The maximum amount that can be borrowed in federal PLUS loans is the difference between the cost of attendance and the rest of the financial aid received. This means that these loans can be used to fully cover the remainder of school expenses if necessary, but keep in mind that interest rates on these loans are about 2.55 percentage points higher than Direct subsidized and unsubsidized loans for undergraduates.

Federal Student Loans for Graduate School

If you already have an undergraduate degree and are attending graduate or professional school, there are additional student loans from the federal government that you can take out to finance your education.

The interest rates on these loans are about 1.55 percentage points higher than undergraduate federal student loans and do not depend on your credit history.

• $20,500 annually while in graduate school
• $138,500 in total (this total includes any federal loans taken out as an undergraduate)

Graduate students also have the option of taking out additional PLUS loans. These are very similar in terms and conditions to the parent PLUS loans that can be taken out for undergraduate education, except these loans are taken out by the student, who is now considered independent.Continue reading→