Hey everyone! I’m starting PA school next month and feeling torn between private vs. federal loans
I would love some input from people who’ve been through this.
I was grandfathered into Grad PLUS loans, but the interest rates are brutal.
I have a strong credit score, and my husband just finished residency with 3 years of fellowship ahead before he hits his full attending salary.
I’ve been leaning toward private loans since I’d likely qualify for a lower interest rate (with my husband as a co-signer).
Also, I’ve come across some loans that doesn’t start accruing interest until after graduation unlike federal loans where it kicks in right at disbursement.
My thinking is that I could pay them off faster and save money overall.
That said, I’ve never taken out loans before and want to make sure I’m not missing something. Has anyone navigated this decision? What would you consider in my situation?
Federal vs Private Loans for PA school- Looking for advice
byu/BatFamous4925 inStudentLoans
Posted by BatFamous4925
2 Comments
In general you always want to use up all of your federal loan options before resorting to private loans. Federal loans offer many borrower protections that private loans don’t, like income driven repayment plans, loan forgiveness, and discharge upon death or disability. These protections can be well worth a slightly higher interest rate.
I start my PA program in August and would basically kill to be grandfathered into grad plus federal loans and professional status of PA, so that there is more flexibility in repayment options, forgiveness, etc. Bare minimum my private loan repayment would be $1,000+federal loans. I’m considering not even going at this point.