Montana's Choice Graduate PLUS Loans
TERMS AND CONDITIONS:
Direct Payment (ACH)
If ACH is rejected by the borrower's bank more than once within the life of the loan, the interest rate reduction is discontinued. The borrower may continue to use ACH, however.
On Time
On time is defined as no more than 30 days delinquent.
Late Fees
If a payment is delinquent, a late fee of 5% of the payment amount will be charged on loans disbursed on or after July 1, 2008
Eligibility
You must be a U.S. citizen or permanent resident and be a graduate/professional student who is enrolled full or half time in an accredited school. You must have already earned a bachelor's degree. You also must have accepted all Stafford loans available to you. A credit check is required.
Loan Limits
Up to the total cost of education, less any other aid received.
Interest Rate
During in-school or deferment period: Fixed 8.5%
During repayment period: Fixed 8.5%
Fees
Origination fee: 3%
Default fee: 1%
Repayment Terms
Loan(s) may be repaid over a maximum of 10 years. Repayment begins 30-45 days after the loan is fully disbursed.
FFEL Loan Interest Rates Effective July 1, 2008
| Loan Type | Grade Level | FFEL | |
|---|---|---|---|
| 7/1/2006 to 7/1/2008 | 7/1/2008 to 7/1/2009 | ||
| Subsidized Loans | Undergraduate | 6.80 | 6.00 |
| Graduate | 6.80 | 6.80 | |
| Unsubsidized Loans | Undergraduate | 6.80 | 6.80 |
| Graduate | 6.80 | 6.80 | |
| PLUS Loans | All | 8.50 | 8.50 |
Variable Rates for Loans First Disbursed Between July
1, 1998 and June 30, 2006
These rates were calculated based upon statutory formulas
and equal the bond equivalent rate of the 91-day Treasury bills
auctioned on May 27, 2008, plus certain statutory percentage
add-ons. The 91-day Treasury bills were auctioned at 1.905 percent,
rounded to 1.91 percent.
| Loan Type | Status | FFEL | |
|---|---|---|---|
| 7/1/2006 to 7/1/2008 | 7/1/2008 to 7/1/2009 | ||
| Subsidized Loans | Repayment or Forbearance | 7.22 | 4.21 |
| In-school, Grace, or Deferment | 6.62 | 3.61 | |
| Unsubsidized Loans | Repayment or Forbearance | 7.22 | 4.21 |
| In-school, Grace, or Deferment | 6.62 | 3.61 | |
| PLUS Loans | All | 8.02 | 5.01 |
New loan programs listed above are subject to change without notice, based on regulatory changes to the Federal Higher Education Act and/or upon financial market volatility impacting the earnings of lenders in the Montana's Choice program.
Benefits granted on loans already disbursed are paid out of excess funds from financed bonds and are subject to change or elimination at any time based upon the availability of such funds. Benefits are payable as long as the loans are owned by MHESAC or a participating Montana's Choice lender.