Comparing PLUS and Private Loans | Financial Aid

On July 4, 2025, the president signed the One Big Beautiful Bill Act into law, making changes to some federal student aid programs. Stay informed about the big updates from the new law. Our webpages will be updated as more information becomes available.

There are various differences between federal and private lenders such as the borrower, lender, interest rates, fees, and terms. The information below can help you compare options.

General Information
Requirements
Interest Rates and Fees
Repayment

General Information

Topic	Parent PLUS	Private	Graduate PLUS
Student Level	Undergraduate	Undergraduate, graduate or professional	Graduate or professional
Loan Borrower	Parent of a dependent undergraduate student	Student or parent (varies by lender)	Graduate or professional student
Lender	Federal government	Private lenders and financial institutions	Federal government
Annual Loan Limits	Cost of attendance minus other student aid	Cost of attendance minus other student aid	Cost of attendance minus other student aid

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Requirements

Topic	Parent PLUS	Private	Graduate PLUS
Free Application for Federal Student Aid (FAFSA) Required	Yes	Depends on the lender	Yes
Application Required	Yes ( Federal Student Aid website)	Yes (contact the lender)	Yes ( Federal Student Aid website)
Requires Certification by WVU	Yes	Yes	Yes
Credit Criteria	Borrower may not have an adverse credit history; if so, they must have a creditworthy endorser/cosigner	Varies by lender but may include credit score, debt-to-income ratio, or no adverse credit history	Borrower may not have an adverse credit history; if so, they must have a creditworthy endorser/cosigner
Endorser or Cosigner Required	Borrowers with little or no credit history (or an adverse credit history) may require an endorser	Borrowers with little or no credit history (or an adverse credit history) may require an endorser (varies by lender)	Borrowers with little or no credit history (or an adverse credit history) may require an endorser
Impact of Loan Denial	Potential to increase unsubsidized loan amount; maximum increase amount varies by student level	No increase in other aid eligibility	No increase in other aid eligibility

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Interest Rates and Fees

Topic	Parent PLUS	Private	Graduate PLUS
Type of Interest	Fixed	Fixed and variable options (varies by lender)	Fixed
Interest Rate	Rates can be found on the Interest Rates and Fees for Federal Student Loans webpage	Depends on the borrower and/or endorser credit (varies by lender)	Rates can be found on the Interest Rates and Fees for Federal Student Loans webpage
Loan Fees	Loan fees can be found on the Interest Rates and Fees for Federal Student Loans webpage	Varies by lender	Loan fees can be found on the Interest Rates and Fees for Federal Student Loans webpage

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Repayment

Topic	Parent PLUS	Private	Graduate PLUS
In-School and Grace Period Deferment Options	Full deferment or immediate repayment options available (as determined by the application)	Varies by lender	Full deferment or immediate repayment options available (as determined by the application)
Prepayment Penalties	No	Varies by lender	No
Repayment Plans	The government offers various repayment plans, including income-based options; more information at "Choose the federal student loan repayment plan that’s best for you" webpage	Varies by lender	The government offers various repayment plans, including income-based options; more information at "Choose the federal student loan repayment plan that’s best for you" webpage
Disability Discharge	Parent only	Varies by lender	Student only
Death Discharge	Student or parent	Varies by lender	Student

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