Should I choose GradPLUS or a private loan?
You might want to choose a private loan if: • You are comfortable with the possibility of interest rates increasing beyond the interest rate cap of the GradPLUS loan • You have top-tier credit – at this point in time, these borrowers will presently be charged less interest, but if interest rates continue to climb, this benefit decreases or disappears altogether • You believe that there is very little possibility that you may use the deferment or forbearance options • You plan to only borrow the loan for a short time You might want to choose a GradPLUS loan if: • You like the certainty that a fixed-rate loan provides • If your credit is good, fair, or poor, your cost will likely be lower • You like the protection that the greater deferment and forbearance options provide • The repayment incentives offered may bring the repayment interest rate cost to less than 8.50%
