Graduate students usually hit their federal unsubsidized limit before a program's full cost is covered. The Grad PLUS loan is the federal option built to bridge what is left. This guide explains how it works, what the credit review involves, and how it compares with private graduate borrowing. It is educational only.
What a Grad PLUS loan is
A Grad PLUS loan is a federal Direct PLUS Loan made to a graduate or professional student rather than a parent. The U.S. Department of Education administers it, and you request it through the FAFSA and StudentAid.gov.
- It can generally cover cost of attendance minus other aid, so graduate school borrowing limits follow your school's cost figures, not a flat cap.
- It is credit-reviewed, unlike Direct Unsubsidized Loans.
Eligibility and the credit review
Graduate PLUS loan requirements include half-time enrollment in an eligible program at a participating school and a filed FAFSA.
The PLUS loan credit check is not score-based underwriting: it reviews for adverse credit history as defined in federal regulation. If it does not come back clear, federal rules describe paths that may still allow borrowing — adding an endorser, or documenting extenuating circumstances.
Fees, interest, and repayment features
PLUS loans carry a fixed rate set annually by federal law and a Grad PLUS origination fee deducted from each disbursement, so you receive slightly less than you borrow but repay the full amount. Both are revised periodically — check current figures on StudentAid.gov. Interest accrues from disbursement.
What the fee buys is federal treatment: repayment options including income-driven repayment plans, plus federal deferment and forbearance.
How Grad PLUS compares with private loans
The honest grad PLUS vs private student loan comparison is a set of trade-offs:
- Rate. A strong-credit borrower may be quoted less by a private company than the fixed federal rate — the main reason people look.
- Fees. PLUS charges origination; some companies advertise none.
- Protections. Federal loans carry income-driven repayment, regulated deferment and forbearance, and forgiveness eligibility. Private relief is discretionary.
- Underwriting. PLUS applies an adverse-credit standard; private companies underwrite on credit and income, and many want a cosigner.
Sequencing your borrowing
A common order is grants and scholarships, then savings and work, then Direct Unsubsidized Loans — see subsidized vs. unsubsidized student loans — then Grad PLUS, then private borrowing for what remains. Borrow to the program's real cost, not the maximum available.
Compare what companies advertise
If you are weighing a private option, browse finance companies and compare advertised offers on APR, fees, and terms, and read the federal and private student loan comparison first.
Frequently asked questions
How much can you borrow with a Grad PLUS loan?
Grad PLUS borrowing is capped at your school's published cost of attendance minus other financial aid, not a flat annual figure, so the maximum varies by school and program. Federal PLUS rules have been revised before, so verify current terms on StudentAid.gov.
Does a Grad PLUS loan require a credit check?
Yes, but it is a review for adverse credit history as defined in federal regulation rather than a credit-score cutoff. If it is not clear, federal rules describe options such as adding an endorser, documenting extenuating circumstances, or completing credit counseling.
Is Grad PLUS better than a private graduate loan?
Neither is universally better. Grad PLUS charges an origination fee at a fixed federal rate but keeps federal repayment protections and forgiveness eligibility. Private companies may advertise lower rates to strong-credit applicants without those protections. Compare total cost against what you would give up.
Disclaimer: GoFunding.Shop is an advertising marketplace, not a lender, bank, broker, credit-repair company, or financial advisor. We do not approve applications, set rates, or guarantee funding. Always confirm the full terms — APR, fees, and repayment schedule — directly with the advertising company before you apply.