Paying for college is stressful. Tuition keeps rising, living costs are up, and families are forced to borrow more than ever. For many parents and graduate students, the Federal PLUS Loan looks like the default option. It’s easy to apply for, widely known, and backed by the government.
But here’s the real question: Is it actually the best deal for you?
In many real-world cases, the answer is no. Let’s break it down using the PAS copywriting framework — Problem, Agitate, Solution — with clear facts, real numbers, and everyday language.
Problem: Federal PLUS Loans Are Expensive, Even If They’re Easy
Federal PLUS loans (Parent PLUS and Grad PLUS) come with some of the highest interest rates among federal student loans.
For the 2024–2025 academic year, the numbers speak for themselves:
- Parent PLUS Loan interest rate: ~8.05%
- Grad PLUS Loan interest rate: ~8.05%
- Origination fee: ~4.228% taken upfront
That means if you borrow $50,000, more than $2,100 is deducted immediately as a fee. You still pay interest on the full amount.
Now compare that to many private student loan lenders, where:
- Interest rates can start as low as 5–6% (with credit approval)
- Origination fees are often 0%
- You may get flexible repayment options
Yet, many families never compare. They assume federal loans are always cheaper or safer.
That assumption costs money.
Agitate: The Hidden Cost of “Playing It Safe”
Let’s look at a realistic case study.
Case Study: $60,000 in Student Loan Borrowing
Scenario 1: Federal PLUS Loan
- Loan amount: $60,000
- Interest rate: 8.05%
- Origination fee: 4.228% (~$2,537)
- Repayment term: 10 years
Estimated total repayment: ~$87,000
That’s $27,000+ in interest and fees.
Scenario 2: Private Student Loan (Good Credit Profile)
- Loan amount: $60,000
- Interest rate: 6.1%
- Origination fee: $0
- Repayment term: 10 years
Estimated total repayment: ~$80,000
That’s a savings of around $7,000 over the life of the loan.
And this is not a rare situation. According to recent student lending data, borrowers with:
- Stable income
- Credit scores above 700
- A qualified co-signer
often receive lower rates than Federal PLUS loans.
Now imagine what that extra $7,000 could do:
- Pay for rent after graduation
- Cover a semester abroad
- Reduce stress during job searching
Instead, it’s lost to interest.
Solution: Compare Before You Commit
This is where our student loan options come in.
We’re not saying federal loans are bad. They work well for many borrowers, especially those who need income-driven repayment or forgiveness programs.
But if you:
- Don’t qualify for federal forgiveness
- Plan to repay steadily
- Have decent credit or a co-signer
Then, a private student loan can offer a better rate than a Federal PLUS loan.
Why Our Student Loans Stand Out
Here’s what borrowers care about today (and yes, these are trending student loan keywords in 2025):
- Lower interest rates vs PLUS loans
- No origination fees
- Flexible repayment plans
- Fast approval process
- Co-signer release options
- Transparent loan terms
No long paperwork. No surprise deductions. Just clear numbers.
Real Talk: Federal Doesn’t Always Mean Cheaper
A lot of people believe:
“Federal loans must be cheaper because they’re from the government.”
That’s not how it works anymore.
PLUS loans are designed for access, not affordability. They help when funding gaps exist, but they don’t compete on price.
Private lenders compete on rates, and that competition benefits borrowers.
Recent trends show:
- More families are refinancing PLUS loans into private loans.
- Students are rate-shopping before signing
- Borrowers are prioritizing total repayment cost, not just monthly payments
This shift is happening because people are tired of overpaying.
How to Decide What’s Right for You
Ask yourself a few simple questions:
- Do I need income-driven repayment or forgiveness?
- Do I (or my co-signer) have good credit?
- Am I comfortable with a fixed repayment plan?
- Do I want to avoid high upfront fees?
If you answered yes to 2 or 4, it’s time to compare private student loan rates before choosing a Federal PLUS loan.
Final Thoughts: One Comparison Can Save Thousands
You wouldn’t buy a phone, car, or insurance plan without comparing prices. Student loans should be no different.
Federal PLUS loans are easy. But easy doesn’t always mean affordable.
In many cases, you could get a better rate with our student loans than a Federal PLUS loan¹ — and keep more money in your pocket after graduation.
Take five minutes. Compare your options. Your future self will thank you.
