Financial Services

Grad PLUS/Private

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For some students there will be a financial gap between their student budget and the maximum they can receive from the Stafford loans. For example, a first year in-state student who has a student budget that aligns with our estimated cost of attendance (COA) of $50,165 and who did not receive scholarship funding or other external resources would have a financial gap of $7,443 (COA $50,165 minus Stafford loans 42,722). As a result, this student would need to apply for additional loan funding in the form of a Federal Grad Plus loan or a Private bank educational loan. We suggest you compare the differences between these two loan options so that you make the best choice for your situation.

The Federal Graduate Plus Loan and the Private Banking Education Loan are both credit based, and might require a cosigner. Both have an application and promissory note process that is separate from the Federal Stafford loans.

Graduate Plus vs Private loan Comparison Chart

	Graduate PLUS Loan	Private Banking Educational Loan
Choice of Lenders	Students who attend Ohio State University borrow all federal loans (including the Grad PLUS loan) directly from the Federal government.	Students have a choice of any bank or lending institution. For possible lenders, please conduct an online web search. A comparison tool can be found at finaid.org but not all lenders are listed. Please make sure to review those lenders with loans specifically for medical students.
Consolidation	May consolidate with other federal loans. Interest rate is a weighted average of all federal loans included in the consolidation.	May NOT consolidate federal loans. Interest rate depends on your credit.
Application Process	paper application First-time Grad PLUS loan borrowers are also required to complete a Master Promissory Note AND Entance Loan Counseling It does not matter in which sequence you complete the application and Promissory Note.	The application varies based on the lender.
Co-Signer	No cosigner is initially required. If the Loan is denied because of adverse credit, the student can pursue a cosigner. Co-signers do not improve the interest rate offered.	Most lenders do not require a cosigner. If a cosigner is used the lender might offer a lower interest rate.
Interest Rate and Fees	2008-09 loans are 7.9 % Fixed 4% Origination fee but an upfront 1.5% rebate. New rate know in June of each year.	Variable interest rate and origination fee vary by bank. The variable interest rate is usually determined by the Prime or LIBOR rate plus a "margin" (which is determined by your Credit Score). Please note that althought the Prime rate is always higher than the LIBOR rate, the opposite is true on the margin. Therefore, please make sure you compare lenders that offer the Prime rate as well as those lenders that offer the LIBOR rate.
Limits	You may borrow up to your COA minus any other financial aid (scholarships and loans).	You may borrow up to your COA minus any other financial aid (scholarships and loans.
Repayment	Repayment begins within 60 days after the date of the final disbursement, once the student stops attending, or graduates. Repayment Period: 10-25 years depending on amount owed.	Repayment varies from 3-12 months after the student stops attending or graduates. Repayment Period: Varies 1-25 years, according to the lender and amount owed.
Deferment and Forbearance	There are many deferment and forbearance options. Many medical students can defer payment throughout their residency program by completing the Residency/Intership forbearance form.	Most private loans offer a way for the student to defer making payment through their residency program. Please make sure your lender offer this possibility.
Death/Disability	Can be discharged upon death or total and permanent disability.	Most private loans are NOT insured against death or disability.
Additional Information	Federal Grad PLUS Loan Questions and answers	Private Banking Education Loan