8
Hey guys,
.
I filed my FAFSA and I am ineligible for any federal loans, so I would have to take out private student loans.
I have a co-signer with pretty good credit (credit score over 700) and, here’s the kicker, I actually do have the money to pay it, but it’s in in the stock market (it would be at a higher interest rate though). However, I was thinking of taking out a student loan since you can make small payments over a long period of time. Nevertheless, it seems like many people regret taking out these loans in the first place.
So, a few questions:
1. Is it a good idea to take out a student loan?
2. Which lender do you recommend (so far I”m looking at Sallie Mae, Citibank and Access)?
3. Is there an option for automatic bill payment with these student loan lenders and would this prevent me from having the interest rate increase?
4. About what interest rates can I expect for a private student loan?
Thanks so much for all your help.
Tags: Automatic Bill Payment, Citibank, Co Signer, Credit Score, Fafsa, Federal Loans, Hey Guys, Interest Rate, Interest Rates, Kicker, Money, Period Of Time, Private Loans, Private Student Loans, Rate Increase, Sallie Mae, Stock Market, Student Loan Lenders
July 10th, 2008 at 10:12 am
If you dont need the money, then no, don’t get one
The good news is that the interest rates are fairly low, (Never higher than 8.25% on stafford loans) and the interest you pay is tax deductibe. The lender is of no importance, they all charge the government interest rates for these loans. When you can consolidate, that gives you a break on interest and if you pay through automatic bank withdraws, they usually lower the interest more
July 13th, 2008 at 5:58 am
to answer :
1: no i hate student loans, unless you have a great job, or lots of money to pay it back
2: sallie mae
3: yes
4: depending on if u consolidate them, I have 10 loans out right now to pay for my education, (i went to Itt tech and graduated in 05, hlaf of them were able to be consolidated and my intereset rate is 2.8 my uncoldiated loans are 18.25!!!!!!! And the wrose part is I dont have a job in computers right now because of the market and so I am paying 600 dollars every month for loans……if u get some, my recommadation is dont wait to pay for it.
July 14th, 2008 at 10:10 am
Private Loans have a variable interest rate and are usually fairly high. When it comes to these kinds of student loans, they are never a good idea if there is another option to pay. In the student loan industry, we consider private loans an “option of last resort”. So 1, no. 2. For rates, compare Sallie Mae, Citibank, Wells Fargo, Wachovia, and Nelnet. 3. Auto pay may reduce the interest, but it won’t keep it from going up with the market. The rates on these loans are similar to credit cards. 4. 10-18% depending on your cosigner’s credit.
Add A Comment