Of
the ARTS 2008/2009
Federal
PLUS Loan for Graduate Students
Graduate students with good credit histories and who
are registered at least half time are eligible.
The borrower must be a
Federal standards of creditworthiness are substantially
more flexible than those required under private loan programs. You must pass a credit review and you must
not have adverse credit history, defined as:
*A
current 90-day delinquency
*Debt
discharged in bankruptcy during the past five years
*Evidence
of a default, foreclosure, tax lien, repossession, wage garnishment,
or write-off of a Title IV debt during the
past five years.
If you do not meet the credit criteria you can apply
with a co-borrower, who must meet the credit criteria. The co-borrower promises to repay the loan if
the borrower fails to do so as agreed.
GradPLUS Loan credit decisions are good for 180 days.
The maximum amount that may be borrowed in a year is
the student’s cost of attendance, minus any financial aid received. Please refer to the budget worksheet within this information to assist you in
determining the amount you will need to borrow.
Borrow only what you need, this is a loan and must be repaid. It is in your best interest to read all information
regarding any loans.
As of
Generally, the repayment period is 10 years. There are, however, various loan repayment
and consolidation programs available, either through a lender or through the
federal government that may extend the period of repayment. For more information on repayment, contact
the lender or the Office of Financial Aid
Monthly payments are calculated based on the amount
owed at the start of repayment. Payments
begin within 60 days of the final loan disbursement, Grad PLUS loans do not
offer a grace period. Deferments are
available, contact your lender for further information.
The federal government assesses an origination fee of 3%, which is deducted from each disbursement of the loan. The guarantee agency assesses a Federal Default Fee of up to 1%. Please check with your lender regarding these fees as all or a portion may be paid by the lender/guarantor.
To apply for a Grad PLUS Loan you need to access the lenders web-site or call the lender of your choice and complete the application/promissory note. After the loan has been approved the Office of Financial Aid will be contacted to certify the loan period and amount.
Loan funds are dispersed in two equal payments
during the loan period for which you are borrowing. Usually half will arrive in September, the
second half in January. Loan funds are
usually sent electronically to CalArts for disbursement to the students
account. If sent as a check, co-payable
to the borrower and CalArts, the check must be mailed to the borrower for endorsement,
which can cause delays in crediting the students account. Apply early.
Although you may use any lender that participates in
the Federal GradPLUS Loan program, CalArts has developed a list of suggested
lenders selected as a result of years of experience with student loan lenders
and their submission of our Request for Information.
The link below outlines each lender’s contact
information, fees, interest rate upon repayment, repayment incentives and
options. Contact the lender directly for
any updated information. You should
always review and verify exact terms, conditions, qualifications and
disclosures associated with any loan.
Students have the right and ability to select the
education loan provider of their choice and are not required to use any of the
suggested lenders.
Be aware that CalArts is not electronically
connected with every lender and guarantee agency. If you choose a lender not listed be sure to
provide the financial aid office with their contact information. If the lender you choose issues their disbursements
via paper check it is VERY important that you apply EARLY to ensure receipt of
funds before the date of registration.
All information is accurate as of