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A Graduate PLUS Loan is an option for students who require additional funding for graduate school after maximizing grants, scholarships, and Direct Stafford Loans.
Eligibility for the Graduate PLUS Loan is based on the student's credit history; the student cannot have an adverse credit history.
Loan Interest Rate
The interest rate is a fixed 7.9%. Students are responsible for the interest during all periods. Students are able to defer payments during school, although interest will continue to accrue.
Loan Origination Fee
There is a 4% loan fee on all Graduate PLUS Loans disbursed after July 1, 2011. For the 2011-2012 academic year, there is a 1.5% up-front interest rebate, which reduces the total fee to 2.5%. Beginning with the 2012-2013 academic year, the up-front interest rebate will no longer be available.
Annual Borrowing Limits
The maximum loan amount is the Cost of Attendance minus any other financial aid teh student receives.
Disbursement
Loan proceeds pay directly to the student's tuition account.
How to Apply
1. Request your borrowing limit via e-mail to st_loans@smith.edu
2. Decide how much to borrow
3. Apply for lender approval at www.studentloans.gov
4. Complete a Master Promissory Note (MPN) at www.studentloans.gov
5. Complete Graduate PLUS Entrance Counseling at www.studentloans.gov
6. Submit a TIV Authorization Form.
What Happens Next
• PLUS Loan requests are transmitted to Smith
• Credit-approved loans are reviewed for Smith approval
• Approved loans are originated (created in our system and transmitted to the Department). The Department then sends disclosures about the newly created loans directly to borrowers.
• Originated loans linked to valid MPNs disburse on a weekly basis, but not earlier than 10 days before the start of each term.
• The Department assigns disbursed loans to servicers (companies that will manage the loans). Servicing includes, but is not limited to, billing, payment processing, deferment requests, etc.
Repayment
Repayment of the loan begins six months after the student leaves Smith College, graduates, or ceases to be enrolled at least half-time. The six-month timeframe is considered the grade period.
You can estimate your monthly loan repayments using the Federal Loan Calculator: http://www.direct.ed.gov/calc.html.
Exit Counseling
Students who have borrowed through the Federal Direct Graduate PLUS Loan program are required to complete exit counseling if they are no longer enrolled at least half-time. Smith College will be notified electronically when this requirement has been completed.
Visit the National Student Loan Data System web site.
For loan-related questions, please contact us at st_loans@smith.edu
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