Direct PLUS Loan Request - OSU Institute of Technology 2025

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unsubsidized loans add interest over the years that YOU have to pay for in the long run. subsidized loans add interest that the government pays for and you dont have to owe the interest back. basically, subsidized is much better.
What Are Some Reasons to Avoid PLUS Loans? First, PLUS loans have no automatic grace period. Then theres the fact they arent eligible for most IDR plans. Then, borrowing too much is easy to do, and finally, theyre nearly impossible to get out of, even in bankruptcy.
Unsubsidized loans have better interest rates and a lower fee as you noted. The fees do come off the loan, so youd have to make up the difference or take a slightly higher amount. Unsubsidized loans can benefit slightly from unpaid interest subsidies under very specific circumstances.
How much can I borrow in Direct PLUS Loans? There are no set annual or aggregate limits. You may borrow up to your full cost of attendance, minus any other financial aid you receive (including Direct Subsidized Loans, Direct Unsubsidized Loans, scholarships, and certain fellowships).
To qualify for a Parent PLUS loan, you must meet three criteria: Be the biological or adoptive parent (or in some cases, the stepparent) for a student enrolled at least half-time at an eligible school. Pass a credit check. Meet the general eligibility requirements for federal student aid.
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Mainly, they are more expensive. Direct PLUS Loans have an interest rate of 8.05% for the 2023-24 school year for all borrowers, compared with 7.05% for Direct Unsubsidized Loans for grad students. They also have a loan fee equal to 4.228% of the principal, which is four times the fee for a Direct Unsubsidized Loan.

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