Paying back private loans fast?

[Kaxa2000]

Would it be safe if I took out a loan and then payed it back over the summer to keep the variable interest rate from rising to far? I plan on taking a wells fargo loan, but people still think it's a bad idea.

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[mshheaddoc]

I"m not sure I understand what you're asking. You can't control the rate by paying part of it back. You can lower your "interest" payment if you pay part of it back but why take out a loan if you don't need to. You're going to pay at least a 1-2% fee plus depending on your credit you'll have a variable interest rate that will either reset quarterly or monthly.

 

[Kaxa2000]

I do need a loan desperately. I meant to ask would it be safe to pay off the private loan in full over the next summer? I don't plan on keeping it for a long time.

 

[Kaxa2000]

I'm going to pull one out....thanks for the help!

 

[mshheaddoc]

not necessarily. if you have excellent credit and a fairly long credit history, you can get a private loan with no origination fee.

Most people do not have excellent credit with a history as students at the age of 22 entering professional school which is the problem. If its not a graduate school private loan, you need a cosigner that is employed usually (at least that is how it USED to be, unless things changed in the past year). So grad school you're pretty safe on getting one, but you'll have to pay through the nose if your credit isn't stellar (high interest!).

As for the minimal fee, that is fantastic that you didn't get charge a fee. I hope they have changed the "fee" issue. Every other private loan I know of (all the ones I have and my husband have - I did quite a bit of research on this subject for 3rd and 4th year of med school) all charged an fee for their student loans. I did mispeak though, I think of it as an origination fee but usually its either an origination fee or a "repayment" fee which is charged when your account goes into repayment. If they don't hit you on the front end, sometimes the repayment fee is a bit higher than a 1% origination fee (which will end up with compound interest the same anyway!).

Also, health professional loans might be a factor of why there was a reduced/no fee as I know most all student loans for undergrad used charge you (at least they used to unless something changed in the past few months?).

I hope they have stopped with the fees, they were getting ridiculous.

 

[campusvitals]

but I will say that how quickly you pay back your loan has nothing to do with the interest rate that you pay. It can affect the amount of total interest you pay, but the rate will reset with the terms of your loan package.

Why do you need what is essentially a bridge loan for a few months if you don't mind me asking. It might help with some suggestions or advice.