan application is completed for Grad PLUS loans.
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