I know that there are many variables that come in to play for this. In general though, what have you guys found is the most beneficial route to take for PT school loans? Sallie Mae, Credit Unions, banks or just using the available federal loans? Any other suggestions? So many numbers....
Loans: Which is the most inexpensive option?
- Thread starter Dodds08
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I have been racking my brain with this as well. I haven't had to do loans before so I didn't know what was a good interest rate and what wasn't. But the federal loans, unfortunately, are rising. They won't offer you a subsidized loan for grad school, which means the interest will accumulate while you are in school :/. It adds up so I was advised to start paying it while I'm in school (the interest). And the rates keep rising. For the unsubsidized loan, the interest is 6.21% (it was 5.41%) and the grad plus loan (offered for public schools) is 7.21% where is was 6.41%. This is terrible. I didn't really have a choice, so I figured I would accept it for the first year and figure out a budget for the next two based on my first year, so I can take out less and pay interest the for those years. If you can find a loan that doesn't accumulate till you graduate, I don't know of any that do personally, then jump on that. And let us know if you find anything!
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Federal loans generally give the lowest available non-variable interest rate.
Another thing to think about is that government programs such as "pay as you earn" and "public service loan forgiveness" are only eligible on federal loans. Student loan debt is a huge issue in politics right now and I suspect more programs will come out to help students manage their debt; however, they will generally only apply to federal loans.
Always look to federal loans first. If you have financial struggles in the future, they are very forgiving and the interest rates are non-variable and generally lower than other sources. Look to private loans only as a very last resort in a time of desperation.
There is endless information available on this subject across a wide range of reputable websites. You would get a lot more information a lot faster if you searched for yourself.
There is endless information available on this subject across a wide range of reputable websites. You would get a lot more information a lot faster if you searched for yourself.
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Federal loans are the way to go. Even though the interest rates are high...mine are at 6.8% and 7.9%. They give you a .25% discount (whoopie) for setting your loans on auto payment. As other have mentioned, the big reason I have not switched to consolidation, is that the federal loans come with lots of options and programs if you ever need them.
For example: I am currently paying on a standard 10 year repayment. And paying more than the minimum payment. 1) If I want to skip a few months I can (because I am ahead on paying) 2) If I ever want to switch to the 30 year plan I can, so that my payments are lower. Which could come in handy if your expenses go up. If I switch to the 30 year, I can always switch back to the 10 or just make bigger payments 3) They offer forbearance and deferment periods that you can use (I think just once) of 6 months if you need to take a break from paying. Not the most idea, as interest will keep accruing, but if you can't pay for whatever reason, like you lose your job, medical bills, having kids etc
For example: I am currently paying on a standard 10 year repayment. And paying more than the minimum payment. 1) If I want to skip a few months I can (because I am ahead on paying) 2) If I ever want to switch to the 30 year plan I can, so that my payments are lower. Which could come in handy if your expenses go up. If I switch to the 30 year, I can always switch back to the 10 or just make bigger payments 3) They offer forbearance and deferment periods that you can use (I think just once) of 6 months if you need to take a break from paying. Not the most idea, as interest will keep accruing, but if you can't pay for whatever reason, like you lose your job, medical bills, having kids etc
