If you’re interested in applying for a Direct Grad Plus Loan, the interest rate on these loans depends on your financial situation. In this article, find out how to calculate your Direct Grad Plus Loan interest rate and what the current rates are based on your financial situation.
What is a Direct Grad Plus Loan?
Direct Grad Plus Loan is a loan made to students who want to pursue their graduate degree, but do not have a high enough credit score for traditional loans. By having this loan, you are able to borrow up to $10,500 per year with no income requirement and various repayment schedules.
A Direct Grad Plus Loan is a student loan that doesn’t need to be co-signed by a parent which makes it easier for students to borrow money. The interest rate on these loans depends on your credit rating and the amount of money borrowed.
How to calculate your Direct Grad Plus Loan interest rate
An interesting tidbit is that Direct Grad Plus Loan interest rates for 2017 ranged from 3.8% to 8.3%. So if you’re a graduate and currently looking for the best loan interest rates, you can’t go wrong with the Direct Grad Plus Loan.
The interest rate on your Direct Grad Plus Loan is calculated by taking the total amount of interest you have paid, subtracting the balance and dividing the figure by 365. For example, if you borrowed $10,000 for four years at an interest rate of 7% and your payments were $1,200 per year, your total payments would be $14,400 and your interest rate would be .0714. To calculate your total interest paid to date and what your monthly payment will be use this formula:
Current rates on a Direct Grad Plus Loan
College loan interest rates in the United States are currently at 4.45% for Direct Grad Plus Loans and 4.625% for Federal Perkins Loans. A Direct Grad Plus Loan is a student loan program that provides students with both a loan and an interest-free graduate or professional scholarship to help cover tuition and other expenses associated with higher education.
The Direct Grad Plus Loan requires you to make payments each month. Interest is charged on the outstanding balance of your loan throughout the entire term of the loan (10 years) and will accrue on any unpaid balance at a current rate of 2%.
The Direct Grad Plus Loan is a great option for grad students who are struggling to find the funds for their education. The interest rates on this loan can be very high, but this is not necessarily bad news. This loan provides a safe and reliable way for grad students to borrow money from the federal government.
While not all loan types will have the same rate, if you are looking to borrow money for a certain purpose and you have a good credit score, you may find yourself with a great interest rate on your loan. With that being said, making sure you understand the process of applying for student loans is important before deciding on the type of loan you want to take out in order to improve your chances of success.