Decoding Grad PLUS Loans: A Comprehensive Guide for Anesthesiologist Assistant Students

Written by the Team at BagMask.com

As an Anesthesiologist Assistant student, the myriad of options available to fund your education can often seem overwhelming. Sometimes even more daunting though is trying to figure out how to cover living expenses. How do I pay for housing? What about food? What if I need childcare?

Luckily, there are certain federal student loans that offer effective solutions to tackle these concerns. In particular, the Grad PLUS loan, a part of the Direct Loan Program, comes to the rescue to address these needs. This article will guide you through the ins and outs of Grad PLUS loans, shedding light on the eligibility criteria, current interest rates, repayment plans, and more.

What is a Grad PLUS Loan?

As a component of the federal Direct PLUS Loan program, a Grad PLUS Loan usually comes into play when a student exhausts the limit of their federal Direct Unsubsidized Loan, another type of federal student loan. The annual limit for a Direct Unsubsidized Loan stands at $20,500.

The Graduate PLUS Loan might be an appropriate solution for you if you've hit that limit yet require additional resources to finance your graduate education. They offer a viable financing solution to address the multifaceted costs associated with graduate education.

What Does it Cover?

Grad PLUS loans cover more than just tuition and fees; these loans extend to a range of other education-related expenses.

The funds can be used towards securing housing, ensuring students have a comfortable and conducive environment to focus on their studies. Fortunately, this support also extends to meals. So you don’t have to worry about passing out in the OR from not eating!

Vital educational resources such as textbooks or a computer can be purchased by Anesthesiologist Assistant students. Other essential school supplies also fall within the umbrella of allowable expenses such as pens, notebooks, stethoscopes and scrubs.

Moreover, transportation costs to and from the campus are also accounted for under the Grad PLUS Loan provisions.

And for parents, childcare costs can be covered with these funds!

What Are the Costs Associated with Grad Plus Loan?

The Federal Direct Graduate PLUS Loan offers a borrowing limit that extends to the total student budget, deducting the total financial aid obtained from all other sources. The interest rate for the loans disbursed for the academic year 2022-2023 is fixed at 7.543%.

The U.S. Department of Education applies a loan origination fee of 4.228% on these loans for any initial disbursement date falling before October 1, 2023.

To illustrate, if you secure a Grad PLUS Loan amounting to $10,000, approximately $9,577 will be credited to your account after the deduction of the origination fee. Keep in mind that approval of a Grad PLUS Loan hinges on credit approval by the U.S. Department of Education.

Eligibility for Grad PLUS Loans

To qualify for a Grad PLUS loan, a candidate must be enrolled at least half-time in a professional (law or medical) or graduate school. As a prospective Anesthesiologist Assistant student, don't worry: you’re covered.

However, it is important to consider the credit history of the applicant, as an adverse credit history could hinder the approval of the loan. While there isn't a specific minimum credit score, potential borrowers with bad credit, such as unpaid loans or bankruptcy, are advised to improve their credit standing before applying.

In cases where an applicant's credit history might prevent loan approval, options still exist. An endorser can be added to the application, similar to a cosigner, which could increase the likelihood of approval. Alternatively, parents of the applicant can apply for a Parent PLUS Loan to assist with education costs.

Lastly, students also have the option of providing documentation that there are extenuating circumstances relating to their adverse credit history. But this is not a guarantee that they will approve the loan.

How to Apply

Step 1: Fill out the FAFSA

The journey to securing a Grad PLUS Loan begins with completing the Free Application for Federal Student Aid (FAFSA). This pivotal step qualifies you not only for federal direct loans but also for other forms of financial aid that can substantially aid in funding your education.

The FAFSA collects information about your financial circumstances (and your parents' if you're a dependent student) to evaluate your eligibility for federal aid, including Grad PLUS loans. Schools also often use this information to award need-based scholarships.

You can complete the FAFSA online, via fax, or mail. Remember, the earlier you submit the FAFSA after it opens in October each year, the better.

Step 2: Undergo a Credit Check

Upon submitting your FAFSA, a credit check is run by the government. We already covered this so you know what to expect going into this part of the process.

Step 3: Review Your Loan Offer

Processing your FAFSA can take between three days and three weeks. Afterward, you'll receive your Student Aid Report, followed by a financial aid award letter from your prospective schools. This letter will detail your offered financial aid, including any Grad PLUS loans.

Upon receiving your financial aid package, review it thoroughly, keeping an eye on all the terms and conditions. Assess your aid offer against your actual borrowing needs. You can choose to accept all or a partial amount of the loan.

Step 4: Sign the Master Promissory Note

After determining the loan amount you wish to borrow, you need to officially accept the loan by signing a Master Promissory Note (MPN), confirming that you agree to the loan's terms. You can accomplish this by logging into the FAFSA portal, where you'll also need to submit a copy of your driver's license and contact details of two personal references.

Step 5: Undertake Entrance Counseling

The final step in securing your Grad PLUS loan is entrance counseling. This mandatory step is designed to ensure you fully comprehend the terms and conditions of your Grad PLUS loan, as well as your overall federal student aid package. If you've had a federal direct unsubsidized loan or direct PLUS loan in the past, you may be exempt from this step.

Repayment Options for Grad PLUS Loans

Like all Direct Loans, Grad PLUS Loans provide a payment hiatus while the borrower is still enrolled in school, plus a 6-month grace period post-graduation. Note that during training and the grace period your loans are accruing interest.

After this period, a 10-year repayment plan is typically initiated, but borrowers are free to repay their loans earlier without penalty. Alternatives include loan refinancing or joining an Income-Driven Repayment (IDR) plan, which offers loan cancellation or full repayment after 10 to 25 years, depending on various factors.

Grad Plus loans also qualify for loan forgiveness through the Public Service Loan Forgiveness (PSLF) program for public service workers. These benefits might be particularly appealing for anesthesiologist assistant students planning to work in non-profit hospitals.

Final Thoughts

Securing funding for your education as an Anesthesiologist Assistant student can be a complex endeavor. However, understanding the available options like Grad PLUS Loans can significantly lighten the financial burden.

Remember that this is an investment in your future and while student loans may seem daunting, they are tools designed to assist in achieving your academic goals. 

Don't let the financial aspects deter you from your path. Research, understand the implications, make informed decisions, and embark on your journey toward a rewarding career in the healthcare field.

Author: The Team at BagMask.com: The leading source to find Certified Anesthesiologist Assistant jobs.