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T.H.E. FEDERAL Graduate PLUS Loan |
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Compare Private Loans vs. T.H.E. Federal
Graduate PLUS
Loans |
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T.H.E. Federal Graduate PLUS |
Private/Alternative |
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Borrower |
Loan is made to you (the
graduate/professional student), an endorser may be
required |
Loan is made to you;
however, a creditworthy co-borrower may be required. |
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Credit Requirements |
Credit approval based on federal
standards, not credit score. Endorser option if you
do not
meet credit requirements |
Credit approval based on credit score
and history |
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Loan limits |
Cost of education minus aid |
Varies by program of study (see
specific T.H.E. program for details) |
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Origination Fee |
3%, required by the Department of Education |
varies |
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Guarantee Fee |
0 to 1% default fee |
0% |
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Interest Rate |
Federal PLUS interest rate is fixed at 8.5% |
Variable interest rate based on
LIBOR, up to a maximum of 18% (the rate may change
quarterly). May be based on your credit and/or
co-borrower |
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Federal Consolidation |
Eligible for Federal Consolidation
programs |
Not eligible for Federal
Consolidation programs |
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Deferment/Forbearance Options
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Federal deferment and forbearance options
exist |
Forbearance options may be available
and are generally less flexible than Federal loan
deferments |
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Repayment Options |
Up to 25 years, standard principal and interest, interest only,
graduated and extended repayment options |
Up
to 20 years, options for interest only during early
years of repayment |
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Death/Disability |
PLUS loan can be discharged upon death of
borrower. Loan can also be discharged if a borrower
becomes totally and permanently disabled |
Most private loans** are NOT
insured against death or disability
(**the exception is T.H.E. Medical
MD/DO loans - only through residency period) |
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(Note: all terms subject to change) |
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ADDITIONAL
CONSIDERATIONS FOR YOU: |
Helpful guidance, as
provided by a distinguished Law School financial aid
director:
You may prefer the
Federal Graduate PLUS:
- You like the
certainty that a fixed-rate loan provides.
- Your credit is
good, fair, or poor, your cost will likely be lower
with Federal Graduate PLUS.
- You like the
protection of greater deferment and
forbearance options.
You may prefer a
Private loan:
- You are comfortable
with the possibility of interest rates increasing
beyond the interest rate cap of the Federal Graduate PLUS
loan.
- You have top-tier
credit. Borrowers with great credit scores may be
charged less interest now, but if interest rates
continue to climb, it could cost you more.
- You believe that
there is very little possibility that you may
use the deferment or forbearance options.
- You plan to borrow the loan only for a short time.
* see terms and conditions
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Graduate PLUS Comparison
