Loan Interest Rates

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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holybartender
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Loan Interest Rates

Postby holybartender » Fri Apr 02, 2010 3:36 pm

Sorry if this has been answered before, but preliminary research on the internet seems mixed. What are the interest rates on stafford loans and grad plus loans? Thanks.

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rx3r
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Re: Loan Interest Rates

Postby rx3r » Fri Apr 02, 2010 3:41 pm


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kittenmittons
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Re: Loan Interest Rates

Postby kittenmittons » Fri Apr 02, 2010 3:42 pm

Loan (cap): rate

Subsidized Stafford ($8500): 5.6%
Unsubsidized Stafford: ($12999): 6.8%
GradPLUS (Up to CoA - Financial Aid): 8.5%

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holybartender
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Re: Loan Interest Rates

Postby holybartender » Fri Apr 02, 2010 3:43 pm

Appreciate it.

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oberlin08
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Re: Loan Interest Rates

Postby oberlin08 » Fri Apr 02, 2010 3:46 pm

Are there any advantages to not doing GradPlus loans and going with private loans instead?

I dont see any, but maybe I missed something?

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j.wellington
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Re: Loan Interest Rates

Postby j.wellington » Fri Apr 02, 2010 3:59 pm

oberlin08 wrote:Are there any advantages to not doing GradPlus loans and going with private loans instead?

I dont see any, but maybe I missed something?


Not really. You're only going to be exposing yourself to a less-regulated market with more leeway to raise interest rates and less incentive to offer deferments if you end up needing it. GradPlus doesn't have great interest rates, but it's subject to the same safeguards and reformed repayment plans as the Stafford. I would guess that very few people rely on private loans for grad school.

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lallygag
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Re: Loan Interest Rates

Postby lallygag » Fri Apr 02, 2010 4:08 pm

oberlin08 wrote:Are there any advantages to not doing GradPlus loans and going with private loans instead?

I dont see any, but maybe I missed something?


I didn't see any either, until I read this poster's analysis of private vs. GradPlus loans. Pretty interesting - viewtopic.php?f=15&t=111904

I guess some private loans have enticing interest rates but overall GradPlus offers stability and peace of mind by having that fixed rate. [this is where Obama's student loan reform steps in and saves the day]

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baboon309
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Re: Loan Interest Rates

Postby baboon309 » Fri Apr 02, 2010 11:14 pm

kittenmittons wrote:Loan (cap): rate

Subsidized Stafford ($8500): 5.6% <-----------Wrong
Unsubsidized Stafford: ($12999)<------------ Wrong: 6.8%
GradPLUS (Up to CoA - Financial Aid): 8.5% <---------Wrong



You are horrible

For grad student, both Subsidized and unsubsidized stafford loans are 6.8 %
7.9% for direct grad plus. I just did entrance counseling.

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BigTabacco
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Re: Loan Interest Rates

Postby BigTabacco » Sun Apr 04, 2010 1:23 am

oberlin08 wrote:Are there any advantages to not doing GradPlus loans and going with private loans instead?

I dont see any, but maybe I missed something?


Many private educational loans are variable interest, which would be a mistake these days.

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annapavlova
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Re: Loan Interest Rates

Postby annapavlova » Sun Apr 04, 2010 3:03 pm

baboon309 wrote:
kittenmittons wrote:Loan (cap): rate

Subsidized Stafford ($8500): 5.6% <-----------Wrong
Unsubsidized Stafford: ($12999)<------------ Wrong: 6.8%
GradPLUS (Up to CoA - Financial Aid): 8.5% <---------Wrong



You are horrible

For grad student, both Subsidized and unsubsidized stafford loans are 6.8 %
7.9% for direct grad plus. I just did entrance counseling.


You are both wrong (though baboon has a better reason for being wrong.)

GradPlus can be up to 8.5% if your school does not do Direct Loan servicing (baboon probably doesn't know this because he/she is probably going to a DLS school). This means you have to go straight to a bank to get the loan and the interest rate is higher. That is why Discover is a good choice - their GradPlus interest rate is at 8.25% and you will also get a reduction when you graduate and sign up for automatic debit.

Subsidized Stafford loans are only 5.6% for UNDERGRADS. Graduate students are still at 6.8% - Obama actually just declined to reduce the graduate Stafford interest rate.

You can only take up to $12500 in Unsub.

Yes, GradPlus can be up to 8.5% (Wells Fargo, Chase, Bank of America, etc.)

Teaching Moment: make sure you check with your financial aid office and lender before assuming that the advice you got on the internet was actually correct.

Anonymous Loser
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Re: Loan Interest Rates

Postby Anonymous Loser » Sun Apr 04, 2010 4:09 pm

annapavlova wrote:
baboon309 wrote:
kittenmittons wrote:Loan (cap): rate

Subsidized Stafford ($8500): 5.6% <-----------Wrong
Unsubsidized Stafford: ($12999)<------------ Wrong: 6.8%
GradPLUS (Up to CoA - Financial Aid): 8.5% <---------Wrong



You are horrible

For grad student, both Subsidized and unsubsidized stafford loans are 6.8 %
7.9% for direct grad plus. I just did entrance counseling.


You are both wrong (though baboon has a better reason for being wrong.)

GradPlus can be up to 8.5% if your school does not do Direct Loan servicing (baboon probably doesn't know this because he/she is probably going to a DLS school). This means you have to go straight to a bank to get the loan and the interest rate is higher. That is why Discover is a good choice - their GradPlus interest rate is at 8.25% and you will also get a reduction when you graduate and sign up for automatic debit.

Subsidized Stafford loans are only 5.6% for UNDERGRADS. Graduate students are still at 6.8% - Obama actually just declined to reduce the graduate Stafford interest rate.

You can only take up to $12500 in Unsub.

Yes, GradPlus can be up to 8.5% (Wells Fargo, Chase, Bank of America, etc.)

Teaching Moment: make sure you check with your financial aid office and lender before assuming that the advice you got on the internet was actually correct.



Teaching Moment: when correcting other posters, make absolutely certain you haven't made an even more egregious error, like overlooking the past week's widely publicized elimination of the FFELP loan program. The interest rate on all GradPLUS loans disbursed after this coming July 1st will be 7.9%, and such loans will only be available through the Direct Lending program.

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Sunflower
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Re: Loan Interest Rates

Postby Sunflower » Sun Apr 04, 2010 4:20 pm

I was wondering if a school asked you to fill out a credit check form for a GradPlus loan do you still need to do it? The reason I am asking is because I heard every one will be approved for GradPlus loans by their schools due to Obama's new bill. I am going to ask the school as well on Monday about this.

wreckem
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Re: Loan Interest Rates

Postby wreckem » Sun Apr 04, 2010 4:33 pm

Sunflower wrote:I was wondering if a school asked you to fill out a credit check form for a GradPlus loan do you still need to do it? The reason I am asking is because I heard every one will be approved for GradPlus loans by their schools due to Obama's new bill. I am going to ask the school as well on Monday about this.


I believe they will still be doing basic credit checks. I don't think everyone will be approved, but more will be than if they didn't go all direct. Direct Grad loans had a rejection rate in the 20% range. Third party grad plus loans had rejection rates in the 40% range.

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Sunflower
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Re: Loan Interest Rates

Postby Sunflower » Sun Apr 04, 2010 5:22 pm

wreckem wrote:
Sunflower wrote:I was wondering if a school asked you to fill out a credit check form for a GradPlus loan do you still need to do it? The reason I am asking is because I heard every one will be approved for GradPlus loans by their schools due to Obama's new bill. I am going to ask the school as well on Monday about this.


I believe they will still be doing basic credit checks. I don't think everyone will be approved, but more will be than if they didn't go all direct. Direct Grad loans had a rejection rate in the 20% range. Third party grad plus loans had rejection rates in the 40% range.


Thanks for the info.

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annapavlova
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Joined: Thu Mar 05, 2009 9:53 am

Re: Loan Interest Rates

Postby annapavlova » Sat Apr 10, 2010 8:19 pm

Anonymous Loser wrote:
annapavlova wrote:
baboon309 wrote:
kittenmittons wrote:Loan (cap): rate

Subsidized Stafford ($8500): 5.6% <-----------Wrong
Unsubsidized Stafford: ($12999)<------------ Wrong: 6.8%
GradPLUS (Up to CoA - Financial Aid): 8.5% <---------Wrong



You are horrible

For grad student, both Subsidized and unsubsidized stafford loans are 6.8 %
7.9% for direct grad plus. I just did entrance counseling.


You are both wrong (though baboon has a better reason for being wrong.)

GradPlus can be up to 8.5% if your school does not do Direct Loan servicing (baboon probably doesn't know this because he/she is probably going to a DLS school). This means you have to go straight to a bank to get the loan and the interest rate is higher. That is why Discover is a good choice - their GradPlus interest rate is at 8.25% and you will also get a reduction when you graduate and sign up for automatic debit.

Subsidized Stafford loans are only 5.6% for UNDERGRADS. Graduate students are still at 6.8% - Obama actually just declined to reduce the graduate Stafford interest rate.

You can only take up to $12500 in Unsub.

Yes, GradPlus can be up to 8.5% (Wells Fargo, Chase, Bank of America, etc.)

Teaching Moment: make sure you check with your financial aid office and lender before assuming that the advice you got on the internet was actually correct.



Teaching Moment: when correcting other posters, make absolutely certain you haven't made an even more egregious error, like overlooking the past week's widely publicized elimination of the FFELP loan program. The interest rate on all GradPLUS loans disbursed after this coming July 1st will be 7.9%, and such loans will only be available through the Direct Lending program.


Well that's good news, actually! Hurray!

Teaching Moment to Self: Find time to read newspapers and watch television while I complete my appellate brief, fulfill researching duties for professor who is writing a book (and paying me), run a mock trial program, and study for finals while trying to maintain my class rank.

Glad to hear I can look forward to .6% less interest (really).
Last edited by annapavlova on Sun Apr 11, 2010 10:16 pm, edited 1 time in total.

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General Tso
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Re: Loan Interest Rates

Postby General Tso » Sat Apr 10, 2010 8:45 pm

When are they going to increase the Stafford amounts? They have been unchanged since around 1999-2000 right? Tuition at my school has increased by nearly 4x in that period and the Staffords have been the same.




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