Federal Grad PLUS Loan

The Federal Graduate PLUS Loan is an unsubsidized low interest rate loan that is non-need based. Interest starts accruing on this loan at the time of disbursement although payment can be delayed until after graduation. Even though the Federal Graduate PLUS Loan is available to all students regardless of financial need, you must still file the FASFA to be eligible. The lender will perform a credit check before approving the loan.

2008-09 Loan Processing

Beginning with the 2008-09 academic year, Wayne State University will be a full participant in the William D. Ford Federal Direct Loan Program.

The Federal Direct Loan Program offers many benefits to Wayne State University students, including:

Consistent access to loan funds directly from the U.S. Department of Education
Competitive rates and repayment options
Simple application process

As a full Direct Loan participant, Wayne State University will no longer be able to certify Federal PLUS Loans through private lenders after the 2007-08 school year.

To Apply for a Federal Direct Grad PLUS Loan for 2008-09

1. Complete Required Federal Grad PLUS Loan Counseling

2. Complete the Federal DIRECT Grad PLUS Loan Master Promissory Note

You will need the PIN number you used to file your FAFSA. If you do not have your PIN, see www.PIN.ed.gov for more information.
Select "Wayne State University" as your school of attendance.

3. Complete the Federal DIRECT Graduate PLUS Loan Request Form

1-2-3 Loan Process Steps for 2008-09

Federal Grad PLUS Eligibility Rules and Loan Limits

Even though the Federal PLUS Loan is available to all students regardless of financial need, you must still file the FASFA to be eligible.

With a Grad PLUS loan, you may borrow up to the full cost of your education, less other financial aid including Federal Stafford loans. The Grad PLUS Loan has a higher interest rate than Federal Stafford Loans and students should exhaust their federal Stafford loan eligibility before applying for a Grad PLUS loan. A credit check is required, although credit requirements are less stringent than Alternative Student Loans.

Enrollment Requirement: You must be enrolled at least half-time in order to be eligible for the Federal Stafford Loan. For a JD student, five credit hours is considered half time during the academic year. For an LLM student, four credit hours is considered half time. During the spring/summer semester enrollment a JD student, must be enrolled for 3 credit hours and an LLM student for 1 credit hour to be considered half time.

	Half-Time	Full-Time
JD Student	5-9 credits	10+ credits
LLM student	4-7 credits	8+ credits

Federal DIRECT

Loans

Loan Funded By:

US Department of Education

Loan Servicer:

Direct Loan Servicing Center

Guarantor:

US Department of Education

Loan Servicer:

Direct Loan Servicing Center

Grad PLUS:

7.9% Interest Rate

Grad PLUS

Loan Fees:

2.5% Loan Fee

(Includes a 1.5% rebate which will be added back if first 12 loan payments are not made on-time.)

Grad PLUS

Repayment Interest Rates and Benefits:

· 0.25% Interest Rate Reduction for electronic payment

Federal Direct Grad PLUS Loan Terms

The Federal Graduate PLUS loan is a low-interest student loan for graduate students attending at least half-time. The interest rate is fixed at 7.9%. There is a 2.5% loan origination fee deducted from the loan by the U.S. Department of Education. This loan fee includes an up-front rebate that assumes you will make 12 on-time monthly payments.

Unlike other federal loans, the Grad PLUS loan requires credit approval.

The Federal Direct Graduate PLUS loan can be consolidated with other federal loans after graduation.

Applicant Services for PLUS Loan Borrowers:

800-557-7394 8 am to 8 pm (ET), Monday thru Friday
877-461-7010 Telecommunication Device for the Deaf (TDD)

Plus Borrowers can contact Applicant Services for:

Credit Appeal Overrides
Endorser Application Questions

Credit Criteria

Credit approval is based on federally mandated criteria, not a credit score. In order to qualify, you must not have any of the following items on your credit report:

· Any current delinquency of 90 days or more

· Any of the following items within the preceding five years of the date of the credit report: Default, Bankruptcy, Discharge, Foreclosure, Repossession, Tax Lien, Wage Garnishment, Write-off of a Title IV Debt, Open Collection

Credit Approval

Credit approval is valid for 6 months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the proceeding 6 months.

If you think you may have one or more of the items outlined in the credit requirements listed above you may want to obtain your credit report in advance. You may be able to fix an item such as the delinquency by simply making a payment and bringing your delinquency to less than 90 days. If you have had a situation with a discharge or collection item for example, you may be able to obtain a “settled in full” status if you work with the entity to reach a satisfactory arrangement. If you are able to fix an item, it is no longer considered in the credit evaluation and it may result in your credit being approved.

Credit Denial Options

· Apply with an endorser

· Correct any invalid information on your credit report that may have led to the denial

· Appeal the denial

· Contact the financial aid office to explore your options. We will review your award to make sure you are taking advantage of all loan and college work-study options.