Private vs. Fed with PAYE and IBR

[petro244]

---

Members don't see this ad.

So I have been approved for a good chunk of my first year expenses through discover bank at 6.24%. The amount is the exact same as I was offered in Fed Direct loans. Of course this is lower than our Fed Direct loans at 6.8. I am really considering the discover loan since there are no origination fees, the rate is lower, there is still a grace period, and no payments are reqire while i'm in school. But then I came on SDN and read all about this IBR/PAYE (am I really the only one who didn't know about these program?)

Would anyone take a 6.8 loan with a 1.0something% origination fee instead of a 6.24% loan with no origination fees just because you have the added security of these repayment programs?

 

[NewMexico]

Does anyone have a link to the comparison between the repayment terms? Also trying to decide whether to do grad plus or private. Thanks!

 

[Rlow04]

Does anyone have a link to the comparison between the repayment terms? Also trying to decide whether to do grad plus or private. Thanks!

Check out my thread on PAYE vs IRB:

http://forums.studentdoctor.net/showthread.php?t=1011480

Even though the the numbers look better on private loans, they are very strict with repayment. If you're struggling, they're no where near as helpful as fed loans. And with IRB and PAYE, you have a lot of options.