Graduate PLUS vs private loans : The B-School Application
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# Graduate PLUS vs private loans

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13 May 2008, 18:23
I just received my financial aid package and I'm trying to decide whether to fund the remainder of the cost with federal graduate plus loans or private loans. The graduate plus have a fixed rate of 8.5%, which seems high to me. I have very good credit, but know that the private loans are variable and will fluctuate with the prime or libor rate. Can anyone offer suggestions or commentary on pros and cons of both of these? Thanks!
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14 May 2008, 07:59
goBears wrote:
I just received my financial aid package and I'm trying to decide whether to fund the remainder of the cost with federal graduate plus loans or private loans. The graduate plus have a fixed rate of 8.5%, which seems high to me. I have very good credit, but know that the private loans are variable and will fluctuate with the prime or libor rate. Can anyone offer suggestions or commentary on pros and cons of both of these? Thanks!

Considering that prime is at 5%, it is a great time to go private. You can always consolidate the private loans to a fixed rate loan when prime climbs again, but if prime + % is lower than 8.5% keep the private loans.
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15 May 2008, 21:45
lanter1 wrote:

Considering that prime is at 5%, it is a great time to go private. You can always consolidate the private loans to a fixed rate loan when prime climbs again, but if prime + % is lower than 8.5% keep the private loans.

you can't consolidate private loans under the federal program, but i am assuming you have another option in mind?
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