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Request additional loans now??

Discussion in 'Financial Aid' started by polo8250, May 7, 2004.

  1. polo8250

    polo8250 Senior Member
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    Hi,

    I am going to probably go with T.H.E. Loans for my stafford loans but not sure who to go with for private loans (which I will probably need since the Cost of Attendance is greater than the 38500 that you can get thru Stafrod laons). Do I have to request additional loans now before school starts or when I can actually figure out exactly how much additional I need? I ask because since I am choosing a different lender than the school's preferred lender I have to fill out a request form and it also asks about additional loans (who you are going to choose for your lender and how much you are going to borrow).

    Do most students take out exactly what their cost of attendace is? I am clueless as this is my first time taking out loans.

    Thanks,
    Lisa :)
     
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  3. SoulRFlare

    SoulRFlare Senior Member
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    hey
    You should do it now, and only request the amount needed to round out your school's budget (i think this is all you can request anyway.) Why not go for THE private loans as well? without a co-signer, interest is 2.75% + LIBOR, and the loan can be paid over 20 years. Another good option is Need Access group, although you have to have a certain credit score to qualify for the 2.45% + LIBOR rate (the other rate is 3.65%!) The problem with need access is the interest ceiling is 25%! while it would probably never get that high, it's still scary (of course THE is a modest 18%)

    Here's how I did it: when I got my award letter, my school estimated my EFC as $26,000 (ouch!) So I called the finaid office, told them my parents weren't helping, and requested the max amount stafford. I still needed about 11,000, so they filled in this amount in the "outside loan" field. I got a new award letter reflecting these changes within a few days. They then told me to go to the THE site or Need Access and apply for the private loan--it takes about 24 hours for pre-approval. after that, you either wait for their letter/master promissory note, or fill it out online and print it. then you send it to your school so that they can fill it out.

    BTW...where are you going? private school?
    Good Luck!
     
  4. polo8250

    polo8250 Senior Member
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    Thanks for the advice SoulRFlare, I will look into THE loans for the private loans.. I also heard that Keybank is good but I have to look into the details.
    Would you suggest to automatically go with a co-signer? Does that always give you a better rate?

    I am going to NSU-COM, which is private but they have some state funding which gives me a slight break in tuition. To meet the cost of attendace I would probably have to take out 10000 in addtional loans but it seems like so much to me right now.

    Thanks again!
     
  5. SoulRFlare

    SoulRFlare Senior Member
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    Well, If you find someone who is willing to cosign, by all means. Just keep in mind that they have to pay if you default. I don't know if having a co-signer automatically give you a better rate with other loans, but some do require a co-signer if your credit score is lower than a certain amount. I really don't have any credit, so when I applied for the Need Access loan, I didn't need a co-signer but I only qualified for the 3.65% rate. needless to say, I cancelled and applied for THE instead (those were the only two that Case suggested.)

    $40,000 does seem like a lot now, but remember you will have a very good earning potential after your residency. I'm facing a $215,000+ debt, but i look at it this way: lots of ppl invest at least that much in their homes, and the return 10 or 15 years down the road isn't a fraction of the return my medical education will net. plus, you may be able to find a hospital that is willing to absorb some or all of your debt as a "signing bonus", epsecially if you're a specialist.
     

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