Graduate PLUS is a type of federal student aid, in the form of student loans, which is available to graduate and professional students. Similar to the Parent PLUS loan for parents of dependent undergraduate students, the Graduate PLUS loan is an unsubsidized federally guaranteed education loan with no annual or aggregate limits. It has no grace period and it goes into repayment as soon as the funds are disbursed to the borrower. It has the same deferment and forbearance options as the federal Stafford loan program. As such, graduate and professional students can postpone repayment using in-school deferment while enrolled at least half-time in a degree or certificate program of study.
As of August 2011, interest rates on Federal Family Education Loan Program (FFELP) Federal PLUS loans are fixed at 7.9%. Many lenders offer borrower benefits to reduce this interest rate during repayment. During any period of deferment or forbearance, interest can accrue and be capitalized to the principal loan balance at the end of the deferment or forbearance period if it is not paid by the borrower as it accrues. There is also a 4.0% origination fee attached to the loan that, due to regulations, cannot be paid by the lender on the borrower's behalf.
Read more about Grad PLUS: Eligibility
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... The federal Graduate PLUS loan is a federally guaranteed loan that is borrowed from a bank or other lending institution (e.g ... Access Group, Sallie Mae) and must be certified by one's school of attendance ...