Review & Compare PLUS Loans
Review, compare, & choose a PLUS Loan
Not all PLUS loans are the same. Many lenders, guarantors, and
servicers have modified their fees and interest rates to make their
PLUS loan more attractive. Some of these borrower benefits are worth
Please take the time to review and compare each lender's borrower
benefits to determine the PLUS loan that best meets your current and
Click on each of the lenders listed to the left to review and
compare their borrower benefits.
Things to consider when
choosing a PLUS Loan
Here are some things to consider to help make your PLUS loan choice
1. If you choose a PLUS loan that has an interest rate reduction
benefit, the monthly payment will be based on the full interest
rate. The reduced rate of interest, however, will allow for more of
each month's payment to be applied onto the loan principal. This
will shorten the length of the loan, and will decrease the total
amount of interest paid.
2. If you prefer to pay your monthly PLUS loan payments
automatically through your bank account, consider one of the PLUS
loans offering a payment incentive for this arrangement. Each of the
PLUS loans we list has a payment incentive, but the Bank of America
or the Academic Financing Corporation PLUS loans have the largest
interest rate reductions.
3. If you prefer not to pay your monthly PLUS loan payments
automatically through your bank account, consider a PLUS loan which
offers a borrower benefit or payment incentive other than the
auto-pay incentive. Consider Student Loan Xpress, or Citibank , or
4. If you are considering the in-school forbearance option while the
student is enrolled then consider a PLUS loan that has borrower
benefits which occur at a time other than during repayment.
Forbearance is a postponement of payment option where no payments
are due while the student is enrolled but interest will be charged.
Forbearance is not a repayment period so many payment incentives may
not be applicable. Consider the Student Loan Xpress PLUS or the
Citizens Bank PLUS. These borrower benefits occur at full
disbursement, not at repayment.
5. If you usually make extra principal payments on loans, or plan
to, to reduce the length and the total interest paid, consider a
PLUS loan which will apply more of each payment towards the
principal. Realize that you are able, on your own, to pay down the
principal with any PLUS loan and all of the PLUS loans we list have
benefits and incentives which reduce the length of the loan. The
Bank of America and the Academic Financing Corporation PLUS loans,
with their payment incentives, have the largest portion of each
month's payment going towards the principal.
6. If you are planning to pay the PLUS loan off within a few years
and, therefore, not planning to take the full 10 or more years to
pay it off, consider a PLUS loan which will give you an immediate
borrower benefit. Consider the Student Loan Xpress PLUS for their 3%
reduction of principal at full disbursement.
7. A word of caution about payment incentives linked to making a
number of on-time payments: only a small number of borrowers
acutally benefit from this type of incentive because there will be
the occassional late payment being made. If you select a loan with
such a payment incentive you can ensure that payments will be made
on time by arranging for automatic payments through your bank
account. None of the PLUS loans we list on our web site offer a
payment incentive linked to making a number of on-time payments.
This type of payment incentive, however, is offered on many
consolidation loans. If you plan to consolidate your PLUS loan(s)
try to select a consolidation loan with the least number of on-time
monthly payments required.