Private (4.7%) or Federal (8.08%) Loans?

[RedDevilz99]

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Title. Besides repayment plans and PSLF are there any other incentives to go federal?

 

[TheRealBibFortuna]

Where did you find private loans that low? All the private loans I’ve found have been around the same interest rate.

 

[wysdoc]

Title. Besides repayment plans and PSLF are there any other incentives to go federal?

The main incentive to take out a Subsidized Federal loan is that all payments (interest and principal) can be deferred until the end of medical school.
With a private loan you have to make interest payments starting the very first month after you take it.

 

[mistafab]

The main benefit in my perspective is the protections that federal loans offer. All those years post-covid of frozen payments and zero interest.... No benefits to those with private loans. Also, you are guaranteed protected if you are disabled permanently. God forbid you also have a job fall through and need to scramble - that IBR can be huge. For a private loan, the math doesn't care if you're out the job - you owe them or else.

 

[RedDevilz99]

Where did you find private loans that low? All the private loans I’ve found have been around the same interest rate.

Sallie Mae

 

[RedDevilz99]

The main incentive to take out a Subsidized Federal loan is that all payments (interest and principal) can be deferred until the end of medical school.
With a private loan you have to make interest payments starting the very first month after you take it.

I can defer interest payments with the private loans as well.