Advice for private loans for college

[PClark99]

I am looking to borrow some money for my son for his tuition.

Looking at a private loan.

Anybody have any personal experience with any of the many loan companies out there?

Good or Bad, any info is helpful.

Followup, My son isn't into a trade so that's not an option. I am planning on taking a loan and paying it off without any deferral in order to keep the interest in check. We aren't talking a huge loan here, maybe 10-15k, thats all.


Thanks anyway.

TIA

 

[Lost_in_the_HTTP]

Don't.

If he can't get enough of job to pay his own way, skip college for now. Find a trade school or an apprenticeship program. Something where he can work, learn and earn all at the same time.

 

[Captante]

Don't.

If he can't get enough of job to pay his own way, skip college for now. Find a trade school or an apprenticeship program. Something where he can work, learn and earn all at the same time.

Holy balls .... I completely agree with you on something!

I suppose it had to happen!

 

[Lost_in_the_HTTP]

I've got a couple of neighbors working 7 12 hour shifts as welders. Companies can't find enough qualified welders. These guys are making money hand over fist, but they're killing themselves in the process.

All of the trades are hurting, plumbers, carpenters, electricians, brick layers, masons, roofers ... all of them are understaffed and overworked. Not everybody can do those jobs. It takes training, talent and attention to detail. Heavy equipment operators also.

But the bigger problem is that too many kids want to sit in an air conditioned office punching buttons on a keyboard. They have no concept of how that office building came to be.

 

[Lost_in_the_HTTP]

Machinists, Tool and Die makers and so on are becoming lost arts because the older guys are retiring (or dying) with no one in line to train to take over.


Even the most sophisticated automated assembly robots have to have their bits and parts machined. Everybody wants to learn to program the Bots. Nobody wants to learn how to make, assemble and maintain them.

 

[repoman0]

I've got a couple of neighbors working 7 12 hour shifts as welders. Companies can't find enough qualified welders. These guys are making money hand over fist, but they're killing themselves in the process.

All of the trades are hurting, plumbers, carpenters, electricians, brick layers, masons, roofers ... all of them are understaffed and overworked. Not everybody can do those jobs. It takes training, talent and attention to detail. Heavy equipment operators also.

This does not sound like a convincing argument to go into a trade. Too much work that destroys your body all for less money than a typical 40 hour per week engineering job.

I agree college is certainly not for everyone and it’s not even totally necessary for some cushy software engineering jobs these days. For the right students though it’s very worth it, even taking on loans. Certainly the best thing I could have possibly done for maximizing lifetime earnings and building a good life.

@OP, check the usual places — your local credit union, etc. My private loans were through Sallie Mae, not even sure they exist anymore, and it was fine. Doubt there will be a big difference between providers, just find the lowest interest rate you can. And go for federal loans first if possible.

 

[Fenixgoon]

credit unions, even a HELOC (not that i know if it's a good idea or a bad one, just that it's another resource)
what about scholarships for your son? especially if he's in a STEM field, there are lots of places that will provide scholarships. the federal government tries to recruit via the SMART program, which covers tuition AND a stipend in a 1-for-1 service program (every year of sponsorship/payment is 1 year of committed employment)

DoD STEM Scholarships & Grants - SMART Scholarship

The SMART Scholarship Program provides STEM students with full tuition, annual stipends, & employment with the Department of Defense (DoD) after graduation.

www.smartscholarship.org

 

[BoomerD]

This does not sound like a convincing argument to go into a trade. Too much work that destroys your body all for less money than a typical 40 hour per week engineering job.

I agree college is certainly not for everyone and it’s not even totally necessary for some cushy software engineering jobs these days. For the right students though it’s very worth it, even taking on loans. Certainly the best thing I could have possibly done for maximizing lifetime earnings and building a good life.

@OP, check the usual places — your local credit union, etc. My private loans were through Sallie Mae, not even sure they exist anymore, and it was fine. Doubt there will be a big difference between providers, just find the lowest interest rate you can. And go for federal loans first if possible.

After I got out of the Corps, I knew college wasn't for me...so I busted my ass and earned my way into a union apprenticeship as an Operating Engineer. (heavy equipment operator)
For a high school drop out with no formal education, I made pretty good money. (I was just under $40/hr + benefits when I got retired medically in 2003) Does working construction take its toll? Yes, sure does...or it can anyway, but for me, it was miles better than an office job.

 

[dave_the_nerd]

I'm a few years out of date, but have you already filled out a FAFSA and seen if you qualify for the usual Stafford loans first? There's a limit (was $7k/semester when I did it) but that sounds like it would be well in excess of what you need if you're looking at $15k over four years.

 

[highland145]

What Dave said..fafsa. Sallie Mae and FSA loan. Some of those are subsidised, interest deferred. My adopted child's fsa are 5%, fixed. The Sallie Mae were upwards of 11%, variable. Rolled those into SoFi at 8.1%. They might give you the initial ED loan.

Does your state have a lottery? Ours paid $5K/yr as long as they have a 3.0gpa and another $2500 for stem majors.

Otherwise, it's a personal loan...prolly 18%.

We are...

 

[PClark99]

Thanks for all the advice.

 

[nisryus]

Also this year FAFSA has some changes coming.

Applying for FAFSA in 2023 Will Be Different. What to Know (Including Deadlines) | KQED

FAFSA applications are usually open from Oct. 1 to March 2. But now students can't start to work on their applications until sometime in December 2023, among other changes.

www.kqed.org

Maybe look at scholarships?

https://www.careeronestop.org/Toolkit/Training/find-scholarships.aspx

 

[dave_the_nerd]

Oh, FWIW, my local credit union offers student loans and stuff. Never investigated it but when I've bought cars they usually come out ahead on interest rates and fees. Might want to check with yours, too.

 

[highland145]

Poop. Looks like fasfa deadline was 6/30. Kid started grad school so I didn't fill it out this year. Turns out he might need it for grants or some such.

 

[Fenixgoon]

Poop. Looks like fasfa deadline was 6/30. Kid started grad school so I didn't fill it out this year. Turns out he might need it for grants or some such.

Grad school? Grants. Grants everywhere. The federal government has tons of research grants. Your son's advisor is almost assuredly has projects for grants

 

[highland145]

Grad school? Grants. Grants everywhere. The federal government has tons of research grants. Your son's advisor is almost assuredly has projects for grants

I'll pass that on. He acted like fasfa had to be done to get them. I did tell him to contact admissions but his profs should know. Heck, research is what chemists do.

Thanks.

 

[lxskllr]

We already have a loan shark. This ocean isn't big enough for two.