Unsubsidized Stafford vs GRAD PLUS?

[scaredstiff165]

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

[misteranthro]

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]

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

[mycousinvinny]

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

[pany1985]

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

[mardimar]

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]

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

[Outlawed]

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%.

[misteranthro]

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.