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
| 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
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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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