karariki

www.chanhonline.com
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Nov 18, 2005
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Pharmacy Student
hi everyone,

i'm a 1st time borrower so i need ur help.

T.H.E:
- fixed interest rate: 8.5%
- will refund 3% origination fee w/in 6 months after disbursement
- repayment befenit: 1.3% reduction

Student Loan Express:
-Fixed interest rates as low as 6.5%, but not sure if qualified
- charges 3% origination fee
- repayment benefit: not mentioned.

which one is better?
3% origination fee is one time fee, right?
Thank you.
 

OSUdoc08

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Sep 30, 2003
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Medical Student
karariki said:
hi everyone,

i'm a 1st time borrower so i need ur help.

T.H.E:
- fixed interest rate: 8.5%
- will refund 3% origination fee w/in 6 months after disbursement
- repayment befenit: 1.3% reduction

Student Loan Express:
-Fixed interest rates as low as 6.5%, but not sure if qualified
- charges 3% origination fee
- repayment benefit: not mentioned.

which one is better?
3% origination fee is one time fee, right?
Thank you.
I'm not sure where you are getting your information, but there is no origination fee with T.H.E.

T.H.E. seems to be the most popular company at my school...
 

natsipoo

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May 31, 2005
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OSUdoc08 said:
I'm not sure where you are getting your information, but there is no origination fee with T.H.E.
From th T.H.E. website:

http://www.northstar.org/GradPlus/Student.aspx

"Regulations prohibit lenders from paying the 3% origination fees for PLUS...
Our answer - the 3% origination fee will be credited to your account within six months of final disbursement."
 
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OSUdoc08

Membership Revoked
Removed
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Sep 30, 2003
7,698
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Medical Student
natsipoo said:
From th T.H.E. website:

http://www.northstar.org/GradPlus/Student.aspx

"Regulations prohibit lenders from paying the 3% origination fees for PLUS...
Our answer - the 3% origination fee will be credited to your account within six months of final disbursement."
That's for the Plus loan.

Most medical students only take out Stafford and Perkins loans, which have no origination fee.

Plus is an additional loan if your COA exceeds your maximum Stafford/Perkins.
 

edubbs5

Junior Member
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Jul 20, 2006
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8.5% is for the Graduate Plus Loan and Parent Plus loans.

The 6.8% rate is for Stafford loans.

These are FEDERAL interest rates - every lender is required to provide the same interest rates based on the guidelines of the Federal Loan Program.

Just thought you would like to know!
 

cyperalz

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My advice would be to select a lender that has the most benefits at reducing interets bc it's this annual interest that kill you!!!

Take at look at EFSI GradPlus loan (gradplus should only be requested after government loans).. in comparison to Citibank, THE, Student Express, EFSI seem to be offers the most interest benefits. They offer a .25% reduction simply when you enter repayment, and an additional 1.75% interest reduction by having your payments electronically deducted from your bank. I don't think the other lenders offer an interest reduction so easily. I may be wrong, so do your research.

Also, always get gov. or GradPlus loans before you apply for a private loan! And pay off the balance in great amounts at the beggining so interest doen't have the chance to add up so much.
 

natsipoo

Member
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May 31, 2005
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The OP is referring to PLUS loans, not Stafford loans. The mention of a 8.5% interest rate is a dead give-away. There are still professional students out there (including myself), who utilise the GradPLUS or private loans.

THE refunds the 3% origination fee which is mandatory
http://www.northstar.org/GradPlus/Student.aspx
" Regulations prohibit lenders from paying the 3% origination fees for PLUS...
Our answer - the 3% origination fee will be credited to your account within six months of final disbursement."

While Student Loan Express offers rates as low as 6.5% with borrower benefits programmes.
http://www.studentloanxpress.com/student-loan-products/federal-graduate-plus-loan.html
"Fixed interest rates as low as 6.5%, with borrower benefit programs (based on school attended)"
 

edubbs5

Junior Member
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Jul 20, 2006
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It is important to understand the limits that go with their incentives. Many of these lenders offer incentives linked to "on-time payments" - but they do that because they know that only 5-15% of students will actually receive these (based on studies done by the Wall Street Journal, etc). Also, these lenders are usually "for profit lenders".

Ask questions like:
What is your definition of “late” payment?
What happens if I miss a payment?
Can I regain eligibility for the repayment incentive?
If I request a deferment or forbearance, will I lose my repayment incentive?
What percent of your borrowers in repayment are currently receiving the incentive?
How long has the incentive been in place?
Do you publish your qualification rate?

You have to consider phrases like "as low as" - this just means that a small percentage of borrower will ever see this benefit.
 
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