Private loans

[MiesVanDerMom]

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Can you take out private loans for more than the budget the school gives you? I doubt my school will approve enough loans to cover a nanny for my kids so I was hoping to take out an additional small private loan to make up the difference.

 

[Sol Rosenberg]

Yes, but the credit requirements are more strict and the interest rates are higher.

 

[rgerwin]

BOA med school loan!

 

[edubbs5]

The only private loan that you would have access to above and beyond what the school allows -would be a non-school certified loan, but like it was mentioned above - these loans are given at different interest rates and different terms - not like school loans where payments aren't required during your schooling.

 

[rgerwin]

That's sort of true. There are several maximizer loans out there. They do have higher interest rates and fees, depending on your credit/cosigner. However, they do NOT require payment during school, though they do accrue interest. You also cannot consolidate them with your federal loans, later.

 

[mshheaddoc]

You have to be careful b/c edubbs does have a point. There are different terms on private loans and although your experience may not have encounters, there are loans that do require quarterly or even monthly payments out there.

Thankfully most do not but if that person doesn't qualify for the loans that are the maximer loans then you might be stuck with those that have different terms. And by different terms, some require you to start payment in residency regardless. Just make sure to read the fine print 🙂

 

[rgerwin]

Here is the link http://www.bankofamerica.com/studentbanking/index.cfm?template=stb_bac_loans.

You would have to call and see about repayment. I know you get the usual 6 month post-graduation grace period, but I don't know about residency. However, if you have to have extra cash during school, then you do.

 

[mshheaddoc]

As I said, each loan company provides different terms. 🙂

Overall MiesVanderMom, the short answer is you shouldn't have any problems getting a loan during school that is above your COA. We've had to do this a few times and as long as your credit is above a 640ish you should have NO problems getting most loans.

 

[MiesVanDerMom]

I believe our credit is 700-something. Sounds like we won't starve to death 👍 Thank you for allaying my fears everyone 🙂

 

[dpmd]

You should check with your school (or schools, if you are deciding where to go). My school let people include child care in the cost of attendence (although the COA there is well above the maximum stafford limits). Having that in there might enhance your eligibility for institutional aid (if not free money at least perkins and other institutional loans-my school has one that is fixed at 8% has in school deferment, and a 6 month grace period, don't know what terms private loans have-had a partial merit scholarship).