Stafford loans

[hockeydentist]

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Quick question about the promisary note for stafford loans. Is it advisable to pay the interest while you're in school or wait till you get out. I hear stafford loans interest rate is 4.5%, but most likely going up by 1% in July.

 

[coreyb]

I'm fairly certain the stafford loans are all going to be fixed at 6.8% very soon.

You can thank Cheney and Bush. BOO! 🙁

 

[CallMeAl]

yah....Bush passed a law and now all stafford loans will always be set at 6.8% and never fluctuate. Thus, consolidation is not an option anymore

 

[Hmmwhat]

yah....Bush passed a law and now all stafford loans will always be set at 6.8% and never fluctuate. Thus, consolidation is not an option anymore

Where did you hear this, my new mpn stated that it can fluctuate every July or something like that.

 

[ca_dreamin']

Generally, it can fluctuate every July 1st, but this will not be the case the next several years. The interest rate is going to be set at a fixed interest rate -- 6.8% I think.

If you have loans from this past year, you still have a few more days left to consolidate and lock in the lower interest rates for those loans...just make sure it's finalized before July 1.

 

[UtahDDS]

Can those of us signed up for loans this year lock in on the lower interest rate?

 

[nshah613]

i have a question too... If i consolidate my stafford loans from undergrad, don't i have to start repaying them soon? or can i consolidate and still defer it until i graduate from dental school?

 

[UtahDDS]

if you want to consolitade your undergrad loans you better do it today. Tomorrow is the deadline. You can defer payments until after dental school but you loose your grace period. I am trying to decide if I am going to need that grace period...

 

[ca_dreamin']

Can those of us signed up for loans this year lock in on the lower interest rate?

The loans for the upcoming 2006-07 year will be set at 6.8%. I do not think that it is possible to lock in the lower rate unless you have already participated in the quarter/ semester that the loan was taken for. You can always call Direct Loans today if you have questions or go to http://www.loanconsolidation.ed.gov

 

[crazy_sherm]

Quick question about the promisary note for stafford loans. Is it advisable to pay the interest while you're in school or wait till you get out. I hear stafford loans interest rate is 4.5%, but most likely going up by 1% in July.

Question is what are you going to pay the interest off with while in school? More loans? That kind of defeats the purpose. Most people don't pay the interest while in school.

 

[aggie-master]

Question is what are you going to pay the interest off with while in school? More loans? That kind of defeats the purpose. Most people don't pay the interest while in school.

crazy makes a very good point there.

Also, many times you don't get the full dollar amount of your loan. They say you borrowed $10,000, but you might only get $9,700 when they cut your loan check due to guarantor and origination fees. I would try to minimize the amount that I borrow while I'm in school and not worry about paying the interest on them in school.

 

[hockeydentist]

I posted the question, with out really giving it much thought.. I just wish I could have locked in loans at the current rate rather than the rate after july 1st.

hd

 

[ems5184]

From a business standpoint it is only advisable to pay interest while in school if you are using the money to make a profit (i.e. investing with it) which most people are not unless they have the cash to pay for tuition anyways.

For the average dental student, you are ALWAYS better off just taking less loan money, and minimizing the principal, rather than re-paying interest with other loans as crazy point out. Hope this helps