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Originally Posted by CorporateFatCat
What's IBR?
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IBR = income based repayment plan. Even if you owe like $2-3k/month in student loans as a new grad based on your borrowed amount on even an extended 25 yr repayment schedule, IBR it caps the monthly repayment based on your income (something between 10-15%. I can't keep track of which it is at the moment). When you don't have a high starting income, only needing to pay like $800/month instead of the $2-3k is a lifesaver.
Quote:
Originally Posted by CorporateFatCat
Repayments are not required while in school, you're still accruing interest though.
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Even with unsubsidized loans, you don't need to start repayment until 6 months after you graduate. I'm not sure where you're getting the impression that you do... Cause... I'd be super f***ed if that was the case, along with a vast majority of other vet students. Actually, that would mean I've already defaulted. Please tell me that's not the case.
Quote:
Originally Posted by CorporateFatCat
But if the higher-end interest rate is 7.25%, does that sound like a good alternative to federal loans?
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I don't know enough about private loans to know how much their interest rates fluctuate, so I have no idea if it's better or worse than federal loans once you go into repayment. I could be totally wrong, but my impression was that with private loans, the interest rate isn't fixed? It could be totally out of ignorance though. I've always heard the mantra, DON'T DO PRIVATE LOANS, and never thought about it. Even if it's at a fixed 7.25%, I'm not sure that the benefit outweighs the risks for me... with the loss of IBR and possible forgiveness