Law School Discussion

Nine Years of Discussion
;

Author Topic: Gradplus  (Read 1145 times)

john jacob

  • Sr. Citizen
  • ****
  • Posts: 317
    • View Profile
Gradplus
« on: July 09, 2008, 06:12:33 PM »
So I'm shopping for GradPlus loans. After maxing out the staffords at $20500, I have about 5-8k to cover. I'm considering gradplus for the federal LRAP from the college cost reduction act, however, the gradplus loans are also much more expensive than the staffords with the 3% origination fee and the 8.5% interest rate.

This effectively makes the interest rate about 10% for the Gradplus, unless I find a lender with good terms.

Should I get the gradplus? If I make it to a big firm, I probably won't care about any extra interest that I take on, if I end up in low-paying gov't or non-profit work, the possibility of having a big chunk of the extra gradplus loans forgiven is a big plus. However, it is effectively a 10% interest rate.

vjm

  • Sr. Citizen
  • ****
  • Posts: 1070
    • View Profile
Re: Gradplus
« Reply #1 on: July 09, 2008, 06:15:52 PM »
What's your alternative? Private?

You might get a better rate, but it won't be covered by the Federal LRAP.

john jacob

  • Sr. Citizen
  • ****
  • Posts: 317
    • View Profile
Re: Gradplus
« Reply #2 on: July 09, 2008, 06:19:53 PM »
two choices are parents or gradplus. Not considering private.

justadreamer

  • Full Member
  • ***
  • Posts: 59
    • View Profile
    • Email
Re: Gradplus
« Reply #3 on: July 10, 2008, 11:45:12 AM »
I have most of my tuition covered by stanford loans, therefore it is unnecessary for me to get a Gradplus. However, I have many expenses which I have outside of my school budget which I will have to take care of. Does anyone know if I happen to get a GradPlus loan for about $20,000 to take care of expenses I expect to have not covered by the school budget, will it affect my finacial aid (stanford loans).

john jacob

  • Sr. Citizen
  • ****
  • Posts: 317
    • View Profile
Re: Gradplus
« Reply #4 on: July 10, 2008, 11:52:16 AM »
You can borrow the max in stafford (20500, 8500 is subsidized) because grad students are considered independent.

You can borrow Gradplus to cover the rest of the school's estimated COA.

If your staffords don't cover the entirety of the tuition...

I LOLd in my pants

  • Full Member
  • ***
  • Posts: 19
  • When I get nervous, I LOL a lil' in my pants.
    • View Profile
Re: Gradplus
« Reply #5 on: July 10, 2008, 11:57:26 AM »
I believe you cannot apply for a GradPlus loan until you have maxed out your Stafford loans. So the Stafford loans would affect the GradPlus loans and not vice versa.

If your tuition and fees were for, say, 17k you would take out the 20.5k Stafford loan and the difference between that and the cost of school would be refunded to you for extra expenses. If you needed more money for living expenses then you would take out the GradPlus loan in that amount.

I am taking the 20.5k in Stafford loans to pay for the tuition not covered by my scholarship and fees plus I am taking 11,9999 (Max allowed by financial aid office) in GradPlus loans to pay for living expenses.
Baylor Fall 2011? Branch Davidian Compound here I come.

Cabra

  • Sr. Citizen
  • ****
  • Posts: 733
    • View Profile
Re: Gradplus
« Reply #6 on: July 10, 2008, 12:04:04 PM »
two choices are parents or gradplus. Not considering private.


Loans within a family are generally a bad idea--family relations will be strained or worse until you pay it off--how long would it take you? Any chance they'd give it to you as a gift?

If it's gradplus vs family loan, I'd take gradplus every time.
CLS 2011