Graduate PLUS Loan

The Graduate PLUS Loan is available through the Federal Family Education Loan Program (FFELP) to help graduate students pay for their education. However, Graduate PLUS Loans should only be used after exhausting your maximum annual Stafford Loan eligibility. Graduate students must first borrow the annual Stafford maximum limit of $20,500 ($8,500 maximum Subsidized) before receiving a Graduate PLUS Loan.

Graduate PLUS Loans are not based on financial need but may not exceed the total cost of attendance less any other financial aid. At Ole Miss graduate students who have filed the Free Application for Federal Student Aid (FAFSA) may apply regardless of their income, assets, or those of any dependent children.

• Payments are deferred as long as the graduate student remains at least half-time

• The fixed interest rate is 8.5%.

• There is no prepayment penalty.

• The credit criteria are generally more lenient than for private loans.

• Eligible to be consolidated with Stafford and Perkins Loans.

• In cases of economic hardship, repayment may be deferred for up to three years.

• In the event of permanent disability or death, the loan will be forgiven.

In addition to having completed a FAFSA and first exhausting the $20,500 in annual Stafford Loan eligibility, a graduate student must be enrolled in school at least half-time and must maintain Satisfactory Academic Progress. The Office of Financial Aid determines the amount of Graduate PLUS Loan eligibility in accordance with federal requirements.

Eligibility for the Graduate PLUS Loan depends on a modest credit check that determines if the graduate student has what is termed an “adverse credit history.” An “adverse credit history” is defined as being more than 90 days late on any debt or having any Title IV debt within the past five years subjected to default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, or write-off.

Graduate students may borrow up to their total cost of attendance less other financial aid received such as grants and scholarships. On the graduate student’s financial aid award package this is listed as an “estimated Graduate PLUS Loan,” which will show you how much could potentially be applied for to be borrowed. The total cost of attendance is determined by the Office of Financial Aid based on an average cost for tuition, books, room and board, travel, and miscellaneous expenses for the academic year. It is important that each individual to fully understand how a Graduate PLUS Loan will impact them financially. Most financial experts advise that one should not incur debt (excluding mortgage debt) that results in total monthly payments (debt-to-income ratio) exceeding 20% of your monthly gross income.

The interest rate is fixed at 8.5%.