Private Loans?

Discussion in 'Pharmacy' started by pharmerjohn, 05.20.14.

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  1. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    With Federal Stafford loans at 6.8% and Grad Plus at 7.9%, has anyone had any lucky getting a private loan that can compete with those interest rates? With credits the way they are at this point in time, beating the 6.8% might be a challenge, but what about beating out the 7.9% from Grad Plus?
     
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  3. oldstock

    oldstock Banned Banned

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    I would apply and use those 0% credit cards :) JK

    well, seriously, if you have to apply for private loans, you have to have excellent credit and maybe also a cosigner as you can work full time in pharmacy school. If you have a house and excellent credit, I would refinance to get the money to pay for pharmacy school (and you will probably still get cheap interest at this time). Otherwise, you should thank that you can still borrow those 7.9% Grad Plus to pay for your pharmacy tuition :)
     
  4. Corytrade

    Corytrade 2+ Year Member

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    Discover is offering a pretty competitive rate if you have a killer credit score. Lowest rate is 6.74%, no origination fees, 9 months grace period, 1% cash back reward for 3.0 GPA, 0.25% debit discount, and 20 year repayment.
     
  5. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    Well, just casting my net and see what else everyone is getting. I happen to in fact have very good credit, so I will report back on my own endeavor of attempting to score a competitive private loan. And no, none of those 0% for 1 year kind of BS, because we all know how well that turned out for people who fell for tricks like those with the sub-prime mortgage mess.
     
  6. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    Ya, I saw the Discover one, and I think I qualify for it. One thing though, is it a variable interest rate? I'll definitely look deeper into it later this week. Thanks for bringing it up.

    Anyone else have luck with any other private loans?
     
  7. oldstock

    oldstock Banned Banned

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    I was just kidding about those 0% credit cards bro :)

    Keep us updated !!
     
  8. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    I know. Will do. :)

    In the mean time, keep it coming please. I don't want to kick every dog and chase every rabbit if some else's already done it.
     
  9. trailerpark

    trailerpark 2+ Year Member

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    My credit card is 7.9%. How ridiculous is it that grad plus is also 7.9%. School loan interest rates should be a lot less for students!!!! Where is the change Obama promised!?
     
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  10. Corytrade

    Corytrade 2+ Year Member

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    That is the fixed rate. The variable rate is at 3.25%. I actually looked up a lot of prime rate predictors, to see how long it would take the variable rate to jump over the fixed rate, but I couldn't find anything substantial. The prime rate has been 3.25% for six years! So anyone that had the courage to choose the variable rate six years ago has been paying a lot less than those that choose the prime rate.
     
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  11. Corytrade

    Corytrade 2+ Year Member

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    It came in the form of unsubsidizing grad school loans :(
     
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  12. BMBiology

    BMBiology temporarily banned~! 10+ Year Member

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    The problem is that the federal government gives loans to anyone and everyone so the rate must be high to cover those who eventually will default.
     
  13. oldstock

    oldstock Banned Banned

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    Nah, they were giving out subsidized and unsub Stafford with low interest alright for decades in the past. They just took off the subsidized Stafford loan for grad / professional students in 2012.

    The truth is the US is broke and they know that they could not keep printing money forever :)
     
  14. oldstock

    oldstock Banned Banned

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    If you keep on complaining, Grad Plus loans would probably be the only thing that is still available to grad / professional students :)
     
  15. trailerpark

    trailerpark 2+ Year Member

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    Can't we borrow more from China to lower student loan interest rates, what's another few billion when we owe trillions.
     
  16. oldstock

    oldstock Banned Banned

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    the US surely borrows more from China for what purpose I do not know but I am sure it is not to lower the interest on student loans. Why should our government do that ??
     
  17. owlegrad

    owlegrad Uncontrollable Sarcasm Machine Staff Member SDN Administrator 7+ Year Member

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    LOL sounds like what my dad would say. "Keep crying and I will give you something to cry about!" I doubt complaining about it is going to make Stafford loans go away.
     
  18. oldstock

    oldstock Banned Banned

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    so I would take that you and your dad are not close :) JK
     
  19. msweph

    msweph 2+ Year Member

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    How easy is it for prime to jump up?? I
    didn't look into any of these loans when I was in school because the subsidized loan
    s still existed. My loans are paid off, but my spouse is still in medical school and I think the interest rate is 6.9% all unsubsidized. Is there any disadvantage to taking a discover loan over the typical student loan?
     
  20. Corytrade

    Corytrade 2+ Year Member

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    The Fed sets the prime rate. It has been really low to try and boost the economy since 2008. It goes up to fight inflation. Right now the Fed is saying they won't touch the rate for the rest of the year, but expect it to start going up next year possibly. However, a 10 year loan will be very hard to predict, because if the Fed raises the rate by 0.5% a year, that could push you up the 8.5% mark by the end of your loan. However, most of the principal would be paid off by then, and it may still cost you less in the long run. So it is incredibly difficult to predict if it is worth it to gamble on the prime rate. Just be careful, the prime rate was at 9.5% in 2000, and at 8.25% in 2006. It sounds bad, but you almost want the economy to stay in the dumps if you are going to pick a variable loan.

    A disadvantage to the Discover loan would be the difficulty of trying to get an IBR (Income Base Repayment) plan, or any type of loan forgiveness, if needed. You would have to negotiate with them, and I don't know how flexible they are. Also, you can only get a really low rate if you have a really good credit score, or you can find a co-signer.
     
    Last edited: 05.21.14
  21. jafx

    jafx 2+ Year Member

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    This sarcasm made me smile. :)

    Obviously the change has come! We've had reverse immigration for years! Record numbers of US Citizens are renouncing their citizenship. THE DREAM IS REAL!!!
     
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  22. oldstock

    oldstock Banned Banned

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    the beginning of the USSA !! :)
     
  23. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    If you're borrowing less than $30K, the variable rate is probably the way to go. Anything more than 30K and you'll be taking on too much of a risk. I'm thinking of going with the Stafford and replacing the Grad Plus with a variable loan, since I don't plan on borrowing more than $150K. I'll have to shop around a bit and see what I get before I make my decision. Are you thinking of doing the same?
     
  24. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    Yup, it ultimately comes down to the Fed and whether they choose to lower or raise interest rates.

    If you're going with a private loan, IBR is probably not going to happen, and loan forgiveness is even more unlikely. That's why it's probably best to get only a relatively small amount if you're going to go with private loans. Doing so will allow you to pay off the small private loan first before you tackle your Federal Stafford.
     
  25. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    Ok, so I did some tires kicking, and here's what I came up with so far:

    Wells Fargo
    Fixed Rate: 6.74% - interests accrue while in school.
    Variable Rate: 3.5%, with a ceiling of 18% depending on prime rate
    Grace Period: 6 months after graduation - 10 years repayment

    Application Fees: 0
    Origination Fees: 0

    Discover
    Fixed Rate: 6.79% - interests accrue while in school.
    Variable Rate: 3.25%, with a ceiling of 18% depending on prime rate
    Grace Period: 9 months after graduation - 20 years repayment
    Application fees: 0
    Origination fees: 0
    Perks: GPA of 3.0+ gets 1% back from principal balance of loan per quarter/semester in the form of a check


    Bank of America - No longer offer student loans

    Chase - No longer offer student loans

    So far, the Discover student loan seems to be the better option for a variable loan, as for fixed rates, both loans beat out the Grad Plus' 7.9%. I will continue to kick more tires and will report back if anything else comes up. In the mean time, please keep the info coming if you found something better.
     
    oldstock likes this.
  26. radio frequency

    radio frequency 2+ Year Member

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    I thought the federal unsubsidized loans (not grad plus) for grad students were at 5.41% right now. Is that not still true?
     
  27. Ackj

    Ackj 7+ Year Member

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    I'm a 2013 grad, only took the federal loans, no grad plus. All were 6.8%, although I got a discount down to 6.55% by enrolling in auto-debit.

    I'm actually looking into refinancing with SoFi, still getting all the details about it, but it seems pretty reasonable. The major drawback to any non-federal loan is that you likley won't have the advantages of IBR or Public Health forgiveness.
     
  28. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    I wish it's 5.41%. It's been 6.8% for a while now, I think... It's worse than the mortgage rates. It makes no sense that people who want to buy a large house that they may not be able to afford can get 3.5-4% interests on a mortgage, but students investing in their futures pay 6.8-7.9%.
     
  29. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    Please keep us updated with the SoFi refinancing. I'm very curious about that myself. Seems like a smart move if you plan to pay off your loan quickly.
     
  30. oldstock

    oldstock Banned Banned

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    my guess : they probably see higher risks in student loans now than in mortgage as the general job market is still pathetic. The thing is, if a person is default on his mortgage, the bank can foreclose the house and auction it to get their money back. Moreover, the US is more broke by the days that gov cannot to subsidize and/or afford to write off student loan debts anymore like in the past. The next thing we probably see is that less and less federal loans/grants are available to college students and/or loans with higher and higher interests.

    This trend on student loans, if continued, signals a bomb will explode some time in the future imho.
    :boom::boom:
     
  31. radio frequency

    radio frequency 2+ Year Member

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    Are you sure? Direct Loans appear to be 5.4%. http://www.direct.ed.gov/student.html
     
  32. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    True, I've thought of that, but I just wanted to rant anyway. Unfortunately though, it'll most likely end up hurting our nation's overall level of education.
     
  33. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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  34. radio frequency

    radio frequency 2+ Year Member

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    That site is the official Direct Loans site. I'm pretty sure it's not wrong.
     
  35. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    I'm aware it's the official site, but that's just not the rate we're getting. When I log in, it shows 6.8%... Plus, other people on here are getting 6.8% as well. Weird. o_O
     
  36. radio frequency

    radio frequency 2+ Year Member

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    That's very weird. I was offered 5.41% plus their (dumb) origination fee...
     
  37. sjv

    sjv SDN Moderator 2+ Year Member

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    The 2014-2015 interest rates for federal student loans have been announced: 6.21% for Direct Unsubsidized & 7.21% for Direct Grad PLUS Loans.
     
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  38. Rockinacoustic

    Rockinacoustic 7+ Year Member

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    Glad I graduate next year...
     
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  39. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    Maybe it's a regional thing? Still, that doesn't make any sense... Origination fees are inescapable for these loans. The good thing about the private loans mentioned above is that they have zero origination/initiation fees.
     
  40. Ackj

    Ackj 7+ Year Member

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    I am fairly certain that whatever rate you get when the loan is disbursed, that's the rate you are locked into, for better or worse. So that might have been something for loans disbursed for 2013-14. All of mine (fall '09-spring '13) are 6.8%, however.
     
  41. radio frequency

    radio frequency 2+ Year Member

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    The loans through spring 2013 were at 6.8%. The loans for fall 2013 - spring 2014 should have been 5.41%. Starting in July 2014, they'll be 6.2%, I believe.

    The rates are set in advance of the school year; you should know exactly what rate you'll be getting for upcoming year before the school year begins.
     
  42. pharmerjohn

    pharmerjohn Working on a Dream 2+ Year Member

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    It's true that the rate is locked for the year, but the differences in rates among students as well as what's listed on the website is where the confusion's at. It could be that rates change quarterly, and so perhaps the rates vary slightly based on when the loan is disbursed? Just my guess.
     
  43. jhan91

    jhan91

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    Did you end up deciding what to do?
    I'm in the process of figuring out Grad PLUS Loan vs. Private loan and was wondering if you had any tips?
     
  44. Klueril

    Klueril 5+ Year Member

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    pharmerjohn, great points man, very helpful
     
  45. molyhelp

    molyhelp

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    Folks, the keyword credit showed up 22 times in many posts and that keyword credit brought out my heart to share this with you. I have been protecting myself with California State Law called Security Freeze for over 8 years. My credit is excellently protected by State Law. We all discuss into very great details about saving money based on credit. We need to protect our already good credit. How? Do "Security Freeze" (State Law in over 48 states now.)

    I wonder if any fellow pharmacy friends protected with Security Freeze already. Why? It took me a while to convince my dearest 7 friends over 8 years so far to protect themselves. Still, many others just listen briefly and never did the protection. I am just curious who else heard about the protection and still not taking action. To me, that is the same as:
    Knowing we will have summer rain on muddy road,
    You parked your car and
    Even after I warned you about messy mess of mud splashing inside car and causing everything to be dirty, you still leave your car windows open. Would you close your windows or leave windows open?

    Sometimes, I wonder, I am the crazy one or perhaps others?

    Anyway, how many of you got Security Freeze done to protect your already good credit records?
     
    Last edited: 07.09.14
  46. oldstock

    oldstock Banned Banned

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    thanks for the info. Before I google it, could you give us some more info ?? Thanks again :)
     
  47. molyhelp

    molyhelp

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    Fact 1: State law.
    Fact 2: I benefit nothing from this State law.
    Fact 3: The model is similar to ATM card.
    If you lose ATM card and I found it, I do not know your PIN, I can not get CASH (please forget the minor point of using as credit mode.)
    NO ONE CAN ASK YOU TO WRITE DOWN AND HAND OVER YOUR SECRET PIN. Your ATM PIN is yours and yours only. Agree so far? Let's continue.....

    You have now exposed your SOCIAL SECURITY NUMBER and Driver's License Number everywhere (think about places that you gave those 2 pieces of information: old job application, doctor's office, cell phone sellers....) Agree so far? Let's continue...

    Just those 2 pieces of information are enough for crook to make fake ID and open credit account in your name.

    State law goes one step above all that. After you FREEZE your credit accounts, you will have new secret PIN code which you will NEVER NEVER NEVER give to anyone. The NEW SECRET PIN CODE is yours and yours only. Therefore, even if the crook has fake ID with his (or her) face and your Driver's License Number and then also has your Social Security Number, the crook can not open new credit account because the crook will never have your NEW SECRET PIN CODE (which you will have after your freeze your credit files at three bureaus: TransUnion, Experian, Equifax.)

    Your credit records are clean now? Protect it so it will stay clean forever.
    Let's see the picture: The inside of your car is clean now? Protect it so it will stay clean forever.
    How do I protect the clean condition inside of my car? Roll up the windows and lock the car.
    How do I protect the clean condition inside my credit record? do Security Freeze (This is State Law for anyone, this is not a service.)

    Anyway, how many of you got Security Freeze done to protect your already good credit records?
     
  48. trailerpark

    trailerpark 2+ Year Member

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    Every 4 months I check my credit with one of the 3 for free at www.annualcreditreport.com. Do I really need the magic pin number?
     
  49. molyhelp

    molyhelp

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    Very good that you already knew about the free reports. You are already ahead of the game compared to many people.

    Every 4 months, I check the inside of my car. If it is dirty with mud, I will clean it.
    Then, I will leave the windows open. 4 months later, I will check the inside of my car. Then...

    Every 4 months, I check the inside of my car. If it is dirty with mud, I will clean it.
    Then, I will leave the windows open. 4 months later, I will check the inside of my car. Then...

    Every 4 months, I check the inside of my car. If it is dirty with mud, I will clean it.
    Then, I will leave the windows open. 4 months later, I will check the inside of my car. Then...

    Repeat for the rest of my life....Or,

    Roll up the windows before the first messy mess, keep the KEY TO MYSELF.

    Or, do Security Freeze and you are protected for the rest of your life. One setup, done.
    Yes, you will need the magic PIN NUMBER, which you will NEVER NEVER NEVER give to creditor when you apply for credit account, even if they ask.
     
  50. trailerpark

    trailerpark 2+ Year Member

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    How long is the pin code? You have a good you tube video how to get one? steps?
     
  51. molyhelp

    molyhelp

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    Pin code is under 10 digits.
    Youtube video is not available yet.

    Steps:
    Step 1: Read about Security Freeze at Government's website:
    http://www.consumer.ftc.gov/articles/0279-extended-fraud-alerts-and-credit-freezes

    Or Read your state's Security Freeze at:
    http://consumersunion.org/research/security-freeze/

    Or Read the law of California just for extra assurance:
    CIVIL CODE SECTION 1785.10-1785.19.5
    http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=01001-02000&file=1785.10-1785.19.5

    Or Ask the credit bureaus:
    Equifax 1-800-525-6285
    Experian 1-888-397-3742
    TransUnion 1-800-680-7289


    or Google keyword: SECURITY FREEZE.
    or Read Huffington Post: http://www.huffingtonpost.com/jason-alderman/should-you-freeze-your-cr_b_3193577.html

    Step 2: www.transunion.com/freeze
    Step 3: www.experian.com/consumer/security_freeze.html
    Step 4: https://www.freeze.equifax.com/Freeze/jsp/SFF_PersonalIDInfo.jsp

    Anyway, how many of you got Security Freeze done to protect your already good credit records?
     
    HandsomeRob likes this.

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