LOAN help PLEEEAAASE!!!

[ilostmyspacebar]

---

Members do not see this ad.

I just got my award letter (UOP pharmacy school) and i'm getting 8500 (stafford loan sub) and 22500 (unsub stafford loan). So i'll need to take out around 13000 in private loans to cover hte rest of tuition/expenses.

do i have to shop around for a stafford lender or is that taken care of already?

also, i'm looking at private loan sites but i sitll have no clue what's going on. I also got, along w/ my award letter, sometimes that says that i can get the
"professional student PLUS loan" from the govt. do i apply for that loan through private lenders????

thanks in advance =)

 

[FDoRoML]

Hey, take a deep breath. I know it can be maddening not just to see how much you'll be borrowing but also to decipher what the heck you're supposed to do next.

First, pick your lender for Stafford loans. I know many here use THE (as do I) but there are other lenders who offer similarly good terms. What you want to look for is ZERO origination fees and good repayment terms (as in, deferment offered, forbearance offered, bonus discount upon subsequent repayments, etc). One thing I'd recommend you do is go to a site like THE and lok at their terms. THE (Northstar) here Use them to compare with other lenders (they actually have a useful chart for this purpose-- I'll attach it as a pdf).

If you have kick-@ss credit you might be able to beat the rate that's offered by the Grad PLUS loan... but it offers a few advantages. It's a set rate (no surprise increases based on the fed, or on your credit situation, as with private loans that can go up to 18%!!). Also, it can be consolidated along with your other federal loans later (stafford)... a great feature for repayment or deferment times. The PLUS loan is taken out through private lenders, as is the stafford. The only thing about both programs is that they are gov't subsidized, so the private lenders MUST abide by the gov't set terms. Some get around things like the origination fee for the PLUS by offering a "bonus" after the loan is disbursed (I think THE does this, so the 3% fee turns into 0% anyway).

I know, it's all confusing at this stage. Shop around. Your school will probably have "preferred" lenders but that doesn't mean you HAVE to use them unless they specifically say you MUST use one of their recommended lenders. I don't know many schools that do this, but just be sure of that.

If you have questions, PM me.
FD

 

[UserNameNeeded]

Also, it can be consolidated along with your other federal loans later (stafford)... a great feature for repayment or deferment times.

So are you saying if someone gets a private or state educational loan instead of a Graduate Plus loan (to help with difference between cost minus Stafford loans), getting deferment on the Stafford loans is harder?

 

[FDoRoML]

No, you misunderstand. Getting deferrment on Stafford is a piece of cake for people going into residency or research years. It's the WAY you can consolidate that matters... so, if you have Stafford and PLUS loans only (all fed programs), they can be consolidated together and under a federally controlled rate, etc.

If you have private (alt) loans, of course you can also get deferrment for them, too, but the interest rate might get out of hand and end up costing you more in the long run.

I like the idea of a controlled interest rate and the ability to consolidate into one loan for ease of payment and deferrment, etc. In terms of fewer steps to take and fewer things to worry about keeping up on. I figure I'll have a lot on my mind anyway, going into residency, etc.

I could get an alt loan from a private lender at a really good rate b/c of my credit, but I'm choosing the PLUS instead because of the ability to consolidate it along with the other fed loans. Clean and easy. It's just me, but I know a lot of educational loan specialists at lenders are also recommending this (and they REALLY have a conflict of interest b/c it turns you away from their own private loans). Still a personal choice for everyone...

Oh, and I will probably have to take out a small private loan (above the student budget) to cover additional expenses the first year anyway, so I don't want more than one private loan with no control over the interest rate should they decide to make my life difficult later on. I'm a little t'd about having to use that loan anyway, but we do what we have to do to survive. It's all good in the end anyway. 🙂

 

[UserNameNeeded]

Oh, I see. Texas has a fixed-rate, simple interest loan (5.25% with 3% origination fee) program for medical students. I'm considering taking that over the unsubsidized Stafford loan.

 

[FDoRoML]

Wow. I knew there was a reason I should be a Tx resident. MD and PA show me no love. 🙄

That sounds like a great deal! Much better than other loans... but if you use it to replace your unsub stafford, do you still have to borrow alternate loans, or are you covered for the full cost of attendance? If you still need to borrow more it may make more sense to have the Tx loan replace all of the alt loan and as much of the unsub stafford as you can, instead.

 

[UserNameNeeded]

If you still need to borrow more it may make more sense to have the Tx loan replace all of the alt loan and as much of the unsub stafford as you can, instead.

Yeah, that's exactly what I was thinking I would do. It seems like the best going rate for interest for next year (aside from the Stafford) is between 7-8% thanks to all the interest rate hikes. I really wish there were more low-interest loans available for medical students.

 

[puncho]

Hey FDoRoML, thanks for the info. I just had a question I was wondering if you could help clarify.

So the PLUS loan has a 3% originination fee. THE (and possibly other lenders) would reduce that to zero?

The rate (8.5%) is pretty high so I guess I should shop around for lenders that will help lower this...

Thanks!

 

[FDoRoML]

Oh, so, I think the THE Plus loan works this way-- there is a 3% origination fee that the fed sets (as well as the interest rate). THE will credit your loan back with that 3% within 6 months of you taking it out provided there is still an unpaid loan balance (and their would be unless you hit the lottery or dropped out of school and got refunds of tuition or something crazy like that).

The interest rate on the Plus loan will not change between lenders because (like the stafford) it is set by the feds. The best way to "get a lower rate" on the Plus loan is to find lenders that offer good repayment bonuses. Only some of the private loans through each lender could dip the interest rate lower... but again, you're banking on the federal rate not continuing to increase over the time you have the loan. Say you get 7%... it could *easily* go up to 9% or more over the next 4-7 years... considering the rates just went up two points (er, 2%) in less than a year. The economy isn't too stable right now so it's kind of a gamble whether they'll stabilize or continue to climb. I suspect they are not topped off yet... but we'll see what the next presidency brings us... war... other economy busters, etc.

 

[miggy]

Hello! Please help me. Is anyone here willing to help me in applying in a loan for international students? I need a U.S. citizen to be my cosigner for the loan I am applying for. I do not know anyone from the US who can be my cosigner. Where can I find cosigners who can help me? Please help me.

 

[migs03]

Sorry...
I'll just repost it without shouting...

Hello! Please help me. Is anyone here willing to help me in applying in a loan for international students? I need a U.S. citizen to be my cosigner for the loan I am applying for. I do not know anyone from the US who can be my cosigner. Where can I find cosigners who can help me? Please help me.

 

[Grasshoper]

What do you think of Student Loan Xpress? Have you heard of this company?
They provide a 2% rate reduction for the Grad Plus Loan once your begin repayment. T.H.E. only offers 1.3%. Is this difference really that important?