A Stafford loan is not always enough

While the best federal loan option available to most graduate students is a Stafford loan, there are some students who need more money than what a Stafford loan permits. This is why they apply for a Sallie Mea PLUS loan instead.

Good credit required for Sallie Mea loans

A Sallie Mea PLUS loan, however, is not as easy to qualify for as a Stafford loan. A Sallie Mea PLUS loan is different from a Stafford loan in that it requires a credit check. This eligibility factor often excludes many graduate students for two reasons: they either have no credit history to be checked, or their credit history is a complete mess of missed payments and collection agencies.

Qualifying for a loan with bad credit

However, take heart if you fall under either of these two categories. If you can find someone who has a credit history that is in good standing, and who is willing to co-sign for the loan, you can still get it. If this is not an option, then Sallie Mea offers the Sallie Mea PLUS Success service which will work with you to get your credit in good standing so that you can become eligible for the loan.

Benefits of a Sallie Mea loan

Once you are approved for a Sallie Mea PLUS loan you will enjoy the same benefits as you would if you applied for a Stafford loan. As long as you attend school at least part time you don't have to worry about paying back the loan. There is no prepayment penalty though if you want to start paying the loan back while you're in school. However, the most attractive reason for why graduate students apply for Sallie Mea PLUS Loans is that they can borrow up to the full cost of their education. And a little extra added perk is that applying is easy and the approval process is instant.

Interest rate and repayment terms

The interest rate on a Sallie Mea PLUS loan is fixed at 8.5%, which for some students can be high, especially right out of school, but the upside is that the loan offers flexible repayment terms. You have the option of paying back the loan in monthly payments that span a 10 year period or lengthening the repayment term to as long as 25 years to keep you monthly payments small. These are just two of the popular options but there are others to suit the needs of all students.

If you don't want the hassle of taking out multiple loans to finance graduate school then a Sallie Mea PLUS loan may be exactly what you need to reach your educational goals. In the end, what you decide will depend on your own financial situation, but this might be the option that makes all of your educational goals come true.