How do private loans compare to GradPLUS loans?

The information below is only relevant if you are a graduate student. If you are an undergraduate, you cannot use a GradPLUS loan. Interest Rates: GradPLUS loans offer a fixed interest rate for the life of the loan which is the same for all borrowers (currently 8.5%) while most (but not all) private loans are based on a variable rate that is based on your credit strength. Keep in mind that most lenders offer incentives to lower the rate you might actually pay. The variable rate used for private loans is credit-based and wil increase and/or decrease according to the market environment. Consolidation: GradPLUS loans may be consolidated with other federal education loans such as Stafford or Direct loans. This may help to better manage your debt when you graduate and enter repayment. Repayment Length: GradPLUS loans are based on a 10-year repayment that begins 60 days following the final disbursement, although this can be deferred in many cases until you graduate. Private loans offer varia ... more