Federal Loans
While private loans are available to U.S. citizens and naturalized persons attending U.S. universities, most domestic students apply for federal loans. There are two Congressional Acts that will help with repayment plans, but the recent debt ceiling bill made changes to some aspects of student loans for graduate students. The changes WILL NOT affect the amount of funding available. However, the funding will become a little more expensive. Students eager to attend the Heller School, or any graduate school, will be able to receive all the funding they need if they meet all the Federal requirements and have a good credit rating required for a Grad Plus Loan. Funding levels themselves have not changed.
The first change takes effect with the 2012-2013 academic year, July 1, 2012 to June 30, 2013. At this point, all Federal Direct Stafford Students Loans for graduate students will be unsubsidized, accruing interest while the student is in school and for the six-month grace period. The total amount a graduate student can borrow will remain the same. As written, the change begins with loans made after July 1, 2012, so it will not affect Summer 2011, Fall 2011 and Spring 2012 loans and those loans made before this year. (The loss of the interest subsidy will add on 6.8% per year in school for the first $4250 of a Direct Student Loan per term, or $289.)
The second change is the loss of the “origination fee rebate” on each loan, whether unsubsidized or subsidized, for Stafford and Grad PLUS Loans. Currently, there is a 1% fee on each Stafford and a 4% fee on each Graduate PLUS Loan, but a portion of the fee is rebated at the time of disbursement, so the student effectively loses only 0.5% on Stafford and 2.5% on PLUS. Beginning July 1, 2012, the full fee will be charged.
The last change is the loss of the .25% interest rebate if you pay back your loans electronically, when in repayment, each month.
These changes will go into effect for loans borrowed for the 2012-13 academic year beginning July 1, 2012.
NOTE:
There have been no changes to the repayment benefits programs - IBR (Income Based Repayment) and Public Service Loan Forgiveness - that help many Heller students with manageable loan payments and possible loan forgiveness when you work in a nonprofit for 10 years.
Details on those Congressional Acts can be found at the Department of Education’s website.
The following are two of the most common federal educational loans that our students use:
Stafford Loans:
Stafford Loans are guaranteed educational loans. The maximum amount of Stafford Loans that a student may request in one academic or calendar year is $20,500. More detailed information about Stafford Loans (interest rates, repayment schedule, origination fee, etc.), as well as the required online application, can be found at www.fafsa.ed.gov. Stafford Loans are guaranteed loans. The only two conditions that would preclude a student from Stafford Loan eligibility would be (a) if a student has reached his or her maximum lifetime allowed (currently $138,500), or (b) if a student is in default status for a previously awarded Stafford Loan. To request a Stafford Loan, an admitted student must complete the online FAFSA application and submit a Brandeis University Stafford Loan Request Form to the Heller School Director of Financial Aid.
Graduate Plus Loans:
The Graduate PLUS Loan is a low, fixed interest rate student loan guaranteed by the U.S. Government that allows graduate students to borrow the total cost for their graduate school needs, including tuition, room and board, supplies, lab expenses, and travel, less any other aid. The Graduate PLUS Loan is a non-need, credit based loan similar to a private student loan with the benefit of having a fixed interest rate and federal guarantee. U.S. citizens or eligible permanent residents enrolled at least half time in a degree program can be considered for Graduate PLUS Loans.
Step-by-Step: Applying for a Graduate PLUS Loan
To request a Graduate PLUS Loan, please go to the Department of Education and select the “Sign In” button in the upper left-hand corner. (You will need your FAFSA PIN number to sign in. If you do not remember your PIN number, you can request a duplicate). Once you have logged in, you will need to complete three steps:
1. Application
Select the “Request PLUS Loan” option from the left-hand column. You will need to enter the amount of the loan you are requesting and choose Brandeis for the institution (Title IV school is 002133). Your credit will be checked to confirm your eligibility for a Graduate PLUS Loan. If you are denied for a credit reason, you will be able to appeal or add a cosigner through this website.
2. Entrance Counseling
Select the “Complete Entrance Counseling” option from the left-hand column. You will be provided information regarding the terms and conditions associated with the Graduate PLUS Loan program, and you will need to complete a short quiz regarding what you have learned from this introduction.
3. Complete the Master Promissory Note
Select the “Complete MPN” option from the left-hand column. You will be required to confirm your name and address, supply two references, and sign this form electronically. Please select "Brandeis University"; do not select "Brandeis University-Graduate School of Arts and Sciences" on the Department of Education's website. Steps 2 and 3 will only need to be done the first time you borrow a Graduate PLUS Loan, as your promissory note is good for up to ten years. This loan can only be posted to your SAGE account after all steps are completed. You will need to sign this Master Promissory Note even if you have already signed one for the Stafford Loan.
Upon your approval for a Graduate PLUS Loan, the Heller Financial Aid Office will send an award letter to you outlining the amount and disbursement schedule for your loans. You are not required to take this loan. If the cancellation of this loan will cause a balance due on your account, please first make other arrangements for your bill to avoid a hold being placed on your registration.
Once you have fulfilled all loan and course registration requirements, you may then file for a refund of your credit balance through Student Financial Services. The form is also available in their office.
How much can I borrow with a Graduate PLUS Loan?
The yearly limit on a Graduate PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. For example, if your cost of attendance is $60,000 and you receive $40,000 in other financial aid, you could borrow up to but no more than $20,000.
What kind of credit do I need?
A qualified Graduate PLUS Loan borrower does not have an adverse credit history (defined in regulations as being 90 days or more delinquent on any debt, or having a credit report that shows default, discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the five years preceding the date of the credit report). Note that Graduate and Professional Student Plus Loans do not use any kind of a debt-to-income ratio or FICO® score, unlike private education loans.
Do I need a co-signer?
Graduate students with good credit should not need a co-signer to apply for the loan. You might need a cosigner if your credit is insufficient. If you are denied, you can re-apply with a cosigner.
What is the interest rate on Graduate PLUS Loans?
Graduate PLUS Loan rates are fixed at 7.9%. Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full.
What fees are associated with Graduate PLUS Loans?
Graduate PLUS Loans have a federal origination fee of 2.5%.