Grad PLUS/Private Loans
Financial Services > Overview of Loans > Grad PLUS/Private Loans
For some students there will still be a financial gap between their student budget and the maximum $40,500 that they can receive from the Stafford loans. For example, first year students who have student budgets that align with our estimated cost of attendance (COA)of $46,000 and who did not receive scholarship funding or other external resources would have a financial gap of $5,500 (COA 46,000- Stafford loans 40,500). As a result, these students would need to apply for additional loan funding such as the Federal Grad Plus or a Private bank educational loan. We suggest you compare the differences between these two loan options so that you make the best choice for your situation.
The Federal Graduate Plus Loan and the Private Banking Education Loan are both credit based, and might require a cosigner. Both have an application and promissory note process.
The following chart list and compare some characteristics of the two types of loans.
Graduate Plus vs Private loan Comparison Chart
|
|
Graduate PLUS Loan |
Private Banking Educational Loan |
|
Choice of Lenders |
Students who attend |
Students have a choice of any bank or lending institution. For possible lenders, please conduct an online web search. A comparison tool can be found at finaid.org but not all lenders are listed. |
|
Consolidation |
May be consolidated at a fixed rate with other Federal student loans. Consolidation interest rates are based on the weighted average of these loans. |
Can consolidate with other private loans, not Federal Loans. |
|
Application Process |
Please complete the following paper application . Students are also required to complete a Master Promissory Note. |
The application varies based on the lender. |
|
Co-Signer |
No cosigner is initially required. If the Loan is denied because of adverse credit, the student can pursue a cosigner. |
Most lenders do not require a cosigner, but it is encouraged. If a cosigner is used the lender might offer a lower interest rate. |
|
Interest Rate |
7.9 % Fixed |
Interest rate and Origination fee vary based on variety of factors which may include Prime Rate/LIBOR/Lender/Credit Score. |
|
Limits |
There are no annual limits. You may borrow up to your COA minus any other financial aid. |
There are no annual limits. You may borrow up to your COA minus any other financial aid. |
|
Repayment |
Repayment begins within 60 days after the date of the final disbursement, once the student stops attending or graduates. Repayment Period: 10-25 years depending on repayment option chose and amount owed. |
Repayment varies from 3-12 months after the student stops attending or graduates.
Repayment Period: Varies 1-25 years, according to the lender and amount owed. |
|
Deferment |
There are many deferment and forbearance options. |
These options vary by lender. |
|
Death/Disability |
Can be discharged upon death of borrower or if borrower becomes totally and permanently disabled. |
Private loans are NOT insured against death or disability. |
|
|