Grad PLUS Loans?

[wishingforPHD]

I will be attending a PhD program in the fall. I have a full tuition waiver plus a stipend, but the stipend won't be enough to pay all of my expenses for the year. What kind of loans would be best? Can you get government loans if they are not for tuition, and what is the deal with the Grad Plus loans? Help!

[student4life]

You may want to complete FAFSA. Government loans such as Stafford provides susbsidize loans so you don't have to pay interest while you're in school. I think this kind of loan (vs. private) is better since it also gives you (I think) extra time after graduation to start paying for the loan. The financial aid institution of your school should be able to provide you with more info about this.

Good luck with grad school!

[denidzo]

I will be attending a PhD program in the fall. I have a full tuition waiver plus a stipend, but the stipend won't be enough to pay all of my expenses for the year. What kind of loans would be best? Can you get government loans if they are not for tuition, and what is the deal with the Grad Plus loans? Help!

You can get loans if they are not for tuition - I do it every year, because my stipend affords not much but standing in the food line :wink: Stafford Subsidized are the best way to go, followed by Stafford unsubbed and Perkins.

[Dreams]

You can get loans if they are not for tuition - I do it every year, because my stipend affords not much but standing in the food line :wink: Stafford Subsidized are the best way to go, followed by Stafford unsubbed and Perkins.

I would argue that Perkins loans are now the better of the two because the Sub Staff now has a higher fixed interest rate of 6.8%. The Perkins still stands at 5%.

But yes OP, go for the Sub Staff and Perkins loans. You will get a grace period of 6 months after graduation to begin paying them off.

If you don't qualify for either, which I am not sure of any reason why you would not if you have remaining need, go for the Unsub Staff over any other private loans. Though be aware that you will either need to pay interest in the Unsub Staff, or let it compound. With the new rate, I am not liking the compounding idea at all if the borrowed amount is high.

[newage2012]

Perkins does not have originations charge. Stafford has a 3% fee when you take out the loan.

And Perkins have a 9-month grace period, and have special provisions/cancellation benefits.

Thorugh, if you have high interest debt (i.e. Credit Card), take out every single penny that you are being offered and pay it off.

Furthermore, you should consider open an IRA (Individual Retirement Arrangement) account, which gives you some generous tax-breaks and immune from any legal liability (i.e. bankruptcy, wage garnishments, child support delinquency etc.). Use your loan proceed to fund your IRA account.

But

[michigan girl]

Should students get a Grad Plus Loan at all? Or try to find other avenues before pursuing them.

[newage2012]

Should students get a Grad Plus Loan at all? Or try to find other avenues before pursuing them.

If we talk only about loans, then the order of preference is:

Perkins > Subsidized Stafford > Unsub Stafford >> Grad PLUS >>>>>> Private Student Loan >>>>>>>>>>>>>>>>Bank Personal Loans>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Credit Cards

[moommoombaba]

Grad plus loans is at 8.5% it's crazily high considering the type of the economy we are in. i just thought we are in a recession and loan rate would drop. i am offered 2/3 of my COA from Grad plus, but i am not taking out a single penny from it even i need some of it. instead i got a loan through an unusual mean (from a foreign bank, at 4.7%!!)

[michigan girl]

I know what you mean. I am in repayment with two private loans and both their interest rates are 3-4%. I'm very reluctant to use the Grad Plus Loan. Interest rate is so high.

[aginath]

Grad plus loans is at 8.5% it's crazily high considering the type of the economy we are in. i just thought we are in a recession and loan rate would drop. i am offered 2/3 of my COA from Grad plus, but i am not taking out a single penny from it even i need some of it. instead i got a loan through an unusual mean (from a foreign bank, at 4.7%!!)

I'm reminded just how relative things are. I have so many friends who squawked over having 5% and 6% undergrad loans earlier this decade. I graduated in 99 and again in 00. My loan rates were 8%. While I won't argue that 3% and 4% would be awesome, I would never refer to 8.5% as "crazily" high.

[sankd]

I got mine for 7.9%. While I have excellent credit, I don't think it was worth shopping around for some loan with adjustable rates.