A big thing you have to be careful about is the fact that your grad plus loan might be different depending on the state you'll be attending school in. I don't really know why that is.

I can't get that wachovia deal at my school. But if they don't pay the 3% origination fee for you, then that 3% reduction is essentially just a fee rebate. If the wachovia deal pays the 3% origination and then gives you an additional 3% rebate then that's a great deal.

http://www.moneycafe.com/library/prime.htm

this is the historical prime rate. Most lenders will updated your rate every month, but some will only do it every quarter.

Prime has averaged 6.76 over the last ten years. So if your rate held to the ten year average, you would have an average interest rate of 6.16. (At prime -.5%) On most grad plus loans you have an average interest rate of 7.9%-8.5%.

Statistically it is a good gamble. Prime is at 5.0% right now but there are inflationary pressures that might force the fed to raise rates which will affect the prime rate. If we return to 1980 style rates then a variable rate will screw you badly.

I can't get that wachovia deal at my school. But if they don't pay the 3% origination fee for you, then that 3% reduction is essentially just a fee rebate. If the wachovia deal pays the 3% origination and then gives you an additional 3% rebate then that's a great deal.

http://www.moneycafe.com/library/prime.htm

this is the historical prime rate. Most lenders will updated your rate every month, but some will only do it every quarter.

Prime has averaged 6.76 over the last ten years. So if your rate held to the ten year average, you would have an average interest rate of 6.16. (At prime -.5%) On most grad plus loans you have an average interest rate of 7.9%-8.5%.

Statistically it is a good gamble. Prime is at 5.0% right now but there are inflationary pressures that might force the fed to raise rates which will affect the prime rate. If we return to 1980 style rates then a variable rate will screw you badly.