Anyone know anything about My Rich Uncle ? I'm trying to decide between an alternate (private) loan versus a GRAD PLUS. It seems like there are better options out there than 8.5%.
private loans vs. grad plus
- Thread starter chef_NU
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I think they need to update their website, is what I think.chef_NU said:
It's a pretty site, don't get me wrong. But once you get past all the pretty graphics, here's the real deal: LIBOR + 3.00% margin. It's not clear to me if they're using the 1-mo or 3-mo LIBOR... oh, bankrate.com shows them using 3-mo LIBOR (and "as low as +2.00%", although their own website clearly says 3.00% margin). So, that means their current rate is actually 8.140%.
And, keep in mind that T.H.E. private loan is LIBOR + 2.75%, so it will always be cheaper than "myrichuncle".
And also keep in mind that based on current forecasts for 3-mo LIBOR, LIBOR + 3.00% will be about 8.7% by the time school starts in August. And if you take a look at today's stock market, everyone thinks inflation/rates are only going to climb.
But myrichuncle does seem to suggest they don't certify your cost of education through financial aid, and will send the funds directly to you? If that's the case, they'd be a great option if you're above your cost of education. If anyone goes through with it, please drop me an email and let me know.
Unless you're a big risk taker, I'd strongly suggest you take the 8.5% fixed GRAD plus all the way up to your education budget. More at my blog below.
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heech said:
The DOW dropped 200 points today on inflation worries. Apparently interest rates are almost definitely gonna climb for a while. 8.5% fixed sounds pretty good.
