Loans: Federal vs Private

[studenttt999]

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Ill be a first year dental student and I'm currently still figuring out my loan situation... I will be attending a private school that runs around ~$90,000 a year... Because of this, if I go the FEDERAL route, Ill get the unsubsidized stafford loan and direct plus loan to cover it with interest rates of 6.8 and 7.9 respectively...

Ive also gotten some stuff in the mail, Discover offers fixed rates as low as 5.49% APR and I was wondering if I should go this route. I was just hoping people could provide some insight as to what decision I should lean towards. I understand that private loans usually require a co-signer, but this interest rate seems extremely competitive given the large amount I'll be taking out. They state that they can cover 100% of the amount, so I would only need 1 loan.

All feedback is appreciated. Thanks.

 

[Mr. Thirsty]

Ill be a first year dental student and I'm currently still figuring out my loan situation... I will be attending a private school that runs around ~$90,000 a year... Because of this, if I go the FEDERAL route, Ill get the unsubsidized stafford loan and direct plus loan to cover it with interest rates of 6.8 and 7.9 respectively...

Ive also gotten some stuff in the mail, Discover offers fixed rates as low as 5.49% APR and I was wondering if I should go this route. I was just hoping people could provide some insight as to what decision I should lean towards. I understand that private loans usually require a co-signer, but this interest rate seems extremely competitive given the large amount I'll be taking out. They state that they can cover 100% of the amount, so I would only need 1 loan.

All feedback is appreciated. Thanks.

Honestly the grad plus loans are the best option. Private loans may have lower rates but the rates are usually variable. Even if the private ones are fixed they do not have as many benefits as a government loan has. You are attending a very expensive school, which means you may choose to rely on the IBR or public service plan down the line, in which you can have your loans forgiven in 10 years. However this ONLY applies to government loans. Although this IBR plan may not be around forever, I think it is still worth sticking to government controlled loans just in case.
Also only government loans can be consolidated together to make one monthly payment. Many private loans cannot be consolidated and the ones that can cannot be consolidated with the federal loans, so it becomes two separate monthly payments that you would have to worry about.
Take out as much government aid as you can before turning to private loans.

 

[shootingstar7]

From what I've observed, most private loans limit payment plans to 10 years. You should google amortization calculators and plug in your numbers. You might be looking at $5000/month payments.

 

[DentVols17]

Most students end up refinance their federal loans through a private lender once they get out of school. The rate now is around 3.25 but who knows once you get of school what it will be...still very likely that it will be below the criminal 6.8%.