Federal Grad PLUS Loan

for graduate and professional students

Beginning with the 2006/2007 academic year, the Financial Aid & Scholarship Office will offer a new loan program to students in a masters or professional degree program - The Federal PLUS Loan for Graduate Students.

Preliminary Criteria

You must have already submitted a Free Application for Federal Student Aid.
You must have been awarded by the SJSU Financial Aid and Scholarship Office in order to be eligible for the Grad PLUS.
You must apply for the maximum amount from the Federal Stafford Loan Program before a Grad PLUS will be considered.

Interest Rate

Grad PLUS Loans for Graduates made on or after July 1, 2006 will change to a fixed rate of 8.5%.

The interest rate for the Fall 2007 - Spring 2008 academic year is:
Fixed 8.5% while in school and during grace-period
Fixed 8.5% during repayment
This rate is effective July 1, 2007 through June 30, 2008.

Deadline to apply:
Fall only loan: Dec. 1, 2007
Academic year or Spring only loan: May 1, 2008

Eligibility Requirements

The student must meet credit eligibility requirements. You may not have any debts that are delinquent 90 days or more, defaulted loans, outstanding tax liens, unpaid judgments, or any bankruptcy, foreclosure or wage garnishment within the past five years. If you cannot meet the credit eligibility, you may still receive a Grad PLUS loan if you know someone who can and who is willing to cosign on your loan.

Repayment Information

Repayment on a Grad PLUS loan begins within 60 days of the loan being fully disbursed. The lender will determine the repayment schedule.

Maximum Amount

You may borrow up to the full Cost of Attendance (budget) (as determined by the SJSU Financial Aid and Scholarship Office)

Enrollment Requirements

A student must be continuously enrolled for at least four units (half-time enrollment) in a Masters Degree program to receive the loan. If the student drops below half-time at any time during the loan period, he/she will not be eligible for the loan proceeds. Disbursements arriving after the end of the term will be returned to the lender if the student has not received satisfactory grades for the minimum number of units required. Unsatisfactory grades are as follows: F,I,U, RD,NC,AU,WU and W.

Disbursement of Loan Proceeds

Upon approval, your lender will send the Grad PLUS funds directly to SJSU through the Electronic Funds Transfer (EFT) process. The funds will be credited to the student’s account and any excess will be disbursed to the student by the Bursar's Office. All loans are issued in one disbursement per semester. The second disbursement will arrive at the beginning of the Spring semester for an academic year loan.

PLUS Loan for Graduates Application Process

Step 1: Choose a lender

Choose a lender. We encourage you to research each lender's benefits and programs.

Step 2: Call the lender

Call the lender's 800 number to obtain a pre-approval or denial by phone. If you are denied a Grad PLUS loan, be sure to check with your lender to see if you can qualify for an alternative loan.

Step 3: Electronic notice

SJSU will receive an electronic notice of your pre-approval or denial from your lender.

Step 4: Certification

SJSU will electronically certify your eligibility and the maximum amount you may borrow based on your financial aid award.

Step 5: Complete the Master Promissory Note (MPN)

EDFUND, the California State Loan Guarantor, will send you an MPN to complete and return to the lender of your choice.

Step 6: Disbursement

Loan funds will be credited to your student account. After outstanding registration fees and tuition have been deducted, any excess funds will be mailed to you by the Bursar's Office.

Additional Information

The student must have been awarded by the Financial Aid Office in order for SJSU to certify the Grad PLUS loan. Please do not apply for the Grad PLUS loan prior to being awarded.

Summary

Who Can Apply?

Graduates only

Application:

Grad PLUS Loan application &
Promissory Note

Interest Rate 2007-2008:

8.5% fixed rate while in school and during grace period
8.5% fixed rate while in repayment.
Interest accrues immediately.

Repayment:

60 days after the final loan disbursement for the last period of enrollment

Loan Limits(annual):

The yearly limit on a Grad PLUS Loan is equal to your cost of attendance minus any other financial aid you receive

Lenders:

Banks, savings and loans, and credit unions under the FFEL Program.
Click here to choose a lender.

Loan Periods:

Fall, Spring, Summer

Required Actions:

Entrance Loan Counseling for first time borrowers

Disbursement:

Begins first week of classes

Deadline to Apply:

Fall only loan: Dec 1, 2007
Academic year or
Spring only loan: May 1, 2008

Did you know

Financial Aid & Scholarship Office
One Washington Square
San José, CA 95192-0036
408-283-7500
fao@sjsu.edu
Fed. School Code: 001155

Financial Aid Map Location