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Montana’s Choice Graduate PLUS Federal 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

Loans First Disbursed on or After July 1, 2006
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.