Private vs. Federal Direct PLUS Loans

Private student loans are different than Federal Direct PLUS Loans for parents, graduates and professional students. For private loans, usually, the student is the borrower and will need a creditworthy co-signer such as a parent. Federal Direct PLUS Loans are in the parent’s name(s) or the graduate/professional student’s name.

Use this comparison chart to compare your own student loan options.

*An interest rate reduction of 0.25% is available to borrowers. To qualify, borrowers need to arrange with the loan servicer to have their payments automatically withdrawn from a checking or savings account. This interest rate reduction will remain on the account unless the loans are in a status which does not require payments, or automatic deduction is revoked by the borrower or suspended by the loan servicer according to the insufficient funds policy in effect when the agreement is signed. Upon request, FAME will provide a projection of the percentage of borrowers who are likely to benefit from this interest rate reduction.