Ineligible for Grad PLUS?

[tigress139]

I was recently accepted to Cincy's SMP (off the waitlist, so very last minute). I just got an email today with my financial aid award numbers. Apparently, I'm only getting $19,000 worth of subsidized and unsubsidized Stafford loans. There is no mention of Grad PLUS loans. Does that mean that I'm just not eligible for them? I was under the impression that everyone is eligible.

I will call the school on Monday but my program starts on 8/12 so I'm getting really antsy, and need to figure out my tuition and living budget fast. 🙁

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[Mattabet]

You're right to contact their financial aid office to figure it out. I believe that subsidized stafford > unsubsidized stafford > grad PLUS as far as repayment is concerned, so they probably want to give you the easier to pay back money first. If you need more, they'll tap the Grad PLUS loans... that's the order my school went in, anyway.

 

[Siverhideo1985]

I think the financial aid office is the only source that will be able to help you with this. All I know is that you do need a good credit history for GRAD plus loans, so if you have something on your record it might keep you from getting them.

 

[Siverhideo1985]

P.S.: Other options are private loans (w/ and w/o a cosigner) which usually have variable interest rates (very low right now, but who knows about the future)...this is also an option that your financial aid office will be able to help you with!

Best of Luck!

 

[Abdullaah]

Beware with the private loans though!! If you need more info pm me.

My econ prof would be so proud 😀

 

[CopToEM]

It's pretty hard to be ineligible for a GRAD Plus loan. This is straight from studentaid.ed.gov:

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, or writeoff of a Federal Student Aid debt (for example, a Direct Loan or Federal
Stafford Loan).

Note that it says if you are 90 or more days delinquent on any debt, not if you have been. So, that means as long as you don't have any standing debts that aren't settled you're fine. This is a fact that many people do seem to overlook when giving financial aid advice to students.

Also, note that it states the default/bankruptcy/discharge/foreclosure/repo/lien/garnishment/writeoff (man, that's a lot!) clause directly refers to Title IV loans. That is, federal student aid loans. Did you default on a car loan a few years back? Doesn't matter.

Even if you fail both of these eligibility requirements, if you can get a co-signer, you'll still get Grad PLUS loans.

An overwhelming majority of people have financial difficulties at some stage in their life. These very lenient requirements outlined by the fed are forgiving because of that fact.

It's likely you just need to initiate the process. They're offering you the basic aid and if you want aid beyond that then you just need to request it.

 

[FlowLimited]

It's pretty hard to be ineligible for a GRAD Plus loan. This is straight from studentaid.ed.gov:



Note that it says if you are 90 or more days delinquent on any debt, not if you have been. So, that means as long as you don't have any standing debts that aren't settled you're fine. This is a fact that many people do seem to overlook when giving financial aid advice to students.

Also, note that it states the default/bankruptcy/discharge/foreclosure/repo/lien/garnishment/writeoff (man, that's a lot!) clause directly refers to Title IV loans. That is, federal student aid loans. Did you default on a car loan a few years back? Doesn't matter.

Even if you fail both of these eligibility requirements, if you can get a co-signer, you'll still get Grad PLUS loans.

An overwhelming majority of people have financial difficulties at some stage in their life. These very lenient requirements outlined by the fed are forgiving because of that fact.

It's likely you just need to initiate the process. They're offering you the basic aid and if you want aid beyond that then you just need to request it.

This is absolutely right. You're more than likely eligible for Grad PLUS loans but you need to initiate the process. Go to aessuccess.org and apply for it.

 

[Podalarius]

You should be eligible for Stafford loans up to $40,500/yr (and a max of $225k total). Grad plus loans are more expensive, so they're just trying to save you some money.

 

[eschaton88]

I don't know if the grad loans are really different (I suspect not) but for undergrad PLUS loans I know you have to call your Finacial Aid office initialize it. Some will give you a direct loan and some you have to call a lender and go thru them. But you should have had something on your fin aid statement that said you were eligible. The school is probably trying to just get you the best deal possible.

Also I'm pretty sure that the PLUS loans are thru the government so the interest is better than private loans, just not as good as the Staffords.

 

[TMP-SMX]

If you only got $19,000, I'm assuming that your cost of attendance is that low. Otherwise, your actual maximum should be $20,500 in staffords. If your CoA is only 19,000 then you can't get any financial aid above that. Either way, talk to the FA office.