It does seem to be a good deal once you enter repayment. However, I think there are three things that make me wary of them. First, in going through their terms, I notice that they say they WILL sell your loans to someone else. Though the terms and rates may not change if they sell, I wonder if I would like to deal with the new owner of my loans. Second, the interest rate deduction begins at repayment. This generally means that your interest rate during deferment, i.e. while you're in school (and possibly residency), is the non-discount rate, currently 6.8% with Staffords. Third, they did not disclose all of their terms, which always makes me skeptical. Two big factors: how do they capitalize interest? If they do it quarterly, then you're paying interest on top of interest! But if they do it only once, after deferment, then you might be looking at a good deal. and, what strings are attached to that 2% discount?
