Federal vs. Private: Choosing The Best Student Loan In 2024
Parent PLUS Loan rates have gone up again for this season...they are now 9.08% for all borrowers....plus a 4% origination fee.
Private Loans May be an interesting alternative. Borrowers with good credit can get rates starting just under 5% with no fees. Below you’ll find a link to a student loan marketplace, where you can compare and get pre-approved. One of the lenders, Earnest, actually has a Rate Match Guarantee. You’ll also see our suggestion on steps you can take to help ensure you choose the right student loan.
4 Steps To Choosing the Best Student Loan In 2024:
Step 1: Apply through College Ave here, to get your rate. (3 Minutes to Apply.)
Step 2: Apply through Sallie Mae here, to get your rate. (No origination fee or pre-payment penalty.)
Step 3: Apply through Earnest here, to get your rate. (100% competitor rate match guarantee.)
Step 4: Compare your private rates to the Federal PLUS loan* and to 3 state loan options; Massachusetts, Rhode Island, Iowa.
**NOTE: The federal PLUS loan will have the highest origination fee (4%) and likely the highest rate (~9.08%), but they also offer forgiveness programs for civil service employees and more flexible repayment terms than private or state loans.
Lender Fact Sheet
College Ave
- Apply in as little as 3 minutes and get an instant credit decision
- Multiple repayment options from deferred to immediate principal and interest
- Choice of how long you take to repay the loan - 5, 8, 10, or 15 years
- 0.25% interest rate reduction when you make required payments by automatic debit
- Borrow up to 100% of your cost of attendance (minimum $1,000)
Sallie Mae
- Lowest rates shown include 0.25 percentage point interest rate discount with auto debit payments.
- Applying online is easy - you could receive a credit result in about 10 minutes.
- Multiple repayment options from in-school payments to deferred. No origination fee or prepayment penalty.
- Borrow up to 100% of school-certified expenses, whether you're online or on campus.
- Last year, students were 4x more likely to be approved with a cosigner.
- Disclosures
Earnest
- Check your eligibility in just 2 minutes
- Fast application and decision-making process
- Flexible repayment options
- No fees for origination, disbursement, prepayment, or late payment
- Skip a payment once per year (once repayment period restarted)
- Covers up to 100% of the school's certified cost of attendance
- 9 month grace period (3 months more than most lenders)