Private Student Loans...Sallie Mae...HELP

[BasketNa'a]

Hello everyone, I am hoping some of you with experience/knowledge of private student loans will give me some useful insights. I am a Canadian Student going to a US MD School in the fall 2020 cycle.

I am planning to finance my studies on a private medical student loan from a US lender. I understand that Professional Student Lines of Credit (Lower interest rates), in combination with Canadian Government Student Loans (minuscule), is the popular means of financing for Canadians going abroad. I opted for the US loans because I have a stronger Co-signer in the US and wanted to avoid the uncertainty that comes with the volatile exchange rate these days.

Discover, Sallie Mae, and Wells Fargo are among the top lenders approved by my educational institution. Well’s Fargo has a 250K limit, which is not going to cover my full Cost of Attendance. Sallie Mae and Discover offer comparable loan advantages, including full school approved cost of attendance. Unfortunately, Discover does not have a co-signer release option, which keeps my co-signer on the hook for the entire life of the loan. Sallie Mae, on the other hand, has a release option, although with stringent requirements…and it is very important to me that I can release my co-signer as soon as I can. Therefore, I am leaning towards Sallie Mae…

I would appreciate it if you guys could share your experiences with any of these lenders and any advice that might help.

Are there any better alternatives that you suggest?

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[mmchick]

I don't think most pre-meds on here will have experience as an international student seeking private loans. Most pre-meds here are US citizens that typically use Fed Loans if any loans are needed. You're likely to get more comprehensive and reliable advice from your university's financial services or potential financial offices from med schools you're interested in (though less likely with the latter helping applicants who haven't even applied yet).

You might also consider reaching out to the Canadian gov student loan office to see if they have any further input as well.

Ultimately, with my advice taken with a grain of salt, it would probably be the smoothest situation if your co-signer is definitively comfortable with being a co-signer that bears the responsibility of the loan for an indefinite amount of time. If you prefer to go with US loans that require a co-signer in the uncertain future of whether you will be able to release them or pay off the loan yourself, you and that co-signer should accept that reality (the future is uncertain and they are bearing a massive responsibility by co-signing for hundreds of thousands of dollars worth of debt). You might take the volatile exchange rates to singularly sign on for loans through the first options you outlined if you and co-signer are both mutually uncomfortable with those risky terms.

 

[BasketNa'a]

Thank you. You are right, and I probably am better of moving the thread to the Medical student - MD forum, where there is a better chance that someone who has gone/is going through the process can see it. With regards to the financial aid at my school (I am accepted, class of 2024, btw), I have reached out and learned that they are legally prohibited from giving recommendations in favor of one over the other (other than laying the options.

The co-signer requirement is still going to be there for the Canadian Medical Student Line of Credit as well (no escaping that).

I wholly agree with your advice and opinion regarding the burden on the co-signer. It is a terrible position to put someone in, but as a non-US resident and with no means to pay for medical school, that is pretty much the only option at my disposal. All I can do is try my best to reduce the risk to them through insurance and other means and working hard and living responsibly...making the chance of failure and mistakes as close to zero as humanly possible...

Once again, thanks.

 

[mmchick]

Thank you. You are right, and I probably am better of moving the thread to the Medical student - MD forum, where there is a better chance that someone who has gone/is going through the process can see it. With regards to the financial aid at my school (I am accepted, class of 2024, btw), I have reached out and learned that they are legally prohibited from giving recommendations in favor of one over the other (other than laying the options.

The co-signer requirement is still going to be there for the Canadian Medical Student Line of Credit as well (no escaping that).

I wholly agree with your advice and opinion regarding the burden on the co-signer. It is a terrible position to put someone on, but as a non-US resident and with no means to pay for medical school, that is pretty much the only option at my disposal. All I can do try my best to reduce the risk to them through insurance and other means and working hard and living responsibly...making the chance of failure and mistakes as close to zero as humanly possible...

Once again, thanks.

Whoops sorry missed your first sentence. I think you should still have them list out the options which will allow you to make the better decision for yourself. If you have all the facts/figures from a legitimate source, that is ultimately more helpful and reflective of your unique position than someone else removed from the situation telling you what to do. Only you can decide what risk/figures you're comfortable with and what will work for your particular lifestyle.

I can appreciate the inevitability of the co-signer; what I meant more by ensuring they are comfortable with a possibility of indefinite risk is you should choose what loans work best for you in a financial sense (lowest interest, best repayment options and flexibility) vs making decisions to get them out from under the thumb quicker or mitigating their anxiety. Ultimately, these are loans you are intending on bearing full responsibility for, so a smoother mindset is approaching it at what makes the most financial sense vs what appeases the inevitability of a co-signer. If you can't comfort their anxieties, that is just an unfortunate reality, but just my two cents on approach perspectives on deciding what option is the best fit.

 

[BasketNa'a]

Whoops sorry missed your first sentence. I think you should still have them list out the options which will allow you to make the better decision for yourself. If you have all the facts/figures from a legitimate source, that is ultimately more helpful and reflective of your unique position than someone else removed from the situation telling you what to do. Only you can decide what risk/figures you're comfortable with and what will work for your particular lifestyle.

I can appreciate the inevitability of the co-signer; what I meant more by ensuring they are comfortable with a possibility of indefinite risk is you should choose what loans work best for you in a financial sense (lowest interest, best repayment options and flexibility) vs making decisions to get them out from under the thumb quicker or mitigating their anxiety. Ultimately, these are loans you are intending on bearing full responsibility for, so a smoother mindset is approaching it at what makes the most financial sense vs what appeases the inevitability of a co-signer. If you can't comfort their anxieties, that is just an unfortunate reality, but just my two cents on approach perspectives on deciding what option is the best fit.

You make great points. Thank you.