interest rate on private loans

[birdie]

What is a reasonable interest rate on private loans? Most that I have found are around 5%, and some go to 4.8% at lowest, but this still seems too high. Is this about the average?

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[ShaylaFinn]

You may want to check out T.H.E. at www.northstar.org
Alternative loans are based on the 3 month LIBOR + 2.5% or 2.7% (w/o a cosigner). This works out to 3.78% / 4.03% (no cosigner). Current LIBOR, T-Bill, Prime Rate, etc. are available at www.bankrate.com

Also Medloans (AAMC website) adverstises Alternative loans at prime + 0%, which would currently be 4.25%

Note that some of these rates may change July 1.

Hope that helps.

 

[birdie]

Are you talking about the T.H.E. private loans? If so, I qualified for 4.78% with excellent credit (with a cosigner). Is there another loan out there for 3.78%?

 

[ShaylaFinn]

I quoted you the rates I got online at www.northstar.org. T.H.E. Private loans were listed as the 3 month LIBOR+2.5% (w/cosigner). Both T.H.E. and Wall Street Journal quote the 3 month LIBOR (ending 6/30/03) as 1.28%. That's where I got 3.78%.

These rates are for private (alternative) loans taken while in med school. Undergrad and other program rates will prolly vary.