Graduate/Professional PLUS Loan – Frequently Asked Questions
- How do I know which lender to choose?
- How do I know if I’m eligible for a Graduate/Professional PLUS loan?
- I am a parent; can I take this loan for my son/daughter?
- What if I have bad credit?
- How much should I request to ensure the correct amount is disbursed?
- How do I change the amount of my loan?
- How do I change the disbursement dates?
- When does interest start accruing on the loan?
- Do I have a six month grace period after I graduate?
Graduate/Professional PLUS page
How do I know which lender to choose?
All FFELP education loans have the same interest rates and fees, however; lenders can reduce the cost of borrowing by offering borrower benefits. Lenders can also set themselves apart based on their quality of service. Here are some good reasons to choose VSAC as your lender:
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Borrower Benefits: annual rebates; no-fee Stafford loans; interest rate reductions
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Knowledgeable Staff: comprehensive knowledge of the loan process and repayment of loans; dedicated to assisting you
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Service: VSAC is your lender and servicer for the life of your loan; online payments; online account status information; combined billing for all of your VSAC loans.
How do I know if I’m eligible for a Graduate/Professional PLUS loan?
Your school’s Financial Aid Office determines your eligibility for financial aid, including student loans. Your Financial Aid Office can tell you if you are considered a graduate or professional student. For example, many students in law or medical school are considered professional students.
I am a parent; can I take this loan for my son/daughter?
The Graduate/Professional PLUS loan is for graduate/professional students to take in their own name. As a parent, you are not able to take a PLUS loan for your son or daughter if they are enrolled in graduate school (and therefore no longer considered a dependent).
Depending on the circumstances, the Graduate/Professional PLUS loan could still be an option. Many students can provide us with clarifying documentation in order to meet the PLUS loan credit criteria. Obtaining a credit-worthy endorser (similar to a cosigner) is another way to qualify for the PLUS loan.
How much should I request to ensure the correct amount is disbursed?
A 3% federal origination fee and a 1% federal default fee are deducted from PLUS loan proceeds at disbursement. To ensure the school receives the correct amount; divide the amount needed by the school by .96 and round this number to the nearest whole dollar.
How do I change the amount of my loan?
Contact VSAC to change the loan amount if:
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VSAC hasn’t asked your school to certify your eligibility
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your loan has been approved by VSAC, but the funds haven’t been disbursed to your school
How do I change the disbursement dates?
Your school’s Financial Aid Office sets the disbursement dates in accordance with federal regulations.
When does interest start accruing on the loan?
Interest starts accruing as soon as loan funds are disbursed to your school.
Do I have a six month grace period after I graduate?
Graduate/Professional PLUS loans do not have a six month grace period after graduation; however no payments are due while you are enrolled at least half-time at an eligible school. (Non-U.S. citizens attending a foreign school should contact VSAC to determine whether they are eligible to defer payments.)
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