Loans

[samiam100]

So temple is finally getting their act together and sending out financial aide information. I was just wondering what type of loans people have been getting. You don't have to be going to temple, because i am just curious to see what type of loans are out there.

Thanks

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[heybrother]

The vast majority of people are going to take a 6.8% Stafford loan and then a 7.9% grad plus on top of it. Some people are going to try and get creative and take private loans from banks. I don't think you'll see any real difference in the terms up front, but when you need flexibility at the end of the loan I sure hope they have all the protections the federal loans have. Last of all, some people are going to trade a tiny amount of interest on a private loan for having their parents co-sign their loans. The only idea that is worse would be seeking out a variable rate.

There's this strange idea that pervades this forum that 6.8% is an exorbitant amount of interest. It is not historically and its certainly not considering that we have no job, no income, no history and no assets. Minimize what you borrow, live frugally, and I'll stop preaching now.

 

[pod101]

There's this strange idea that pervades this forum that 6.8% is an exorbitant amount of interest. It is not historically and its certainly not considering that we have no job, no income, no history and no assets

6.8% student loans vs. sticking my savings in the bank 0.99%, CD 2%, bonds, commodities...damn why can't my investments produce 6.8% interest? If you consider inflation, my money actually loses value sitting in a bank for over a year.

 

[jonod1107]

The vast majority of people are going to take a 6.8% Stafford loan and then a 7.9% grad plus on top of it. Some people are going to try and get creative and take private loans from banks. I don't think you'll see any real difference in the terms up front, but when you need flexibility at the end of the loan I sure hope they have all the protections the federal loans have. Last of all, some people are going to trade a tiny amount of interest on a private loan for having their parents co-sign their loans. The only idea that is worse would be seeking out a variable rate.

There's this strange idea that pervades this forum that 6.8% is an exorbitant amount of interest. It is not historically and its certainly not considering that we have no job, no income, no history and no assets. Minimize what you borrow, live frugally, and I'll stop preaching now.

I think 6.8% and 7.9% is pretty high when you consider that pre-2006, the rate was around 2.5%. Also, fix rate mortgages and other loans are at an all time low.

I was actually thinking about having my parents take out a home equity loan (aka second mortgage) on one of their rental properties and use that to pay tuition. Of course, only do this if you are dead serious about pod school and have the means.

 

[diabeticfootdr]

Sad that a big bank can borrow the same government money at a fraction of the interest rate.

 

[samiam100]

Is the maximum amount for the perkins loan 6,000? Also, is anybody trying to get a HSPL loan?

 

[rushrhees]

6.8% student loans vs. sticking my savings in the bank 0.99%, CD 2%, bonds, commodities...damn why can't my investments produce 6.8% interest? If you consider inflation, my money actually loses value sitting in a bank for over a year.

Using the Liz Lemon investment strategy one will never outpace inflation. This is not our parents CD's where they could earn 10% in a depository account. One does not need too much to start real investments. There are many ways that you can get a good return without huge sums to invest

Sad that a big bank can borrow the same government money at a fraction of the interest rate.

As of now the fed discount rate is 0.75%, would be nice to be able to get student loans from the Fed.

 

[zdlamkin8195]

Sad that a big bank can borrow the same government money at a fraction of the interest rate.