The Graduate PLUS Loans

You can find more information about medical school loans in “How to Pay For Medical School Part 2: Loans.”

Graduate PLUS Loans Quick Facts:

Loan Type	Lender / Repayment Period	Eligibility	Interest Rate	Maximum Award	Deferment
Direct PLUS	Federal Government, 10-30 years repayment	Credit history considered	Fixed; Changes yearly	Cost of Attendance – Other aid received = Maximum award	3 years for unemployment, 3 years for financial hardship
Indirect PLUS	Private Banks, 10-25 years repayment	Credit history considered	Fixed; Changes yearly	Cost of Attendance – Other aid received = Maximum award	3 years for unemployment, 3 years for financial hardship

What you need to know about the Graduate PLUS Loans

The Graduate PLUS loan is a supplementary medical school loan intended to fill in any financial gaps remaining after you apply for the Stafford Loans and other medical school financial aid. The amount you are awarded is entirely dependent on the aid you have received from other medical school loans.

Unlike the Stafford Loans, your credit history will determine your eligibility for a Graduate PLUS Loan.

There is a 4% fee for the loan, charged fractionally on each loan disbursement.

Repayment begins 60 days after final payment is sent to you. In other words, you will begin paying almost immediately after graduation.

On deferment: When you defer a Grad PLUS Loan, you do not have to make any payments nor do any additional interest charges accrue during the deferment period. You can defer payment for 3 years if you can’t find employment, and for 3 years if you are experiencing economic hardship. You can potentially defer payment and interest for 6 total years.

You must apply for a deferment, so don’t assume that you can begin a deferment period whenever you want it to. If you are beginning to experience financial difficulties, contact your school as soon as possible to begin the deferment application process and avoid any late penalties.

For a complete list of the common medical school loans, read “How to Pay For Medical School Part 2: Loans.”