T.h.e.

[DesiInNyc]

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(1) i like t.h.e. for stafford loans because of their zero orig/zero guar fees. but my FA advisor says she's familiar with them and "what you don't pay for upfront, you pay for at the start of repayment." is this true?

(2) also, i want to get one other thing clear:
with t.h.e. unsubsidized stafford loans, if i don't pay interest every month while i am in school, but make one lump some interest payment after graduation (during grace but before repayment starts), then it IS the same thing. hence it is better to go with the latter option and do the lump sum payment. is this true?

plz chime in if you or a friend has experience specifically with t.h.e.

thanx

 

[mpp]

I don't know the answer to your first question. Your second question is correct for all Stafford loan lenders. Interest does not capitalize until you enter repayment. Making a lump sum payment when you are finished with school is the same as making the interest payments while in school.

 

[group_theory]

I wonder ...

If you have some money left over from your loans after each year

should you

1. Give it back as unused - so that your principle amnt borrowed will be less

2. Use it to pay off the interested on the unsub stafford loans


If you pick option 1 - the principle sum borrowed will be less - so less interest will accumulate (and the less you have to repay)

If you pick option 2 - after 4 years, you will have no interest that will be capitalized. Therefore, you won't be paying interest on the interest.


I guess the calculations would be easier if I use numbers instead of hypotheticals - and I'm not even sure you have an option of either 1 or 2

I'm just thinking ... if those options are possible ... and which one would be better.

Group_theory
PCOM '007 <----- James Bond

 

[KyGrlDr2B]

I've been wondering what to do with my extra money. I have about 6K left to last me till Aug and gee, I think I can manage. I think I am going to pay my interest this summer and keep the rest. You never know when you have an emergency and need the extra cash. I've borrowed less for next year so that probably won't happen again.

 

[DesiInNyc]

c'mon people, plz chime in, anytime now. ty

 

[birdie]

The seems to have some decent rates. I will probably apply for their private loan in the coming days. Lemme know if you hear anything else positive/negative about them.

 

[mcwmark]

I don't know what your FA is talking about, but our school has made t.h.e. one of their "recommended" lenders, which means probably half of our class is using them--

I just switched to them, so I haven't had any personal experience with them, but from what I can tell, there doesn't seem to be anything different at repayment vs. other lenders except for the discounting scheme (which appears to be in t.h.e.'s favor unless the interest rate remains ridiculously low as it is now).

 

[DesiInNyc]

i think the FA lady at NYCOM was BSing as well-- I called t.h.e. and they said no extra fees at repayment. if anyone else can think of some good questions, call t.h.e. at 888-843-0004 and ask them, and let us know😉