For some students there will be a financial gap between their student budget and the maximum they can receive from the Stafford loans. For example, a first year in-state student who has a student budget that aligns with our estimated cost of attendance (COA) and did not receive scholarship funding or other external resources would have a shortfall of funding of $10,985 (COA $53,707 minus Stafford loans $42,722). As a result, this student would need to apply for additional loan funding in the form of a Federal Grad Plus loan 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 that is separate from the Federal Stafford loans.
Graduate Plus vs Private loan Comparison Chart
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Graduate PLUS Loan
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Private Banking Educational Loan
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Choice of Lenders
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Students who attend Ohio State University borrow all federal loans (including the Grad PLUS loan) directly from the Federal government.
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Students have a choice of any bank or lending institution. For possible lenders, please conduct an online web search.
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Consolidation
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May consolidate with other federal loans.
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Not possible to consolidate with federal loans.
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Application Process
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paper application. Please return this paper application to:
Fax- 614-688-5455
Mail-
Ohio State University
College of Medicine
B043 Graves Hall
333 West 10th Avenue
Columbus, Ohio 43210
First-time Grad PLUS loan borrowers are also required to complete a
Master Promissory Note
AND
Entance Loan Counseling
It does not matter in which sequence you complete the application and Promissory Note.
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The application varies based on the lender.
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Co-Signer
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No cosigner is initially required. If the Loan is denied because of adverse credit, the student can pursue a cosigner.
Co-signers do not improve the interest rate offered.
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Most lenders may not require a cosigner.
If a cosigner is used the lender might offer a lower interest rate.
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Interest Rate
and Fees
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7.9 % Fixed
4% Origination fee but an upfront 1.5% rebate= 2.5%
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Variable interest rate and origination fee vary by bank.
Interest rate depends on your credit.
The variable interest rate is usually determined by the Prime or LIBOR rate plus a "margin" (which is determined by your Credit Score).
Please note that although the Prime rate is always higher than the LIBOR rate, the opposite is true on the margin. Therefore, please make sure you compare lenders that offer the Prime rate as well as those lenders that offer the LIBOR rate.
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Limits
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You may borrow up to your COA minus any other financial aid (scholarships and loans).
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You may borrow up to your COA minus any other financial aid (scholarships and loans.
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Repayment
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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 amount owed.
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Repayment varies from 0-12 months after the student stops attending or graduates.
Repayment Period: Varies 1-25 years, according to the lender and amount owed.
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Deferment
and Forbearance
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There are many deferment and forbearance options.
Many medical students can defer payment throughout their residency program by completing the Residency/Intership forbearance form.
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Most private loans offer a way for the student to defer making payment through their residency program. Please make sure your lender offers this possibility.
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Death/Disability
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Can be discharged upon death or total and permanent disability.
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Many private loans may not be insured against death or disability.
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Additional Information
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Federal Grad PLUS Loan
Questions and answers
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