Grad PLUS 6.8%

[emeddo]

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http://www.nationalcity.com/personal/loans/student/Default.asp

Anyone checked out the above site for their loans. They promise a 6.8% Grad PLUS loan from disbursement which with even the 3% fee sounds like an awesome deal. They also say you can get a 3% rate reduction for their stafford loans. I am looking for feedback from people familiar with them.

 

[Raven Feather]

http://www.nationalcity.com/personal/loans/student/Default.asp

Anyone checked out the above site for their loans. They promise a 6.8% Grad PLUS loan from disbursement which with even the 3% fee sounds like an awesome deal. They also say you can get a 3% rate reduction for their stafford loans. I am looking for feedback from people familiar with them.

The catch to this is that in order for you to get that 6.8%, you must also make them the lender for the stafford loans you will be taking out otherwise it will be the fixed 8.5%. There are no origination fees for staffords and yes, they do offer rate reductions upon graduation/on-time payments. It still sounds good. The schools must accept either Great Lakes or AES as guarantors.

 

[theresa83]

The catch to this is that in order for you to get that 6.8%, you must also make them the lender for the stafford loans you will be taking out otherwise it will be the fixed 8.5%. There are no origination fees for staffords and yes, they do offer rate reductions upon graduation/on-time payments. It still sounds good. The schools must accept either Great Lakes or AES as guarantors.

where did you find this info about getting the 6.8% only if they are the lender for stafford loans as well? can you post a link?

 

[tsazmand]

another catch is that u cannot defer payments thru national city while ur in school, thus after ur loans is disbursed u must begin paying it back!!

 

[natsipoo]

another catch is that u cannot defer payments thru national city while ur in school, thus after ur loans is disbursed u must begin paying it back!!

Actually, under benefits it does say that payments can be deferred.
http://www.nationalcity.com/personal/loans/student/governmentgradplus.asp?SchoolState=New Jersey

 

[emeddo]

another catch is that u cannot defer payments thru national city while ur in school, thus after ur loans is disbursed u must begin paying it back!!

I talked to them on the phone the other day and this is not true, they are just like using any other bank to service your loan and must follow all of the stafford loan and Grad PLUS requirements which include in school deferments and hardship deferments. They even state this on their website, plus they told me that the MOHELA rate reduction still applies to the Grad PLUS loans so if you go to a Missouri School and use them once you enter repayment you get the 3% reduction which means once I enter repayment I will only be paying 3.8% interest on my grad PLUS loans. Sure they don't refund the 3% garuntee fee, but after two years of a lower interest rate even in school it makes up well for that fee. I plan on using them for both my stafford and my Grad PLUS loans.

 

[VJWDO]

Does the 3% guarantee fee get added to your total amount you borrow or does the fee get taken out of your dispersement? I am borrowing 10,000 so will I technically be borrowing 10,300 or will I only get 9,700 for dispersement? Any help would be appreciated I am a little confused.

 

[UserNameNeeded]

Does the 3% guarantee fee get added to your total amount you borrow or does the fee get taken out of your dispersement? I am borrowing 10,000 so will I technically be borrowing 10,300 or will I only get 9,700 for dispersement? Any help would be appreciated I am a little confused.

The fee is deducted from what you borrow. So if you want to borrow 10,000$, you'll be really getting 9,700$. But you are responsible for paying back with interest the 10,000$ even though you actually got 300$ less. Bastards.

 

[emeddo]

The fee is deducted from what you borrow. So if you want to borrow 10,000$, you'll be really getting 9,700$. But you are responsible for paying back with interest the 10,000$ even though you actually got 300$ less. Bastards.

That is not true for all schools. My school (KCOM) adds the fees to your budget so if they budget 10,000 you get 10,300 loaned to you. If your school isn't doing this than they aren't budgeting you correctly.

 

[Phantom_Eclipse]

Out of topic: I didnt wanna start another thread about Grad Plus, but when should I generally apply for this(before or after when I get my financial aid)? Thanx!

 

[speter33]

The catch to this is that in order for you to get that 6.8%, you must also make them the lender for the stafford loans you will be taking out otherwise it will be the fixed 8.5%. There are no origination fees for staffords and yes, they do offer rate reductions upon graduation/on-time payments. It still sounds good. The schools must accept either Great Lakes or AES as guarantors.

This sounds like good info. Can I ask you how you found out about it?

 

[emeddo]

This sounds like good info. Can I ask you how you found out about it?

Just give them a call and they will answer your questions. They had really nice people when I have called them the last two times. Who you use as your guarantors depends on what state you go to as far as what reduction benefits you get. Just call them and they can explain it. I'm just glad I did my research and didn't go with whatever my school reccomends like everyone else. The lazy way out of this would have cost me thousands of dollars more like the rest of my class will be paying.

 

[speter33]

The catch to this is that in order for you to get that 6.8%, you must also make them the lender for the stafford loans you will be taking out otherwise it will be the fixed 8.5%. ......

This is not true. I called them twice today. They said although they preferred if you took out the Stafford loans with them, it's not a requirement. So that's not the catch. I haven't found a catch yet. But they make you pay the 3% origination fee that T.H.E. refunds to you. Still worth it.

 

[It'sElectric]

Out of topic: I didnt wanna start another thread about Grad Plus, but when should I generally apply for this(before or after when I get my financial aid)? Thanx!

You should apply for it now if you do indeed need the extra money.

 

[emeddo]

This is not true. I called them twice today. They said although they preferred if you took out the Stafford loans with them, it's not a requirement. So that's not the catch. I haven't found a catch yet. But they make you pay the 3% origination fee that T.H.E. refunds to you. Still worth it.

Yeah, your saving 1.8% a year in interest. It doesn't take a math genuis to figure out you get your 3% back in less than 2 year and depending on how long before your repayment you then are saving another 10+ percent before you get to repayment. THE doesn't even start giving you reductions till you enter repayment.