Federal Direct GradPLUS Loan Terms

Federal Direct GradPLUS Loans

  • Maximum loan limit is the difference between your student financial aid budget and all other aid. For example, if you have a student budget of $78,700 and Stafford loans of $20,500, you can borrow a maximum amount of $58,200 (plus loan fees).
  • Interest rate is fixed annually.  The rate for the 2014-15 academic year is 7.21%
  • Loans disbursed after December 1, 2013 have a fee rate of 4.288% and they are deducted from the loan amount prior to disbursement. You most likely will want to increase your loan amount by the deducted fees in order to net the exact amount you need. We will increase your budget for the fee amount and process the loan at the higher amount. Additionally, the fee will be eligible for LIPP.  For example if you decide you'd like to borrow $10,000 the fee would equal $448. You would add the $448 to the $10,000 for a total loan amount of $10,448.
  • Loan disbursed after December 1, 2014 will have a fee rate of 4.292%.
  • You will have a six month post enrollment deferment and your first payment will be due in the seventh month after the last day of class in the year you graduate or withdraw from Harvard Law School.
  • You must pass a credit check and not have adverse credit. You are considered to have an adverse credit history if you are 90 or more days delinquent on any debt or if, within 5 years of the date of the credit report, you have been the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, write-off of a Federal Student Aid debt (for example, a Federal Direct Loan), or an open collection account.
  • You must complete a Direct GradPLUS Loan application at the federal student loan site via our application page.
  • Federal benefits such as deferment, forbearance, consolidation, and death and disability apply to this federal loan program.
    • Deferment is a postponement of payment on a loan that is allowed under certain conditions such as enrollment in a degree seeking program.  No payment would be required while in deferment.
    • Forbearance is a postponement of payment on a loan, typically if the borrower doesn't qualify for a deferment and is unable to make payments for a reason such as poor health or unemployment. Interest continues to accrue during forbearance and using forbearance does not adversely affect your credit history. Your loan will remain in "good standing" and avoid default by using this benefit.  You are eligible for up to 36 months of forbearance.
    • Consolidation is program by which you rewrite the terms of your federal loans to a new and fixed interest rate based on the weighted average of the loans you wish to consolidate.  
    • Death and Disability is a discharge from the obligation to repay a student loan
Last modified: June 05, 2014