Grad PLUS or Private Loans

[TheGalvaniFrog]

I am an incoming med student trying to decide to take out either PLUS or private loans. I've seen the comparison charts of PLUS vs Private and it seems PLUS is much better hands down. Is there any reason not to go Grad PLUS?

 

[johnstoner]

I general, it is better to take the pLUS loans. If you have good credit, you can get a pretty good private loan that is competitive to the PLUS loans but it is still a variable interest rate loan. You also have the protection of loan forgiveness with PLUS if you get permanently disabled or croak.

 

[Doctor Bagel]

I don't think anybody opts to go for private loans anymore. Last year some schools weren't up to date with the GradPlus stuff, some lots of students did private just because of that. This year, I think they're all on board for quick GradPlus processing, so that's no longer an issue.

It's possible you could get a lower interest rate with a private loan if your credit is really good, but that whole variable interest thing doesn't make it worth it for me.

 

[okbye]

Private loans also don't have the federal benefits like deferral and forbearance or the possibility of forgiveness.

 

[Lesley]

Is there any reason not to go Grad PLUS?

No.

 

[mshheaddoc]

Private loans also don't have the federal benefits like deferral and forbearance or the possibility of forgiveness.

Actually that's not true private loans can be deferred/forbearance. My husband has all his private loans in deferment.

As for grad plus, it was my understanding that you can only borrow up to your school's financial budget? "The PLUS loan is limited to cost of attendance minus aid received, as certified by the school." PLUS loans are great to fill a gap if your financial aid doesn't reach your full financial needs. People that take out private loans for above and beyond what is needed for financial aid will still depend on private loans.