Tuition payment options question

[vitalityforlife]

Hey all! To those who have recently been accepted into programs for this coming year - congratulations!

My question is for anyone who has had to figure out different loans to consider for tuition. I have done some research online but really feel like a lot of the descriptions were confusing.
I'm thinking of applying to St. Augustine but noticed they only take part in Stafford Loans but not Grad PLUS loans. What is the difference between the two? I really don't want to take out private loans - they are usually high interest and a guarantor is needed which I want to avoid.

How have y'all planned on going about paying tuition fees? Can anyone provide some concise descriptions of different loans that are surely available for students and how much is available?

Any help on this subject is greatly appreciated!

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[CherokeeWahine]

Both the Stafford loan and the Grad PLUS loan are federal loans. I believe (not entirely sure about this, so don't quote me on it) that St. Augustine does not allow the Grad PLUS loan because of their non-profit status. Their students take out the Sallie Mae Smart Option loan (which is considered a private loan) to cover any expenses above/beyond what the Stafford loan covers.

The PT school I'm attending the fall (Puget Sound) offers us the Stafford, Perkins (an income-based federal loan), and the Grad PLUS. Readers Digest version: the government sends them the loan money, they use it to pay our tuition/fees, and they give us a check or direct deposit for the remaining amount on the first day of school. We then use the remaining amount to pay for our living expenses, books, etc.

Here's some links to additional information about student loan options:

1) Sallie Mae Smart Option Loan
2) Stafford Loan
3) Grad PLUS Loan

 

[chc1438]

I thought that the Staffoed Loan was no longer available for grad students. That's what I heard.

 

[DPTorDO]

I thought that the Staffoed Loan was no longer available for grad students. That's what I heard.

They are ceasing the subsidized stafford loan after July 1 but the unsubsidized is still offered to graduate students

 

[TxDPT14]

There are unsubsidized and subsidized stafford loans. They are no longer giving out subsidized stafford loans...I think.

 

[CherokeeWahine]

They are ceasing the subsidized stafford loan after July 1 but the unsubsidized is still offered to graduate students

Correct. Subsidized Stafford (where the govt pays the interest while you're in school) is going away.

Unsubsidized Stafford is the only option for grad students now (where the interest begins to accrue while you're in school)

 

[vitalityforlife]

Is it still feasible to pay for all of grad school with federal loans or do most people have to pull out private loans now? I don't understand why the subsidized loans are going away?

 

[Kepania]

Is it still feasible to pay for all of grad school with federal loans or do most people have to pull out private loans now? I don't understand why the subsidized loans are going away?

The subsidized loans are going away as part of a budget cut plan that the prez signed last year. It's basically a way for the government to save money (by screwing students... argh!)

It is feasible to pay for grad school with federal loans in the form of stafford AND grad plus loans. If your school doesn't take grad plus loans for some reason, then you do have to go to private loans, though. Stafford loans have a maximum per year of $20,500. So after you have maxed those out each year, the rest of your cost of attendance (tuition and living expenses) are covered by grad plus loans. This is the preferred plan, as federal loans tend to have lower interest than private loans.

I'm going to attend a stupidly expensive private school. So, each year, I'll max out my staffords at $20,500 and the remaining tuition and my living expenses will be covered by grad plus loans.

I cringed when I signed those papers, but alas, I gotta pay for this somehow, and astronomical loans are my only option.
8-O

 

[CherokeeWahine]

I'm going to attend a stupidly expensive private school. So, each year, I'll max out my staffords at $20,500 and the remaining tuition and my living expenses will be covered by grad plus loans.

I cringed when I signed those papers, but alas, I gotta pay for this somehow, and astronomical loans are my only option.
8-O

Don't worry! There's gonna be a bunch of us in that boat with you!

 

[elmcd77]

I have not been able to find much information online, but has anyone had any success with a lower interest rate in a private loan? My mortgage is 4.5% and my parents' is 3.8%. This leads me to believe that there has to be private loans out there with interest rates well below the 6.8% for stafford loans.

I am lucky enough to be attending my state school this May, and can cover all costs through stafford loans, but I obviously want to find the lowest interest rate available. This is even more important to me now that we can't take out subsidized loans. I understand the benefits of taking out federal student loans, but I was hoping anyone who has taken out private loans could shed a little light on this for me. Also, where should we begin to look for them. Are Sallie Mae's good? I have heard a bit about Wells Fargo. Do they require you to make payments while in school? Thanks to anyone who may have some answers.

 

[DPT8387]

The majority of my undergrad debt is through Sallie Mae and if you can avoid borrowing through them, do. The customer service is terrible and they have absolutely no flexible repayment plans. They are horrible and a constant soure of stress for me

 

[CherokeeWahine]

I have not been able to find much information online, but has anyone had any success with a lower interest rate in a private loan? My mortgage is 4.5% and my parents' is 3.8%. This leads me to believe that there has to be private loans out there with interest rates well below the 6.8% for stafford loans.

The problem with private loans is that the interest rate is #1) based on your credit score (and if your credit score isn't up to their standards, you have to drag in a cosigner), and #2) the interest rate is typically variable, which means that it might start off lower than 6.8%, but if the economy takes a nosedive or you miss a payment, the interest rate goes up. Some private loans do offer fixed rates, but once again, it's based on your/your cosigner's credit scores.

 

[Seatown87]

A quick look at Wells Fargo Grad school loans shows a variable interest rate between 3.5% and 9% with fixed interest rates at around 7%