The Graduate PLUS Loan
Lender Comparison:
2009-2010 Grad PLUS Lender Comparison
The Graduate PLUS Loan effectively replaces the need to borrow alternative education loans through private lenders, thus making the loans more affordable and easier to obtain
Highlights
- Lower interest rate than most private education loans
- Fixed Interest rate of 8.5% with possible lender incentives to lower the rate
- Credit based on "adverse credit" rather than "credit scoring"
- Lack of credit history or insufficient credit history is not considered
- Amount of eligibility determined using the same formula as private loans
- Cost of Attendance - All Other Aid = PLUS Loan Eligibility
- Can be consolidated with other federal loans upon graduation
Applying for the Loan
Regent will automatically package a Graduate Plus Loan for eligible graduate/professional students applying for aid. In the past, a private alternative loan would have been packaged.
Once the loan has been packaged, you will receive in the mail (or may download online) a Graduate Plus Lender Request Form. Complete the form with your desired lender and return to the Central Financial Aid Office.
You will need to log into Genisys to accept your loan once it is offered. Please remember, accepting your loan is not a guarantee you will receive the loan. Your lender must first run your credit history to see if you have adverse credit.
The applicant will then be mailed a promissory note from the lender of choice, or the student may submit the application/promissory note directly to the lender online, in paper, or over phone (depending on the lender's preferred method of collection).
Once the lender receives the student's application and the school's certification, the funds will be disbursed to the school at the appropriate time. The loan is generally disbursed by the lender in at least two equal installments to Regent University and then posted to the student's account if eligibility is maintained. Refunds follow the normal university refund procedure.
Important Information About Certification
Please know that Regent University will be working diligently to ensure your Graduate Plus Loan is certified in a timely manner. While not expected, should any delays occur, we will do our best to notify applicants and offer possible alternatives.
What About Repayment?
As with your Federal Stafford Loan, new Graduate PLUS loans that were disbursed on or after July 1, 2008 will have a 6 month grace period upon a change in your enrollment to less than half-time. Graduate PLUS loans disbursed prior to July 1, 2008 will continue to go into repayment immediately upon enrollment change to less than half-time.
LOAN ELIGIBILITY
In order to qualify to receive a student loan (Stafford or private), a student must be enrolled and attend classes/submit assignments on at least a half-time basis, regardless of stage of his/her program. Half time is defined as follows:
Minimum number of credits for loans: |
Fall | Spring | Summer |
Undergraduate |
6 | 6 | 6 |
GLE - Business & Leadership (Graduate) |
5 | 5 | 5 |
Other Graduate Students (non-Doctoral) |
5 | 5 | 3 |
Doctoral Students |
3 | 3 | 3 |
If a student plans on dropping below these levels, he/she should contact Central Financial Aid before making any final decision or submitting paperwork. Your counselor will go over with you how dropping below half-time status will affect your loan situation.
The total loan amount a student is eligible for is based on the following formula:
Cost of attendance (COA) - Aid (scholarships, etc.) = Total Loan Eligibility
The following formula determines a student's eligibility for a Subsidized Loan:
COA - Expected Family Contribution (EFC) - Aid = Subsidized Loan Eligibility.
APPLYING FOR AID
Students are encouraged to begin the financial aid application process in conjunction with the required admissions application activity. Although a financial aid award cannot be made until a student is accepted, all necessary paperwork will be on file to expedite the awarding process upon acceptance. Students interested in borrowing a Federal Stafford Loan should complete the Free Application for Federal Student Aid (FAFSA) as soon after January 1st as possible or when previous year’s taxes are completed. Central Financial Aid suggests submitting the FAFSA by March 15th to ensure timely processing and arrival of funds for the Fall semester.
The FAFSA may be submitted one of two ways. The student may fill out the paper application or complete the FAFSA-on-the-Web. The location of FAFSA-on-the-Web is www.fafsa.ed.gov. Submitting the FAFSA online greatly reduces the processing time of the application and requires the submission of a signature page.
Early submission of applications helps to ensure the arrival of funds by the final payment deadline. It also allows for necessary information to be available when Central Financial Aid begins the awarding process.
Where can I Find More Information?
General information can be found on finaid.org or on our recommended lenders websites.
What is Adverse Credit?
Unlike private alternative loans, Graduate Plus Loans are not based on your credit score. This difference should make the loan more easily obtainable for those with little or no credit history.
Adverse credit includes the following:
- Currently 90 days or more delinquent on repayment of any debt.
- Has had debt discharged in bankruptcy during the past five years.
- Evidence of a default, foreclosure, tax lien, repossession, wage garnishment, or write-off of a Title IV debt during the past five years.
