New PLUS loan program to help graduate and professional students pay for college - Effective for loans certified by the educational institution on or after July 1, 2006, a graduate or professional student may borrow a Federal PLUS Loan! With benefits similar to the traditional PLUS loan for parents, the graduate student PLUS loan program (Grad PLUS) allows graduate or professional students to borrow up to the cost of education at a particular institution minus any other financial aid. There are credit requirements for the graduate student loan, but no debt-to-income ratios or credit scoring are used. The Grad PLUS loan is meant to fill the gap between your financial aid package and the cost of education - your school must determine your Federal Stafford Loan eligibility before you apply for a PLUS loan for graduate students. With the graduate student PLUS loan, the student is the borrower and not the parent.

The graduate student PLUS Loan interest rate is a fixed rate of 8.5 percent, though some lenders may offer discounts on the rate. With high approval rates and a low, fixed student loan interest rate, this new Federal PLUS loan option gives graduate and professional students an alternative to private student loans. Since private student loans often have variable interest rates, the fixed rate of the Grad PLUS loan allows for better debt management and can result in significant savings.

The Office of Financial Aid at ETSU requires you to complete the Free Application for Federal Student Aid (FAFSA) to determine other and/or further eligibility.

Grad PLUS Preferred Lender Selection Form

Remember, you may request your student loan through any lender.  If your lender is not shown on the Lender Selection Sheet, you may write in the name of the lender you wish to borrow from and you must provide ETSU with the application.

Please be aware that the benefits offered by lenders to student loan borrowers vary and are subject to change.  Before selecting a lender, please contact various lenders of interest and review their borrower benefits to determine which lender best meets your educational borrowing needs.  The lenders listed on our Preferred Lender list have demonstrated their commitment to offering ETSU students the best overall terms and services over the life of their loan.

ETSU does not receive any monetary benefit from any lender.

HOW DOES ETSU SELECT ITS PREFERRED LENDERS?  Our preferred lenders are selected on the basis of:

·        Ability to transmit/process loan information electronically

·        Advantages offered to students

·        General student feedback, student preferences over time

·        Track record of performance with ETSU

·        General input from the business community; professional contacts in the student financial aid community, and ongoing review of appropriate professional business and trade journals

·        Determinations are made on an annual basis by the Director in close consultation with the Assistant Directors