August 5, 2018
Hello and thanks for reading/responding. Looking to take out loans to cover my masters degree for the next 1.5 years. Offered a unsubsidized loan at 6% with almost no “fees” – time plus deferment seems like a good option for me and my family not having to pay anything or accrue interest for 2 years. But don’t have enough in those loans to cover everything so need more. Also offered a unsubsidized loan at 7% with 4% fees. Can someone explain how the 4% fees are calculated against say $10k in loans? Also, when looking at private loans like Lendkey, they explain under their fixed percent monthly payment model that you pay while you are in school ($25 for 48 months plus 6 months during deferment period then 120 months of x amount) which to me seems like the same “fee” type suggested under the unsubsidized loans. Am I crazy?
May 3, 2014
With the grad plus loan, the origination fees are added up front. So if you borrow 10k, your starting balance will be $10,400.
The big question on grad plus vs private loan debate is whether or not you think you will need student loan forgiveness or the income-driven repayment plans that are available for federal loans. These protections can be really helpful if you struggle to find a job after school or are laid off at some point before your loans are paid in full.
This article might be helpful in evaluating your options: https://studentloansherpa.com/graduate-loans-vs-private-loans/
Best of luck!
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