Unsubsidized Stafford vs GRAD PLUS?

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scaredstiff165

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Unsubsidized Stafford vs GRAD PLUS?

Post by scaredstiff165 » Wed Apr 29, 2009 12:43 pm

Which one is better to take out? If I have a choice, which one should I use?

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misteranthro

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Re: Unsubsidized Stafford vs GRAD PLUS?

Post by misteranthro » Wed Apr 29, 2009 12:47 pm

Unsubsidized Stafford for sure.

Gradplus = 7.5% w/ possibly a .5% knock-off for auto-withdrawal.

Unsubsidized Stafford = 6.5% today, but the schedule for the next several years shows that the rates will significantly drop each year.

aer

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Re: Unsubsidized Stafford vs GRAD PLUS?

Post by aer » Wed Apr 29, 2009 12:47 pm

Unsubsidized Stafford has a lower interest rate than GRAD PLUS. So go with Stafford first.

mycousinvinny

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Re: Unsubsidized Stafford vs GRAD PLUS?

Post by mycousinvinny » Wed Apr 29, 2009 2:47 pm

Are you given the choice. I thought that you can only get gradplus after you exhaust stafford limits for the year.

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pany1985

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Re: Unsubsidized Stafford vs GRAD PLUS?

Post by pany1985 » Wed Apr 29, 2009 2:51 pm

misteranthro wrote:Unsubsidized Stafford for sure.

Gradplus = 7.5% w/ possibly a .5% knock-off for auto-withdrawal.

Unsubsidized Stafford = 6.5% today, but the schedule for the next several years shows that the rates will significantly drop each year.
I'm pretty sure that for graduate students the interest rate is 6.8% and will not change


Still definitely a better choice than GradPlus though

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mardimar

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Re: Unsubsidized Stafford vs GRAD PLUS?

Post by mardimar » Wed Apr 29, 2009 2:54 pm

You are given the choice, but generally folks use GradPlus to pick up the slack after the initial $20,500 of Stafford Loans due to their lower interest rate.

mardimar

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Re: Unsubsidized Stafford vs GRAD PLUS?

Post by mardimar » Wed Apr 29, 2009 2:55 pm

When does repayment begin for GradPlus? Is there a 6 month grace period after graduation like Stafford Loans?

Outlawed

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Re: Unsubsidized Stafford vs GRAD PLUS?

Post by Outlawed » Thu Apr 30, 2009 6:34 pm

Uhh, I was under the impression that 8.5% is the fixed rate for Grad Plus for most lenders, with a few exceptions that have rates at 8.25%. .50 auto withdrawal is for only a few lenders, most are .25%.

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misteranthro

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Re: Unsubsidized Stafford vs GRAD PLUS?

Post by misteranthro » Thu Apr 30, 2009 6:37 pm

pany1985 wrote:
misteranthro wrote:Unsubsidized Stafford for sure.

Gradplus = 7.5% w/ possibly a .5% knock-off for auto-withdrawal.

Unsubsidized Stafford = 6.5% today, but the schedule for the next several years shows that the rates will significantly drop each year.
I'm pretty sure that for graduate students the interest rate is 6.8% and will not change


Still definitely a better choice than GradPlus though
I stand corrected. It was 8.5% instead of 7.5% and the Stafford rate reductions I was talking about only apply to undergraduate students. It is fixed at 6.8% for both subsidized and unsubsidized. This actually sucks. I was counting on at least seeing my subsidized interest rates go down.

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