All GradPLUS applicants are required to exhaust the full amount available to them in the Federal Direct Unsubsidized Loan program before submitting a GradPLUS application.
When applying for a GradPLUS loan you will need to indicate the total amount you want to borrow for the entire academic year since funds are disbursed in two equal amounts at the beginning of each term per federal regulations.
GradPLUS loans have a 4.228% loan fee that is deducted from the total loan amount prior to disbursement, therefore, you will want to consider whether or not you should increase your loan request by the amount of this fee in order to net a certain amount of money. We will automatically add the 4.228% fee amount to your student budget when we process your GradPLUS loan request. If you decide, at a later date, that you would like to reduce the overall loan amount, you may do so by contacting our office or completing the loan transaction form.
When determining the amount for which you’d like to apply, it is important to consider what impact the fee deduction will have on your net loan disbursement amount. Some options incorporate the fee automatically while others require you to specify that the fee is included by the amount you list.
On the GradPLUS application (link below), there are three loan amount request options. Please read each option carefully:
- First Option: “Borrow the maximum amount”. You may choose to borrow the maximum amount. If you choose this option we will process your loan for the difference between your student budget and all other financial aid. We will automatically add the 4.228% fee to your maximum loan amount and increase your budget to account for the additional fee.
- For example: if your Student Budget is $107,000 and you are receiving an HLS grant of $15,000, an HLS loan of $10,000, and a federal direct unsubsidized loan of $20,500 you will have room in your student budget for a maximum loan of $63,700 ($107,000 minus $15,000 minus $10,000 minus $20,500 = $61,500). By clicking on this first option, you do not need to do any math since we will automatically process your loan for an amount that includes the 4.228% fee. Your gross loan amount will be $64,215 ($61,500 maximum loan amount divided by 0.95772 = $64,215). Your budget would be increased by $2,715 for the loan fees.
- Second Option: “Specify an amount”. You may specify the amount you want to borrow within the limit of your student budget minus all other financial aid. We must process the loan for the exact amount you specify. When choosing this option we will automatically increase your student budget for the amount of fees that will be deducted from the total loan amount requested, however, we cannot automatically add the loan fees to your requested loan amount. If choosing this option, you will first want to determine the net amount of the loan that will be disbursed. The net amount is the amount after the loan fees have been deducted.
- For example: If you only want to cover tuition of $70,430, then you will want to request $70,430 plus the loan fees so that the loan will disburse for $70,430. You will need to list your loan amount as $73,539 ($70,430 divided by 0.95772) in order to net a disbursement of $70,430.
- Third Option: “I Don’t know the amount I want to borrow”. You should NEVER choose this option since it will cause significant delays in processing your loan. Instead, call our office at (617) 495-4606 or email email@example.com with any questions you have about the loan amount.