Are GradPLUS and Direct Loans different?

[gumbyj]

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Sorry if this is a stupid question - but are GradPLUS loans considered Direct Loans (and thus IBR would be a possible repayment plan? and PSLF would be available)?

 

[DrMidlife]

GradPlus are considered direct federal loans, and are eligible for everything but ICR and ISR.

More on the loans eligible for different repayment plans:
http://studentaid.ed.gov/repay-loans/understand/plans

More on PSLF:
http://studentaid.ed.gov/repay-loans/forgiveness-cancellation/charts/public-service

 

[iGrad FinLit]

There are no stupid questions when it comes to student loans - the programs and rules were not set up to be very intuitive or user-friendly. "Direct Loans" really just indicate federal loans, and are named so because in the past they were all serviced by an agency called Direct Loans. Now, they can be Stafford Loans, Grad PLUS Loans, or Parent Plus Loans. Stafford Loans have relatively small maximum annual amounts, and therefore often need to by supplemented by Grad PLUS Loans. The interest rates are a little bit higher, but other than that most of the terms, benefits and repayment plans are identical. They can also be included in a federal loan consolidation with all other federal loans when you are done if you choose to combine them. They are good loans - all things considered they are much better than any private loan alternatives.

I hope that helps!

iGrad | Financial Literacy