Federal Grad PLUS Loans

The Federal Grad PLUS Loan is designed for graduate and professional degree students. Like Federal Stafford Loans, your college or university will participate in either:

• The Federal Family Education Loan Program (FFELP) — where banks, credit unions and savings banks fund the loans.



• The William D. Ford Federal Direct Loan Program (Direct) — where the U.S. Department of Education provides the money for the loan through the college or university.

Loan Facts

A few Federal Grad PLUS Loan facts:

• You must complete the FAFSA.



• You must pass a credit check in order to borrow these funds.You must have applied for the annual loan maximum eligible under the Subsidized and Unsubsidized Federal Stafford Loan program before applying for a Federal Grad PLUS Loan.



• The interest rate is fixed at 8.50% (FFELP) or 7.90% (Direct).



• The loan limit equals the COA (Cost of Attendance), minus other financial aid received.



• There is no cumulative lifetime maximum.



• There is no federally guaranteed grace period; generally, repayment begins within 60 days after the final loan disbursement for the academic year. However, Iowa Student Loan will defer repayment while you're enrolled on at least a half-time basis. To opt for deferment, you must provide Iowa Student Loan with certification that you are enrolled on at least a half-time basis.



• Repayment begins once you graduate, leave school or drop below half time. If you have Stafford Loans in a grace period, you may also request a forbearance on your Grad PLUS Loan from Iowa Student Loan to align your repayment begin dates.

Find a serviced lender.

Apply for Your Loan

You may complete the Federal Grad PLUS Loan Application and Master Promissory Note online, if you're attending a FFELP college or university in Iowa.

	U.S Bank Borrower Benefits
	U.S. Bank will provide a 0.25% interest rate reduction to borrowers who pay by Auto-Debit. Auto-Debit is a requirement to be qualified for the 0.25% interest rate reduction benefit. If the Auto-Debit feature is canceled or Iowa Student Loan receives three non-sufficient funds payments in a 12-month period, the rate reduction benefit is lost. U.S. Bank will also provide a 1.00% credit of the original principal amount after the first 12 consecutive monthly on-time payments for loans first disbursed on or after June 1, 2008, and before Sept. 1, 2008. (Payment received no more than 10 days past the due date.) Note: If you are a first-time borrower, your loan may not have a first disbursement date before Sept. 1, 2008. Eligibility Requirements To be eligible for the Federal Grad PLUS Loan Borrower Benefit offered by U.S. Bank, the borrower must: Be the recipient of a Federal Grad PLUS Loan disbursed on or after June 1, 2008. Borrow a Federal Grad PLUS Loan from U.S. Bank. Important Notice: Borrower Benefits may be modified or discontinued at any time without notice and at the sole discretion of U.S. Bank. Subsequent changes, however, will not affect loans already qualified for Borrower Benefits.