I am getting ready to enter a law school this fall and need to apply for a student loan.
My options are either Grad Plus or private lenders.
I plan to work in the biglaw upon graduation. If I choose private lenders would I get a loan based on prime rate or LIBOR?
Which loan type should I choose and why?

Thank you in advance.

There are many different types of private loans, and each has its own rules and requirements.  My personal opinion is that borrowers should exhaust all federal loan options, including PLUS loans, before considering private student loans, but borrowers with good credit who don’t hit any repayment snags or unanticipated income difficulty should be fine either way. 

I believe private loans are more risky and often more expensive than federal loans.  Not everyone agrees with me.  I suggest you seek advice from several sources, including your school’s financial aid professionals, before making your decision.  Some of the reasons I’m not crazy about private loans and would personally have chosen GradPLUS if it had been available include:

• Private loan rates and terms are not regulated the same way they are for federal loans.
• Private loans don’t have the same fixed rates and flexible repayment options that federal loans have.
• Private loans do not have the same types of discharge, deferment and forbearance options that are available for federal loans, although some do have limited discharge options.

For questions to ask when considering a private loan, see the Project on Student Debt website: http://projectonstudentdebt.org/private_loan_questions.vp.html

Thanks for answering my question. I am getting ready to enter a law school this fall and need to apply for a student loan.
My options are either Grad Plus or private lenders.
I plan to work in the biglaw upon graduation.
Which loan type should I choose and why?
The interest rate on GradPlus loan is 7.9% fixed plus 4% origination fee which makes it even more expensive. For someone like me who has an excellent credit the starting adjustable rate on private loans could be as low as 4% with no origination fee. So I think pricewise it will be cheaper for me.

That’s the alternative argument, yes.

Who thinks Russ may have ties to the lending industry?

I do.

Agreed, exhaust all (ALL) federal loans before looking privately. Honestly, private education loans are scary as hell. Be extremely careful!

Thanks for the “advice” Russ.