I am really confused on this point, I deleted my post just as second before you replied. I'm sure you are right because I never understood the distinction
I looked online and grad plus loans are run the the US Department of Education, and when you pay back your grad plus loan you pay a part of the percentage back to the US gov't according to
FAQ number 16 on the Federal Student Aid website. The interest rate is way better than a normal private loan, and the rate is capped just like the statford loans, although statford is obviously better (6.8%). So I guess it's subsidized by the federal gov't, but less so than the other federal loans. Right now I am paying back statford and grad plus loans: every month my payments both go to the same place, Wachovia. So why is one considered a federal loan and the other one not? I'm sure there's a simple answer to this, I'm just being dumb. The only differences I've seen between the two programs is that the interest rate is better with statford/perkins, and there is no limit on the grad plus loans, unlike statford which is tops out at $138,500 per individual.
So anyway, I am sorry for creating the confusion, I guess it doesn't really matter. I'm very excited for PCOM!! Let me know if anyone needs a roommate