To those who have already taken out money with THE.

[alwaysaangel]

Is their "monthly bonus" a 1.3% interest reduction or a 1.3% reduction in principle balance. The way they word it on their site makes it really unclear which it is.

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[Critical Mass]

Seems like there has been some talk about THE over in financial aid.

I personally never found a difference between any of the lenders. I opted for MEDLOANS, but I'm consolidating with my previous Direct Loans.

 

[alwaysaangel]

Seems like there has been some talk about THE over in financial aid.

I personally never found a difference between any of the lenders. I opted for MEDLOANS, but I'm consolidating with my previous Direct Loans.

Yeah - I just can't find a definitive answer on whether that bonus is a interest rate reduction or principle reduction. The finaid.org site says interest rate reduction, but a few people on threads I searched made it sound like a principle reduction.

 

[gaikokujin]

Is their "monthly bonus" a 1.3% interest reduction or a 1.3% reduction in principle balance. The way they word it on their site makes it really unclear which it is.

Why don't you just call them? I use THE and they always answer the phones promptly. Sorry i can't help you with your question though.

 

[THP]

I will just about guarantee you it is not a principle reduction.

 

[alwaysaangel]

I will just about guarantee you it is not a principle reduction.

Ok cool. Thats what I figured. Which is why I'm still leaning toward B of A which had a principle reduction.

 

[Cirrus83]

Well it's a little complicated, lol. Basically they issue a bonus each month, and it ends up paying down your interest that's accrued. But this means more of your own monthly payment can go towards the principle.

But either way, their site says that the bonus is "equal to an annualized interest rate discount of 0.75%" so I'd just use that to figure it out.

 

[njbmd]

Moving to Financial Aid.

 

[alwaysaangel]

Well it's a little complicated, lol. Basically they issue a bonus each month, and it ends up paying down your interest that's accrued. But this means more of your own monthly payment can go towards the principle.

But either way, their site says that the bonus is "equal to an annualized interest rate discount of 0.75%" so I'd just use that to figure it out.

Oh wow. Could you possibly link me?

That means that B of A is definitely the better choice for me. I was calculating it out as an annual interest discount of 1.3%

Thanks!

 

[alwaysaangel]

But either way, their site says that the bonus is "equal to an annualized interest rate discount of 0.75%" so I'd just use that to figure it out.

Yeah when you have the chance could you link me. I just want to make sure I understand all the aspects before I make a choice.

I thought the website said:
T.H.E.'s current Repayment Bonus payment rates:
T.H.E. Repayment Bonus
(Per Annum) 1.3%
Effective Interest Rate*** 5.5%

 

[Twitch]

Yeah when you have the chance could you link me. I just want to make sure I understand all the aspects before I make a choice.

I thought the website said:
T.H.E.'s current Repayment Bonus payment rates:
T.H.E. Repayment Bonus
(Per Annum) 1.3%
Effective Interest Rate*** 5.5%

I haven't done the math but my guess is that the effective 0.75% reduction is over the course of the loan. See the effective interest rate calc THE uses = 6.8% - 1.3% = 5.5%. However, the catch appears to be that the reduction takes place when you enter repayment. So for unsub stafford you're accruing 6.8% over 4 years of med school (and maybe more if you do delay payment during residency).

So 4 years med school + 4 years (say) residency => you don't get the 1.3% reduction till after 8 years and all this time you've accrued 6.8% interest. And if you want to do a fellowship well tag on that many years more at the full 6.8%. I'm making the assumption that they'll consider forebearance as not entered repayment (thus you'll accrue at full 6.8%).

 

[edubbs5]

It would be nice if there was easy answer as to which lender is best, but from what I have heard.
THE bonus can get tricky to understand - but it is really a great deal because you don't have to wait to receive it (like others you have to wait to receive it). Plus you alre always eligible to receive because it isn't tied on-time payments, where as with other lenders - you may miss a payment or be late one month, and then you are no longer eligible to receive any savings.

THE Bonus on Stafford loans is 1.3% but if you Consolidate those loans then the repayment incentive is .75%. THE Bonus payment always goes interest - much like it was said above, so that more of your payment goes towards bringing down the principal balance (less interest paid, and paid off sooner).

 

[Twitch]

So the CSR @ THE confirmed that you when you defer you'll still accrue interest at the FULL 6.8% interest rate. It's only when you pay (i.e AFTER residency/fellowship) you get the 1.3% discount.

So if the entire process (med school-4/residenc-4/fellowship-2) takes 10 years and you defer interest payments on those pesky unsubs - guess what you're accruing the FULL 6.8% interest the entire time.

EDIT: Not saying the others are any better, but if someone does come across a lender with better terms please let us know.

 

[edubbs5]

So the CSR @ THE confirmed that you when you defer you'll still accrue interest at the FULL 6.8% interest rate. It's only when you pay (i.e AFTER residency/fellowship) you get the 1.3% discount.

So if the entire process (med school-4/residenc-4/fellowship-2) takes 10 years and you defer interest payments on those pesky unsubs - guess what you're accruing the FULL 6.8% interest the entire time.

EDIT: Not saying the others are any better, but if someone does come across a lender with better terms please let us know.

That's true - repayment incentives usually only apply when your status is actually "repayment" (vs. deferment, forbearance, etc). Bummer!

 

[BEMD]

So the CSR @ THE confirmed that you when you defer you'll still accrue interest at the FULL 6.8% interest rate. It's only when you pay (i.e AFTER residency/fellowship) you get the 1.3% discount.

So if the entire process (med school-4/residenc-4/fellowship-2) takes 10 years and you defer interest payments on those pesky unsubs - guess what you're accruing the FULL 6.8% interest the entire time.

EDIT: Not saying the others are any better, but if someone does come across a lender with better terms please let us know.

Personally I went with THE. I wasn't able to find any that had significant decreases in the interest prior to repayment. The fact that the 1.3% rate decrease was easy to earn was the major reason that I went with T.H.E. That and the fact that their Customer Service was much nicer and more cooperative then the other two companies that I spoke with. Just my two cents.

 

[It'sElectric]

So the CSR @ THE confirmed that you when you defer you'll still accrue interest at the FULL 6.8% interest rate. It's only when you pay (i.e AFTER residency/fellowship) you get the 1.3% discount.

So if the entire process (med school-4/residenc-4/fellowship-2) takes 10 years and you defer interest payments on those pesky unsubs - guess what you're accruing the FULL 6.8% interest the entire time.

EDIT: Not saying the others are any better, but if someone does come across a lender with better terms please let us know.

I've never, ever heard of a lender that provides you with the interest rate reduction before you actually go into repayment. THE is actually unique in that the reduction begins immediately, rather than 3 years later like most lenders.

 

[p9142]

I've never, ever heard of a lender that provides you with the interest rate reduction before you actually go into repayment. THE is actually unique in that the reduction begins immediately, rather than 3 years later like most lenders.

The AAMC medloans give you and interest rate reduction immediately after disbursement. I was positive that I was going to use THE, but the medloans look like a much better deal.

 

[It'sElectric]

The AAMC medloans give you and interest rate reduction immediately after disbursement. I was positive that I was going to use THE, but the medloans look like a much better deal.

But they're through Sallie Mae, and I've heard enough bad things about them to avoid it like the Plague.

 

[p9142]

But they're through Sallie Mae, and I've heard enough bad things about them to avoid it like the Plague.

I know that is what has me so scared about this loan. The terms are great, but this company is so evil that I am thinking there must be a catch. On the other hand, I don't want to pay more money to T.H.E. just because they seem to have better customer service because we are talking thousand of dollars difference over the life of the loan.

 

[It'sElectric]

I know that is what has me so scared about this loan. The terms are great, but this company is so evil that I am thinking there must be a catch. On the other hand, I don't want to pay more money to T.H.E. just because they seem to have better customer service because we are talking thousand of dollars difference over the life of the loan.

Just so you're aware:

http://www.consumeraffairs.com/finance/sallie_mae.html

 

[p9142]

Just so you're aware:

http://www.consumeraffairs.com/finance/sallie_mae.html

Wow, they are even worse then I imagined.