Grad PLUS Calculator
Enter your student loan details to calculate payments and total cost.
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About Grad PLUS Loan Calculator
Calculate graduate student Grad PLUS loan payments and compare to private student loans.
Understanding Grad PLUS
Key factors in managing student loans:
- Federal loans offer protections like income-driven repayment and forgiveness programs
- Interest rates and repayment terms significantly impact total cost
- Making extra payments reduces interest and shortens payoff time
- Refinancing may lower rates but eliminates federal protections
Repayment Strategies
- Standard 10-year plan minimizes total interest paid
- Income-driven plans base payments on earnings (IBR, PAYE, REPAYE)
- Refinancing makes sense if you have good credit and don't need federal benefits
- Consider loan forgiveness programs if working in public service or teaching
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Frequently Asked Questions
How is a Grad PLUS loan payment calculated?
Monthly payment on a Grad PLUS loan uses standard amortization: M = P × r × (1+r)^n / ((1+r)^n − 1), where r is the fixed federal rate divided by 12 and n is the repayment term in months. For a $50,000 balance at 8.94% (AY2025–26 rate per Dept of Ed May 2025 announcement) over 10 years, the payment is about $632. Standard repayment is 10 years; extended and income-driven plans stretch the term to 20–25 years at lower monthly payments but higher total interest.
What is the Grad PLUS interest rate for 2025–26?
Under the Bipartisan Student Loan Certainty Act of 2013, the Grad PLUS rate is set each May as the 10-year Treasury note high yield plus 4.60%, capped at 10.50%. For loans first disbursed July 1, 2025 through June 30, 2026, the rate is 8.94% per the Department of Education May 2025 announcement (May 2025 10-yr T-Note high yield 4.34% + 4.60% = 8.94%). The prior cycle (AY 2024-25) was 9.08%. Rates are fixed for the life of the loan; refinancing into a private loan is the only way to lower the rate, but that forfeits federal protections.
Is there an origination fee on Grad PLUS loans?
Yes. Per HEA § 455(c), Grad PLUS loans carry an origination fee that is deducted from each disbursement. For loans first disbursed on or after October 1, 2020, the fee is 4.228% of the principal. On a $35,000 loan, the fee is about $1,480 — the borrower receives $33,520 net but owes $35,000 plus interest. This calculator does not subtract the origination fee from the financed amount; the effective cost to the borrower is slightly higher than the displayed total.
What is the difference between Grad PLUS and Direct Unsubsidized loans?
Direct Unsubsidized loans for graduate students are capped at $20,500 per year with a $138,500 aggregate limit (including undergraduate borrowing). The AY2025–26 Grad Unsubsidized rate is 7.94% per Dept of Ed May 2025 announcement. Grad PLUS has no annual or aggregate dollar limit — you can borrow up to the cost of attendance minus other aid — but the rate is higher (8.94% AY2025-26) and credit-history-based denial is possible. Most graduate students max Unsubsidized first, then add Grad PLUS as needed.
Can Grad PLUS loans be forgiven?
Yes, under Public Service Loan Forgiveness (PSLF) and Income-Driven Repayment forgiveness. PSLF discharges the remaining balance tax-free after 120 qualifying monthly payments while working full-time for a qualifying public-sector or 501(c)(3) employer. IDR plans (IBR, PAYE, SAVE — currently in litigation) forgive remaining balances after 20 or 25 years; the forgiven amount may be taxable as ordinary income under IRC § 108, though tax-free treatment is in effect through 2025. Borrowers should consolidate or recertify carefully to preserve eligibility.