Question about private student loans

[NMLobo]

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I'm going to be starting my first year of med school soon. I've gotten finanical aid established through the university. However, I've been looking into getting a loan through a private lender. One place I've checked out is collegeloansite.com and was wondering if anyone has borrowed from this private lender. The loan is credit based and offers deferment until after graduation and even residency. I did the preapplication and they are offering me a 12.20% APR while in deferment and a 9.48% APR during repayment. I have good credit so I'm hopint this is a good rate. Having not done this before and having no basis, I was wondering if this is a reasonable interest rate on $10,000. They are also charging a $990 origination fee on top of the amount I want to borrow. Is there any other lenders who offer deferment that may have lower interest rates? Also, does borrowing from a private lender based on credit affect the federal loans given through the school? Any advice and direction will be much appreciated. Thanks! 😀

 

[ShyRem]

OH MY GOD!!!!!!!!!!!!!!!!!! that loan rate is OUTRAGEOUS!!!!!!!!!!!!!!!!!!!!

is this above the COA allowed by your school? If so then look into the GradPLUS loan - it's 8.5% flat rate WAAAAY better than 12.2%!

If this is above your COA, I think jbone got something called a "maximizer loan" at Bank of America... look up his posts for more information. But I think 12.2% is *way* out of line!

 

[ShyRem]

OH- and the origination fee? That's like 9%. Most places, if you have good credit, will only charge you 3%. 9% is usually reserved for credit risks (i.e. poor credit). If you are pretty sure your credit rating should be "good", then make SURE you look up your credit report and double-check everything. You are entitled to one free credit report every 12 months at www.annualcreditreport.com

 

[NMLobo]

Thanks for the reply. I wasn't aware that it was that high. 😱 That's why I'm so glad I have this site as a resource. I'll look into other options. Thanks again! 😀