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GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 7:06 pm
by fingersxd
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.
Re: GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 7:21 pm
by thesealocust
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.
Re: GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 7:24 pm
by fingersxd
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.
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.
Re: GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 7:25 pm
by Pink
fingersxd wrote: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.
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.
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.
Re: GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 8:26 pm
by justhockey31
Avoid private loans like the plague
Re: GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 9:34 pm
by northwood
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.
Re: GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 9:39 pm
by Danteshek
Private loans do not qualify for IBR.
Re: GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 9:41 pm
by Tanicius
Danteshek wrote:Private loans do not qualify for IBR.
This. IMO it's lunacy to even think about private loans because of this.
Re: GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 9:45 pm
by BriaTharen
justhockey31 wrote:Avoid private loans like the plague
Re: GradPLUS vs. Private Loans -- which is better?
Posted: Sun Jul 03, 2011 10:00 pm
by fingersxd
Well that answers my question! Thanks to all for the input.