MS0 looking for loan advice

[LaCroix09]

Hey folks, I start MS1 in August and I could use some help deciding how to pay for school.

I'm in state, so my fed unsubsidized loan will cover most of my expenses, but I'm going to be taking out another loan for the remaining ~$10,000 for living expenses. I have two options: I have applied for and qualified for the GRAD PLUS loan and the Discover Health Professions Student loan. The Discover loan has a better interest rate, but it seems like most people just go with the GRAD PLUS?

The stats:

Federal GRAD PLUS: $10,570 at 7.9% APR. 25 year repayment plan with 6 months grace period

Discover Health Care Professions Student Loan: $10,570 at 6.48% APR FIXED RATE. 20 year repayment plan with 9 months grace period

I've never taken out a loan before. Undergrad was covered by scholarships. To me, it seems like the Discover loan is the better option, but it doesn't seem like many people use private loans? This may be more simple than I'm making it, but it's a lot of money, so I could use some advice.

Thanks.

---

Members don't see this ad.

 

[TheWeeIceMan]

I'm also an MS0, but I would just stick with Grad Plus even with the slightly higher interest rate. Having all of your loans eligible for IBR, PAYE, whatever else the gov rolls out, is more important, in my opinion. Also, I'm not sure if Discover allows forbearance during residency like Grad Plus, which might be a factor. I'll defer to more experienced loan takers if I'm wrong though.

 

[Ost3oclast]

So how exactly do we even apply for the grad plus? At one of the schools I was accepted to I just had to complete a MPN for the grad plus stuff and it was automatic

 

[Member 331305]

So how exactly do we even apply for the grad plus? At one of the schools I was accepted to I just had to complete a MPN for the grad plus stuff and it was automatic

For my school, we had to complete the GradPLUS MPN and complete the "Request a Direct PLUS Loan" action from the student loans website. This request also performs the credit check that's required to qualify for the GradPLUS loan.

 

[LaCroix09]

For my school, we had to complete the GradPLUS MPN and complete the "Request a Direct PLUS Loan" action from the student loans website. This request also performs the credit check that's required to qualify for the GradPLUS loan.

bingo

 

[Ost3oclast]

For my school, we had to complete the GradPLUS MPN and complete the "Request a Direct PLUS Loan" action from the student loans website. This request also performs the credit check that's required to qualify for the GradPLUS loan.

Thanks!

 

[pp77]

I'm also an MS0, but I would just stick with Grad Plus even with the slightly higher interest rate. Having all of your loans eligible for IBR, PAYE, whatever else the gov rolls out, is more important, in my opinion. Also, I'm not sure if Discover allows forbearance during residency like Grad Plus, which might be a factor. I'll defer to more experienced loan takers if I'm wrong though.

I think you're 100% right. OP should read up on PAYE, PSLF etc.