GradPLUS vs. Private Loans -- which is better? Forum
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GradPLUS vs. Private Loans -- which is better?
Interest rates on the GradPLUS loans are higher than I would have expected and although the IBR option is nice, I wonder if private loans might not offer sufficiently lower rates to outweigh the gradPLUS benefits?
What is the consensus? What sort of interest rate on private loans should be the tipping point at which Private>GradPLus?
Any advice would be much appreciated.
What is the consensus? What sort of interest rate on private loans should be the tipping point at which Private>GradPLus?
Any advice would be much appreciated.
- thesealocust
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Re: GradPLUS vs. Private Loans -- which is better?
Private loans can be harder to qualify for, and might have a flexible rate that could hose you later if interest rates rise generally. It's at least worth investigating, but my guess is that federal direct loans will be the right choice for most.
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Re: GradPLUS vs. Private Loans -- which is better?
Where do I even start searching for private loans? (Was considering reapplying, but decided against it, so am looking at the financials a bit late). I have very good credit so I think I should be able to get some pretty decent rates.thesealocust wrote:Private loans can be harder to qualify for, and might have a flexible rate that could hose you later if interest rates rise generally. It's at least worth investigating, but my guess is that federal direct loans will be the right choice for most.
- Pink
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Re: GradPLUS vs. Private Loans -- which is better?
Except 'pretty decent' in private loan world is about 11%. The other thing to remember, is that grad plus let you defer while in school, which isn't an option with most private loans, repayment starts immediately.fingersxd wrote:Where do I even start searching for private loans? (Was considering reapplying, but decided against it, so am looking at the financials a bit late). I have very good credit so I think I should be able to get some pretty decent rates.thesealocust wrote:Private loans can be harder to qualify for, and might have a flexible rate that could hose you later if interest rates rise generally. It's at least worth investigating, but my guess is that federal direct loans will be the right choice for most.
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Re: GradPLUS vs. Private Loans -- which is better?
Avoid private loans like the plague
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- northwood
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Re: GradPLUS vs. Private Loans -- which is better?
avoid private loans. you have to repay them immediately and the interest rates are usually not as low as grad plus. Grad plus are deferred until after you leave the program.
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Re: GradPLUS vs. Private Loans -- which is better?
Private loans do not qualify for IBR.
- Tanicius
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Re: GradPLUS vs. Private Loans -- which is better?
This. IMO it's lunacy to even think about private loans because of this.Danteshek wrote:Private loans do not qualify for IBR.
- BriaTharen
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Re: GradPLUS vs. Private Loans -- which is better?
justhockey31 wrote:Avoid private loans like the plague
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Re: GradPLUS vs. Private Loans -- which is better?
Well that answers my question! Thanks to all for the input.