residency relocation loans

[abc19]

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anyone going to take them out or know anything in more detail about them?


they scare me but i'm going to need the $$

 

[AnesFuture]

How much do people recommend to have in the bank for relocation. I know it obviously depends on distance but how much in general?

Thanks

 

[krodUT]

Sallie Mae
Amount: $1k-$15k
Interest: LIBOR + Index
Fee: 0% – 4%
Deferment: up to 36 months
Early Repayment Penalty: No
Other: %0.25 reduction with auto payments


Wells Fargo: MedCAP-XTRA


Amount: $15k
Interest: Prime + Index

Fee: 0%
Deferment: 36 months followed by another 24 months of forbearance (another term for deferment)

Early Repayment Penalty: No
Other: 0.50% reduction when graduation, 0.25% reduction with auto payments

Citi
Amount: $1K-$18K
Interest: Index
Fee: Call

Deferment: 60 months
Early Repayment Penalty: ?
Other: 0.25% reduction with auto payments

Graduate Leverage = Not accepting loan apps at the domoment. Will be several months until they do
Amount: up to $20K
Interest: LIBOR + Index
Fee: 0-6%
Deferment: up to 84 months
Early Repayment Penalty: No
Other: 1% rate reduction upon repayment; 0.25% reduction with auto payments


Your index interest rate will be based upon your credit. You really don't need a cosigner to get a decent deal on your loan.

The above lenders are the most legit ones I found online and heard about after talking to my schools financial aid office. Call yours to see if there are others they work with.

Wells Fargo has the longest total deferment which I thought was nice so I went with them.


To get a feel for what the Prime Rate has been like for the past 10 years:
http://www.moneycafe.com/library/ratecharts/ratecharts18.gif


To get a feel for the LIBOR Rate:
http://www.moneycafe.com/library/ratecharts/ratecharts14.gif


These outfits will usually send you the loan money fairly quickly if you desire but the juice starts running as soon as you receive it. The application is fairly easy and does not require as much paperwork as you may think. Good luck.

 

[krodUT]

By the way, you can expect a minimum interest rate of around 7.750%. They usually recalculate the rate monthly based upon the LIBOR or Prime Rate from the last day of whatever month it is. If that day is not a business day, they'll use the first business day of the next month.

 

[Frank Rizzo]

It came in handy at the time... i took out 10K. I paid it off within two months of starting a real job. If you need the money, take it, just know that the interest rate will suck.

 

[2ndyear]

How much do people recommend to have in the bank for relocation. I know it obviously depends on distance but how much in general?

Thanks

Depends where you're going and how much you do yourself. If you can pack yourself and put everything in a trailer it will be cheaper than renting a truck, which is cheaper than hiring a truck, which is cheaper than having the company pack for you as well. If you're going to a big city, plan on first/last/security +/- finders fee. On a $2000/month apartment this turns into 8 grand pretty quick!

 

[abc19]

are these loans commonly used by graduating students?

i've heard such mixed things (e.g. lots of people take them out without problems later on vs. do NOT take out these loans if possible). any advice/personal experiences/help would be appreciated

 

[cchoukal]

I think a lot of people forget just how expensive it is to get a new place to live. As someone above pointed out, just the deposit on a place can be several thousand dollars in a large city, and you obviously won't have your current apartment deposit back when you have to put the deposit down on the new one. Right now in SF, most people are asking for first, last, and a damage deposit. on my $1950 apartment, I put down 4900. Add to that about $3000 for the movers. Someone above mentioned that a moving van is cheaper, but I didn't find that to be the case, largely. My movers charged about $3000 for a 1 br apt-worth of stuff from Chicago to SF. In contrast, I priced the truck + trailer + sick amount of gas (since I would be towing a car), and it was in the low-to-mid-2's...

Also consider your last paycheck as a resident will likely not be direct deposited, as your other checks probably were; the hospital wants to make sure you turn everything in before you go, so many of them will cancel your direct deposit and mail your check, which means it won't come in time to pay your July rent in the new place. Add to THAT all the other start-up costs (groceries, cleaning supplies, any incidentals, travel costs) and it adds up pretty quickly...