Graduate Financial Aid

The graduate plus loan has become a very popular loan amongst graduate students over the past few years. What makes it enticing is the fact that it is a Federal loan even though you have to pass a credit check in order to be approved. It also can be combined with your Stafford loans from undergraduate school and grad school once you are completed with your studies.

A problem that some people face is getting approved for the loan. Many people have asked me how exactly the decision is made for approval on these loans. The approval process is not as stringent as private loan approvals. They also don’t require that you have an extensive credit history or even a steady income. What the lenders look at is if you have an adverse history on your credit report. If you do, and it’s not cleared up it will affect you from getting the loan. If you have something on your report from 2 or 3 years ago, that is cleared up, you should still be approved for this loan, however they may require that you add a co-borrower.

Another common question I get with this loan is if you can apply with a cosigner right off the bat. The answer is no. It is required that you apply on your own first, and if you get denied, you will then be given the opportunity to add a co-borrower. I also recently received a question on the financial aid forum regarding defaulting on a credit card and if this disqualifies you for receiving a grad plus loan. If this situation was resolved and account is now current, you should still be approved. However if the situation was very recently, chances are you will need a cosigner. However defaulting on a personal loan or line of credit is not the same as defaulting on a federal student loan and does not disqualify you for borrowing more Federal loans. FOr more information on the graduate plus loan, visit the GradPlusLoans.com information page.