Graduate PLUS vs. Alternative Loans
Federal Graduate PLUS Loans are available to graduate and professional students, allowing a graduate student to borrow on his/her own behalf up to the standard graduate cost of attendance (Carnegie Mellon graduate cost of attendance information can be found on-line at www.cmu.edu/hub) less other aid received.
A Federal Graduate PLUS Loan is a non-need based loan given by a private lender (e.g., bank, credit union or other financial institution) to creditworthy graduate students. The interest rate is fixed at 8.5%. Graduate and professional borrowers who are enrolled at least half-time qualify for an automatic in-school deferment. Interest will accrue during the in-school period. A 3 % origination fee is assessed by the Department of Education.
All graduate students wishing to borrow a Federal Graduate PLUS Loan are required to complete the Free Application for Federal Student Aid (FAFSA), a Federal PLUS Master Promissory Note (MPN), and Federal Entrance Loan Counseling. Instructions can be found here. However, before receiving a Federal Graduate PLUS Loan, students must have applied for the annual loan maximum under the Federal Stafford Loan program (subsidized and unsubsidized). You can access a complete list of required documents, along with MPN completion instructions on the Financial Aid Application Process page located at http://www.cmu.edu/hub/fa/fa_grad_process.html.
The proceeds will be sent to Carnegie Mellon via electronic funds transfer (EFT.) They will be electronically deposited into your student account
at Carnegie Mellon. In some cases, you may be required to sign your Federal Graduate PLUS Loan check in The HUB before the proceeds can be credited to
your student account. These funds are disbursed no earlier than ten days prior to the first class day. If your loan has been approved but it has not
been deducted from your billing statement, you may subtract half of the annual amount from your bill.
RECOMMENDED LENDERS
Our website provides a comparative list of Carnegie Mellon’s recommended lenders for the 2008-09 academic year and explains our process for selecting recommended FFELP and Private lenders.
Students and parents have the right to select the lender of their choice and are not required to use any of our recommended lenders. Borrowers will not be penalized for selecting a lender that is not included on our recommended lender list.
Click here for a list of our recommended Grad PLUS Loan lenders.