Direct PLUS vs Grad PLUS vs Private Loan

[phungy]

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I need some advice on which to go with.

Direct PLUS has:
- fixed 7.9% interest rate
- 10-25 yr repayment
- 0.25% reduction with automatic electronic debit option
- 6 month grace period
- capitalization (unpaid interest will be added to unpaid principal)
- not sure about origination and default fees

Grad PLUS has:
- fixed 8.5% interest rate
- 3% origination fee
- 1% default fee
- 6 month grace period
- 10 year repayment
- 0.25% auto debit reward
- does not capitalize according to discover rep

Private Loan through Discover:
- 8.5% (3.25+5.25 for me)
- zero origination fee
- 9 month grace period
- 20 year repayment
- 2% graduation reward
- 0.25% auto debit reward
- does not capitalize according to discover rep

I went with private loan last year since it was only 6.25% then but now that its gone up I'm leaning towards Grad PLUS and Direct PLUS. Any advice on which option would be the best?

 

[december07]

Are you considering IBR or loan forgiveness programs after graduation? If so, I would steer away from private loans since you cannot consolidate it nor can it be forgiven.

I need some advice on which to go with.

Direct PLUS has:
- fixed 7.9% interest rate
- 10-25 yr repayment
- 0.25% reduction with automatic electronic debit option
- 6 month grace period
- capitalization (unpaid interest will be added to unpaid principal)
- not sure about origination and default fees

Grad PLUS has:
- fixed 8.5% interest rate
- 3% origination fee
- 1% default fee
- 6 month grace period
- 10 year repayment
- 0.25% auto debit reward
- does not capitalize according to discover rep

Private Loan through Discover:
- 8.5% (3.25+5.25 for me)
- zero origination fee
- 9 month grace period
- 20 year repayment
- 2% graduation reward
- 0.25% auto debit reward
- does not capitalize according to discover rep

I went with private loan last year since it was only 6.25% then but now that its gone up I'm leaning towards Grad PLUS and Direct PLUS. Any advice on which option would be the best?

 

[phungy]

I am considering IBR actually. I've narrowed my choices down to Grad Plus and Direct Plus but will most likely go with Direct.