Is the Grad PLUS loan subsidized?

Yes, there is a loan fee on all Direct PLUS Loans. The loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement.

What is the difference between a Grad PLUS loan and an unsubsidized loan?

The maximum amount that you can borrow under the federal Direct Unsubsidized Loan program for graduate school is $20,500 a year, with a maximum lifetime limit of $138,500. But a graduate PLUS loan allows you to borrow up to the cost of attendance, minus any other financial aid received.

Is a PLUS loan subsidized or unsubsidized?

Direct PLUS loans have a fixed interest rate and are not subsidized, which means that interest accrues while the student is enrolled in school. You will be charged a fee to process a Direct PLUS Loan, called an origination fee.

Is Grad PLUS loan a federal loan?

The Graduate PLUS Loan, or Grad Plus loan, is a type of federal student loan or Direct PLUS Loan issued by the U.S. Department of Education. A Grad Plus loan is designed to help graduate students finance their education.

Are Grad PLUS loans eligible for loan forgiveness?

Yes. Direct PLUS Loans are made to graduate or professional students and to parents of dependent undergraduate students. Like other Direct Loans, Direct PLUS Loans are eligible for PSLF.

Do graduate PLUS loans accrue interest while in school?

Tip: If you take out Grad PLUS Loans, you won’t have to start making payments until six months after you graduate, leave school, or drop below half-time enrollment status. However, interest will continue to accrue on the loan while you’re in school and during the six-month grace period.

Do Grad PLUS loans qualify for loan forgiveness?

Do graduate PLUS Loans accrue interest while in school?

What does PLUS loan stand for?

A PLUS loan, also known as a direct PLUS loan, is a federal loan for higher education available to the parents of undergraduate students, in addition to graduate or professional students. 1 PLUS stands for Parent Loan for Undergraduate Students.

Are PLUS loans tax deductible?

Yes, the student loan interest, on a parent plus loan, is deductible since the loan was taken out when the student was your dependent. For additional information, see the following TurboTax Article: What is a 1098-E: Student Loan Interest.