Alternative to Grad PLUS loans

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
priv_ryan

New
Posts: 3
Joined: Mon Sep 16, 2013 10:41 am

Alternative to Grad PLUS loans

Postby priv_ryan » Sun Dec 31, 2017 12:08 pm

Hi everyone - we are a team of grads from top law schools building an organization called LearnFund (https://www.learnfund.org/), which aims to help families afford higher ed via alternatives to Grad PLUS and Private loans that may offer better terms and more flexibility.

This is NOT a post to advertise our social venture. Rather, I'd love any feedback on whether our concept resonates. Given how quickly the economy can change, we were scared to take out loans in law school, despite going to top schools. We are aiming to solve this problem. For those of you taking out Grad Plus or private loans, how do you feel about them? Are you concerned about taking out too much debt for law school?

Any feedback on Grad PLUS // private loans or on this initiative would be much appreciated!

Nebby

Diamond
Posts: 31199
Joined: Sat Feb 01, 2014 12:23 pm

Re: Alternative to Grad PLUS loans

Postby Nebby » Sun Dec 31, 2017 12:24 pm

How would these differ from private loans?

priv_ryan

New
Posts: 3
Joined: Mon Sep 16, 2013 10:41 am

Re: Alternative to Grad PLUS loans

Postby priv_ryan » Sun Dec 31, 2017 1:32 pm

These differ from private loans in a few ways:
- there are no interest rates, payments or accrued interest during school
- the repayments are based on your income, not fixed
- there is no obligation to pay a certain principal + interest back if god forbid you can't afford it
- you get free career & salary counseling

Does any of that resonate with you?

User avatar
UVA2B

Gold
Posts: 3407
Joined: Sun May 22, 2016 10:48 pm

Re: Alternative to Grad PLUS loans

Postby UVA2B » Sun Dec 31, 2017 1:49 pm

Is there a cap at which payments aren’t tied to income? For instance, if the person exceeds a set income level that would cause their payments to exceed the principal on the loan, could it be capped?

priv_ryan

New
Posts: 3
Joined: Mon Sep 16, 2013 10:41 am

Re: Alternative to Grad PLUS loans

Postby priv_ryan » Sun Dec 31, 2017 2:08 pm

Yes, payments would be capped at 2.25x principal maximum (just like any other financing service, we would need a cap that's higher than the principal offered). This means that you'll never pay more than a certain amount even if you make your millions soon after graduating.



Return to “Financial Aid?

Who is online

Users browsing this forum: No registered users and 5 guests