Graduate PLUS Loan

General Information
Federal Graduate PLUS Loans are designed to assist students who need additional educational financing. Loan approval is based on credit worthiness and ability to repay. Grad plus loans are available to a student who is pursuing a degree program, enrolled at least half-time, and is maintaining Satisfactory Academic Progress. In addition, students must have completed the Free Application for Federal Student Aid (FAFSA). As with any loan, careful consideration should be made in determining amounts to be borrowed, as the loan must be repaid. Grad Plus is offered as an option along with Alternative loans. You can view a Q&A on the differences between these loans here.

Interest on the Grad Plus Loan for the 2007-2008 Academic Year
Interest rates for Grad Plus loans disbursed on or after July 1, 2006 is a fixed rate of 8.50% Interest is charged on the loan from the date the first disbursement is made until the loan is paid in full. Principal and interest can be deferred while you are enrolled at least half time.

Applying for a Grad Plus Loan
Tulane participates in the FFEL Grad Plus Loan program. To apply, a student must complete and submit a Grad Plus Loan application to a participating lender. Most lenders offer a "pre-approval" process and students can complete a form online or provide their information over the phone. Students must provide the lender with the LOAN AMOUNT REQUESTED and the LOAN PERIOD when completing a loan application.

Tulane encourages students to apply for a Grad Plus after they receive a financial aid award letter. Students interested in borrowing through the Federal Grad Plus loan program MUST complete a Free Application for Federal Student Aid (FAFSA) for the current academic year.

The yearly limit on a Grad Plus loan is equal to a student's cost of attendance (including tuition and fees, and an allowance for room, board, books, travel and miscellaneous) minus any financial aid the student is receiving.

Once the loan is approved and the Master Promissory Note signed or e-signed, the lender will send Tulane a request for school certification. School certification is the process by which Tulane verifies whether the student is eligible to receive the requested loan amount during the specified loan period. Financial Aid Counselors begin the certification process after July 1. Students will be notified by mail that the loan certification has been completed. Students who have not received notification of certification should contact our office at (800) 335-3210 or (504) 865-5723. Tulane will only certify Grad Plus loans that have are complete, signed, and approved by the lender.

Picking the right lender for your grad plus loan is an important decision. The preferred lenders below have worked with students to help students achieve their educational goals. So when you choose a streamlined lender, you're working with experts who understand your needs.

A : Absolutely. You can save hundreds of dollars by choosing a lender with the best repayment benefits. Benefits that are not contingent on making a certain number of on-time payments before the repayment benefits go into effect. However, their special benefits do differ!! Please review each lender benefits on their websites before making a decision. Note: All lenders below will charge a 3% origination fee and a 0% Guarantee fee.

A : Yes. All lenders are required by federal law to charge the same interest rate. Loans made on or after July 1, 2006 will have a fixed rate of 8.50%

A: Never borrow more than is absolutely necessary. Remember: The more money you borrow now, the more you'll spend paying it back. Only borrow what you need, try to limit your level of borrowing . Some lenders have a minimum amount they will lend. The maximum Tulane can certify is cost of education less other financial aid. A "other loan" amount will appear on your award letter. This is the amount Tulane can certify in either a Grad Plus loan or an Alternative loan.

A : Most lenders offer up to 10 years to repay a Grad Plus loan. Students should check directly with their lender to view the terms of their loan. Students will high indebtedness may want to check with the lender about consolidation.

A: Since the Grad Plus loan is based on creditworthiness a credit report will be pulled by the lender. If you denied a grad plus loan only the lender can discuss the reasons for a denial. You should contact the lender directly and see if there are any discrepancies on your credit report.

A : Yes. The "turnaround time" required by different lenders varies. However, by choosing one of our preferred streamlined lenders, the lender is committed to delivering fast, accurate loan disbursements as a top priority.

A : Servicers are companies that manage payments, address updates, deferments, and forbearance for borrowers.

A : Yes. When you call a servicer or lender, you can speak to a real person, not just a voice system. The customer service staff can answer all your questions about education financing.

The following is a list of Tulane's preferred lenders. Choosing one of these lenders will allow us to process the Grad Plus loan electronically and receive the funds via electronic funds transfer (EFT). However, students may select another lender (see note below*). Please be sure that the lender participates in the Federal Grad Plus loan program.

Students are encouraged to view each lenders website and review the benefits offered. You should apply directly with the lender. Most lenders will allow you to e-sign your Grad Plus Master Promissory Note (MPN) online.

Students are encouraged to view each Federal Graduate PLUS lender's website and review the benefits offered. General comparison information may be found on Tulane's Lender List pages located on ELM Select. http://www.elmselect.com/oll/SchoolLenderList/?schoolId=8282

As a service to our student and parent educational loan borrowers, Tulane's University Financial Aid Offices have attempted to identify a list of lending institutions who we believe offer quality customer service and benefits with their respective federal and/or non-federal loan products.

The composition of our list of suggested lenders is the result of our annual "request for proposals" (a/k/a "RFP") process, whereby interested lenders submit proposals for our consideration. The main criteria we expect from lenders include all of the following:

reliable customer service (including service during processing and repayment);
competitive loan products (including competitive fees and interest rates);
electronic disbursement of funds;
allowance for borrower electronic repayment of loan funds; and
cost saving benefits to borrowers throughout the life a loan.

The Tulane "Loan Committee" thoroughly reviews and researches each proposal received each year before finalizing a list of lenders meeting the aforementioned criteria. We want to assure all educational loan borrowers that Tulane's University Financial Aid Offices do not receive any form of payment or remuneration from lenders in exchange for inclusion on our lender listing. As long time members of the National Association of Student Financial Aid Administrators (NASFAA), the employees of Tulane's University Financial Aid Offices fully adhere to NASFAA's Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals.

Please know there is absolutely no obligation for borrowers to select a lender from our lender listing. Student and/or parent borrowers have the right to select a lender of their choice. Per federal and institutional guidelines, the University Financial Aid Offices will process any loan from any lender.

Finally, we wish to point out that our list of lenders is not in any order of preference.

We highly recommend that a borrower's lender choice be carefully considered as to what is best for the borrower and with the intent that one will remain with the same lender throughout one's studies at Tulane.

The Tulane University Financial Aid Offices remain committed to the students we serve. As such, we will continue to annually review our suggested lenders to ensure that our students and their families receive excellent rates and the best customer service available.

Nellie Mae (a Sallie Mae Lender) 1-888-272-5543 Guarantor: United Student Aid Funds

*Note: For students who would like to choose their own lender, they should request an application/promissory note directly from their lender. Students must send a copy of their Grad Plus Master Promissory Note to Tulane. The MPN must include the lender's name, lender code, lender's address and guarantor's name. In addition, please provide a letter indicating the dollar amount and loan period for the Grad Plus loan. Tulane will send certification to the lender either by ELM (if the lender is a participant), by fax, or by mail.

Lela 1-866-273-4138 (Edfinancial Loan Servicer) Guarantor: United Student Aid Funds

Nellie Mae (a Sallie Mae Lender) 1-888-272-5543 Guarantor: United Student Aid Funds

Receiving the Grad Plus Loan
Federal Grad Plus lenders (that belong to the ELM Resources' alliance of lenders) disburse loan funds electronically to Tulane. Federal Grad Plus loans must be disbursed in two installments. When the specified loan period is the entire academic year, the Grad Plus loan funds are disbursed in August and in January. When the specified loan period is one semester out of the academic year, the PLUS funds are also disbursed in one disbursement - three days prior to the beginning of the semester.

Other lenders (who do not participate in ELM Resources' alliance of lenders) disburse loan funds via paper check to the university. The funds are disbursed in two installments by means of co-payable check. The check is sent to the Tulane Bursar's Office. Once the Bursar's Office confirms the student's registration, the Bursar will send a request for the student to come to their office and sign the check.

Repayment of the Grad Plus Loan
Generally, repayment must begin within 60 days after the loan is fully disbursed. Grad Plus loans do not carry a grace period. Interest begins to accumulate at the time the first disbursement is made. Students do have an option of deferring both the principle and interest while the student is enrolled at least half time in school.

There are tax incentives for certain higher education expenses, including a deduction for student loan interest for certain borrowers. To learn more about the 2006 tax incentives, please click here . This brochure is for informational purposes only. Students and parents should refer to Publication 970 at www.irs.gov or a qualified tax advisor for help.

Loan Tracking Information
Students interested in verifying their student loan account balances can use one of the following online resources:

Lenders interested in being a part of Tulane's streamlined process can contact Jennifer M. McNeel, our lender liaison at jmcneel@tulane.edu Tulane reviews RFP information annually every December.