Loan Options

This forum made possible through the generous support of SDN members, donors, and sponsors. Thank you.

jexna1

Full Member
7+ Year Member
Joined
May 1, 2014
Messages
12
Reaction score
3
I was wondering if someone could tell me which loan I should sign up for between the federal unsubsidized loan and the graduate plus loan. If you could let me know the advantages or drawbacks of these two, that would be great! I'm a first year student and I'm trying to get into the swing of things, fun stuff!:)

Members don't see this ad.
 
  • Like
Reactions: 1 user
I assume you're about to be a first year, not currently a first year, right?

If possible, stay away from the plus loans. They have a higher interest rate and have a loan fee 4x that of the regular unsub loans. In other words, borrow what you need first from the unsub loans...if you find you need to go to grad plus loans try to redo your budget. If you still need do, then take them from grad plus.

Current rates:
https://studentaid.ed.gov/types/loans/subsidized-unsubsidized#interest-rates
https://studentaid.ed.gov/types/loans/plus#what-is-the-current

Fed Unsub: 6.21% Grad Plus 7.21%.
 
  • Like
Reactions: 1 user
I was wondering if someone could tell me which loan I should sign up for between the federal unsubsidized loan and the graduate plus loan. If you could let me know the advantages or drawbacks of these two, that would be great! I'm a first year student and I'm trying to get into the swing of things, fun stuff!:)
You'll have to take out both unless:

1- you have loaded family members who are hooking you up.

2- you have managed to save up a crap crap crap ton of cash.

3- you go to Lecom and can live off of 12-13K a year.

If you don't fall into 1-3 then you get to join the mass hoards of people enjoying that grad plus baby.

*edited for spelling*
 
Last edited:
  • Like
Reactions: 6 users
Members don't see this ad :)
I assume you're about to be a first year, not currently a first year, right?

If possible, stay away from the plus loans. They have a higher interest rate and have a loan fee 4x that of the regular unsub loans. In other words, borrow what you need first from the unsub loans...if you find you need to go to grad plus loans try to redo your budget. If you still need do, then take them from grad plus.

Current rates:
https://studentaid.ed.gov/types/loans/subsidized-unsubsidized#interest-rates
https://studentaid.ed.gov/types/loans/plus#what-is-the-current

Fed Unsub: 6.21% Grad Plus 7.21%.

How does somebody stay away from the plus loans? My school's tuition costs more than the federal subsidized loan. I have no choice but to take out a grad plus loan in order to even finish paying the rest of my tuition
 
  • Like
Reactions: 1 user
Light 6 candles. Draw a pentagram on the floor in chalk. When the devil arrives, give him your social security number, a piece of your hair and a drop of blood. You will black out. When you wake up, tuition will be paid, and it will actually be cheaper than taking out government loans.
 
  • Like
Reactions: 8 users
Then you can't. My point was take the plus loans last so you have the least amount of loans with the higher interest rates.
 
  • Like
Reactions: 1 users
How does somebody stay away from the plus loans? My school's tuition costs more than the federal subsidized loan. I have no choice but to take out a grad plus loan in order to even finish paying the rest of my tuition

Its possible if you go to a less expensive school. LECOM tuition and extra fees (insurance, etc.) for example still come out to ~$5k less than the Stafford $40.5k limit. For any additional living expenses after that extra $5k, you can take out GradPLUS for the extra $5-$10k, depending how you live.
 
I would pay the extra 20k per year to not have a dress code and mandatory attendance.
 
I would pay the extra 20k per year to not have a dress code and mandatory attendance.

Which is why you did it. I wouldn't, but I'm loan averse, and look forward to having <$150k of debt (had some savings). That's why each person has to make the choice for themselves. For me 2 years (which I'm thankful will be over soon) of dress code and (limited - PBL) mandatory attendance was worth the $80k+compound interest I could save (among other reasons).
 
Last edited:
  • Like
Reactions: 1 users
Its possible if you go to a less expensive school. LECOM tuition and extra fees (insurance, etc.) for example still come out to ~$5k less than the Stafford $40.5k limit. For any additional living expenses after that extra $5k, you can take out GradPLUS for the extra $5-$10k, depending how you live.

Yeah PCOM is pretty expensive, living in Philly doesn't help either. 35k for Med school is actually not a bad deal.
 
I was wondering if someone could tell me which loan I should sign up for between the federal unsubsidized loan and the graduate plus loan. If you could let me know the advantages or drawbacks of these two, that would be great! I'm a first year student and I'm trying to get into the swing of things, fun stuff!:)

I would hope that you are attending a school that is in the boonies (where the cost of living is low) so you can take out the smallest amount of Grad Plus possible. Luckily for me I happen to go to one of the schools. Unlucky for me I didn't pay off all my debt before med school, thus my cost of living is inflated. So I took every dollar they would give me. Yay for transferring debt!
 
Yeah PCOM is pretty expensive, living in Philly doesn't help either. 35k for Med school is actually not a bad deal.

Philly is amazing. It's no NYC, Chi, SF, or LA..but still pretty amazing.
 
Top