Colleges determine eligibility for the Federal Direct Unsubsidized Loan before determining any remaining eligibility for a Federal Direct Graduate PLUS Loan. Therefore, students should wait until their Federal Direct Unsubsidized Loan program eligibility has been determined before applying for the Federal Direct Grad PLUS Loan.
Before obtaining an alternative loan, graduate students should compare the terms of the loan with loan assistance available through the Federal Direct Unsubsidized Loan Program. Most private loan programs are not competitive with the Federal Direct Loan Program and are intended to provide supplemental educational financing.
Student Loan Debt Relief
The Biden-Harris administration announced the Student Debt Relief Plan on August 24, 2022. This planincludes the cancellation of up to $10,000 in student loan debt for borrowers making less than $125,000 annually or families making less than $250,000 annually. Additionally, borrowers who received Pell grants in college will receive up to $20,000 in loan forgiveness.
The relief includes current students and borrowers who have federally held undergraduate, graduate, and Parent PLUS loans that have been fully disbursed by June 30, 2022.
Students can check their federal loan history and Pell Grant recipient status by logging into their federal student aid account on studentaid.gov.
There will be more details announced in the coming weeks. To be notified when the process has officially opened, sign up at the Department of Education subscription page.