Private or GradPlus?

[Msk3195]

I am interested in seeing what people think/have done in terms of private loans vs GradPlus loans?

I want to look into private loans but my university is really pushing GradPlus loans - I am not sure this is the direction I want to go in since their interest rate is fixed and is most likely higher than the refinanced rate I would have after graduation.

Any thoughts?

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[Nikj]

Is this for medical school? I believe a lot of people take Stafford loans out.

 

[SurgeDO]

what? just pick the ones with the lower interest rates. Most likely Grad Plus. Also, Grad Plus loans fall into the Fed Loans repayment programs.

Utilize your Stafford loans. When those run out, utilize Grad Plus. Unless you are the only person with income in a family of 4, you'll likely be fine with just Staffords and Grad Plus loans.

 

[Espressso]

Incoming m1 here but I've always heard to refrain from private scholarships. I'll be using the Stafford and GradPLUS loans.

 

[Noisewater-TDX]

Incoming m1 here but I've always heard to refrain from private scholarships. I'll be using the Stafford and GradPLUS loans.

Same,

we were told to stay away from private loans if at all possible.

 

[Msk3195]

But why are we being pushed to take GradPlus - are private more complicated, or is it just easier for the school?

Private loans will probably have a lower interest rate if you have good credit and your parents cosign.

 

[SurgeDO]

But why are we being pushed to take GradPlus - are private more complicated, or is it just easier for the school?

Private loans will probably have a lower interest rate if you have good credit and your parents cosign.

who is pushing you to get private loans?

private loans usually do not have better interest rates. when you graduate medical school, you have to repay your loans. the majority of medical students only borrow from the government either through Stafford or Gradplus loans. because these loans are borrowed from the government, they can be repaid through government repayment programs. a lot of benefits come with these programs (loan forgiveness, PSLF, etc.) that you cannot get with private loans.

unless these private loans have an AMAZING interest rate (<2%), I wouldn't touch them. if your medical school administration is pushing you to take them out, I would seriously question your school's administration's incentives. they probably have some skin in the game (which wouldn't be surprising coming from a DO school).

 

[Msk3195]

who is pushing you to get private loans?

private loans usually do not have better interest rates. when you graduate medical school, you have to repay your loans. the majority of medical students only borrow from the government either through Stafford or Gradplus loans. because these loans are borrowed from the government, they can be repaid through government repayment programs. a lot of benefits come with these programs (loan forgiveness, PSLF, etc.) that you cannot get with private loans.

unless these private loans have an AMAZING interest rate (<2%), I wouldn't touch them. if your medical school administration is pushing you to take them out, I would seriously question your school's administration's incentives. they probably have some skin in the game (which wouldn't be surprising coming from a DO school).

No they are pushing grad plus loans not private.