Once other funding sources are exhausted, students often utilize private loans to meet their cost of attendance. Private loans are credit based, and cannot be certified for more than the financial aid budget, less other aid received. The Grad PLUS is a private loan available to graduate and professional students. The comparison chart below is an overview of the Grad PLUS loan as well as two other private loans: The Medloans ALP (MD students only) and the Signature Loan (utilized by undergraduate and International students). The majority of students (including medical students) utilize the Grad PLUS program, however the choice of private loan is up to the borrower and is not limited to the three reviewed below.
Medloans ALP
Grad PLUS
Signature
Origination Fee
0%
3%
Repayment or Supplemental Fees
1.5%
0% - 6% (depends upon borrower credit)
Other Fees
1% “default fee”
Interest Rate Formula
Prior to repayment: Prime + 0% (variable monthly) In repayment: Prime + 2% (variable monthly)
8.5% (fixed)
Interest rate formula depends upon borrower credit: Prime – 0.25% Prime +.5% Prime + 1% Prime + 1.75% Prime + 2% Prime + 6% (variable monthly)
Interest Capitalization
Unpaid interest capitalizes when repayment begins.
Grace Period
36 months (if entering residency program after graduation)
No grace period
6 months
Deferment Options
none
Up to 3 years economic hardship
Up to 4 years for residency program
Maximum Repayment Time
Up to 20 years
Up to 25 years (up to 30 years with consolidation)
Up to 30 years
Eligible for Federal Consolidation?
No
Yes
Borrower Benefits available?
Yes Direct Repay – 0.25% interest rate reduction MEDLOANS Rewards – Upon repayment, receive immediate 0.5% reduction (on time payments required) With benefits, may get current interest rates down as low as 9.0%* in repayment (Prime + 1.25%)
Yes Sallie Mae offers an initial .25% interest rate reduction. Additional rate reductions available during repayment for on-time payments and automatic debit. According to Sallie Mae, borrowers may get interest rates down as low as 6.75%.
None
Contact the Financial Aid Office: (847) 578-3217