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Comparing Grad PLUS and Private Loans
- Low Variable Rates
- No in school payments
- Easy Online Application
Determining which graduate student loan will be the best use of your money now and in the future is an important exercise to do before you sign on the dotted line of any loan. What follows is a sample comparison of loan options and their estimated costs - be sure you do your own, tailored to your own needs and financial circumstances.
In the two examples below, we look at two scenarios and how much your monthly payment, interest rate, and total interest paid is affected with different loan scenarios.
Best Case Scenario Comparison
Assumptions:
- Borrowing $20,000 total.
- Federal student loan term of 10 years
- Private student loan term of 20 years
- Prime and 1 month LIBOR using most recent published rates
- Borrower has best possible credit
| Monthly Payment | Effective Rate | Total Interest Paid | |
|---|---|---|---|
| Stafford Loan | $230.16 | 6.8% | $7,619.31 |
| PLUS Loan | $241.60 | 7.9% | $8,990.36 |
| Private Loan 1 | $125.88 | LIBOR + 4%: 4.44% | $10,212.38 |
| Private Loan 2 | $108.43 | Prime - 0.5%: 2.75% | $6,024.24 |
Poor Credit Scenario
Assumptions:
- Borrowing $20,000 total.
- Federal student loan term of 10 years
- Private student loan term of 20 years
- Prime and 1 month LIBOR using most recent published rates
- Borrower has worst possible credit while still qualifying for loan
| Monthly Payment | Effective Rate | Total Interest Paid | |
|---|---|---|---|
| Stafford Loan | $230.16 | 6.8% | $7,619.31 |
| PLUS Loan | $241.60 | 7.9% | $8,990.36 |
| Private Loan 1 | $255.12 | LIBOR + 14%: 14.44% | $41,229.81 |
| Private Loan 2 | $223.01 | Prime + 8.95%: 12.2% | $33,524.68 |
Graduate PLUS Loan FAQs
How much can I borrow with a GradPLUS loan?
How are graduate PLUS loan funds disbursed?
What are graduate PLUS loan credit requirements?
Can I use a graduate PLUS loan for my Online degree?
What's the interest rate on GradPLUS Loans?
Get your questions answered by our experts at the Grad Loans Forum.
Additional Graduate Financial Aid Help
- Graduate Stafford loan frequently asked questions
- Graduate PLUS loan frequently asked questions
- Graduate private student loan frequently asked questions
