Sallie Mae Loan?

[MavsFanForLife]

I just received my Financial aid offer from my school and was curious about going the private route, specifically the Sallie Mae loan over the Federal Plus loan with the interest rate at 7.595 percent. My wife is a finance major, and has done well to ensure we both have excellent credit. Looking at the Sallie Mae loan, it seems that I may be able to get a better rate, with better flexibility of payment. I am a little hesitant however, since most students seem to go the federal PLUS route. Am I missing something?

 

[knewstance]

If you can get the lower interest rate it could be beneficial, but the issue comes if you plan on doing any of the available plans (IBR, REPAYE, loan forgiveness). If you plan on just paying it all back and the rate/term they are offering is something you think you can handle, that seems like it would be the best route.

 

[zToothinator]

Another idea would be to get the PLUS loans and then refinance upon graduation. That way you’ll know whether you plan to pay it off completely or take advantage of IBR, REPAYE, forgiveness, etc

 

[Cthuluhoop]

Another idea would be to get the PLUS loans and then refinance upon graduation. That way you’ll know whether you plan to pay it off completely or take advantage of IBR, REPAYE, forgiveness, etc

I'm under the impression that you can’t refinance until down the line when you have a few years of solid and dependable production and income to show a bank. Doesn't seem likely to me that a bank would lower your interest rate right out of school with nothing to show them as far as dependable income

Like others said, how much is your dental school going to be? If it’s going to be over $350K for all 4 years I would do federal so you can take advantage of the repayment programs, if they're still around