Whats a good place to get a loan for a college student?

[ManBearPig]

Sophomore...need about $2000-2500.

Thoughts?

Thanks!

 

[Inspector Jihad]

from a bank lol

 

[legoman666]

parents

 

[Kaido]

Pell Grant

 

[tfinch2]

The government

 

[Drako]

My rich uncle.

 

[halik]

Originally posted by: Kazaam
Sophomore...need about $2000-2500.

Thoughts?

Thanks!

bank?

 

[IEC]

Wachovia

 

[roguerower]

Government through FAFSA...low percentage rate is nice

 

[imported_Lothar]

Prosper

 

[skim milk]

govt.

 

[Dirigible]

Originally posted by: roguerower
Government through FAFSA...low percentage rate is nice

Yes. Go to your school's financial aid office. Talk to the people there. Fill out the FAFSA.

 

[ManBearPig]

i guess they recommend a sallie mae private loan...good?

 

[fire400]

try several banks and get quotes. it's the only way to make sure you get the best deal.

 

[Special K]

Originally posted by: roguerower
Government through FAFSA...low percentage rate is nice

Aren't government-backed student loans currently at a fixed 6.8% right now? I believe there is a gradual reduction down to 3.4% over the next few years, but 6.8% is pretty high. They used to be tied to the 91-day Tbill yield until you consolidated.

 

[Xcobra]

Originally posted by: Special K

Originally posted by: roguerower
Government through FAFSA...low percentage rate is nice

Aren't government-backed student loans currently at a fixed 6.8% right now? I believe there is a gradual reduction down to 3.4% over the next few years, but 6.8% is pretty high. They used to be tied to the 91-day Tbill yield until you consolidated.

Mines at 4.7% but I consolidated some time ago, but still low....so file FAFSA, then choose Subsidized or Unsubsidized depending your family's income or you could get a Parent PLUS Loan for your parents but doubt they'd want debt...

 

[ManBearPig]

so a subsidized loan is better than a private loan?

they're actually both through sallie mae. What i need it for is paying for my off campus housing and utilities, fafsa loans and grants didnt give me enough for that...is a subsidized loan only for school?

 

[Special K]

Originally posted by: Kazaam
so a subsidized loan is better than a private loan?

they're actually both through sallie mae. What i need it for is paying for my off campus housing and utilities, fafsa loans and grants didnt give me enough for that...is a subsidized loan only for school?

Subsidized loans means the government will pay the interest on the loans while you are in school or the loans are in deferment. With private loans, payments will be due immediately. You don't *have* to make a payment if the private loans are in deferment, but if you don't pay at least the interest, it will be added to your outstanding balance. This means your private loan balance will compound over time if you do not pay at least the interest.

Private loans are generally bad because the rates aren't as favorable. Also I have read articles stating that the recent credit crunch has spilled over into the student loan market, which means the loans could be harder to come by.

 

[Wreckem]

Originally posted by: Special K

Originally posted by: roguerower
Government through FAFSA...low percentage rate is nice

Aren't government-backed student loans currently at a fixed 6.8% right now? I believe there is a gradual reduction down to 3.4% over the next few years, but 6.8% is pretty high. They used to be tied to the 91-day Tbill yield until you consolidated.

Yeah they are at 6.8% while in school, 7 something when in repayment. The lenders were tired of having to give out student loans at 2.8-3.5% so the Feds pegged the rate to 6.8%.

During the 2011-2012 school year they will be back down to 3.4% before bouncing back to 6.8% the next year.

 

[Wreckem]

Originally posted by: Kazaam
so a subsidized loan is better than a private loan?

they're actually both through sallie mae. What i need it for is paying for my off campus housing and utilities, fafsa loans and grants didnt give me enough for that...is a subsidized loan only for school?

If you already filled your fafsa, and were only given an unsubsidized loan it means you werent eligible for a subsidized loan.

If you've already done a fafsa.

You have two options,

A Federal Parent Plus Loan, where your parents would have to meet minimal credit standards, its not based on credit score, it is based on on time payments over the past 3 years and no defaults in the past 5 years.

A private loan, where you or your parents will have to meet strict credit requirements, and likely 10-12% interest.

 

[Eeezee]

Go to your financial aid office

Speak with one of their advisers

Mention that you are willing to take a student loan (don't just ask for free money), and would prefer a subsidized loan

They probably have all of your FAFSA and stuff on file, so they can help you figure out what you can do. It's usually very easy to increase your unsubsidized loan amount no matter how much you need.

In any case, I'd recommend going to the financial aid office.

 

[ColdFusion718]

Originally posted by: Kazaam
i guess they recommend a sallie mae private loan...good?

I would not recommend doing business with them for the time being. There is some internal investigation going on about something shady. Don't ask me how I know this.

 

[akshatp]

Whats a good place to get a loan for a college student?

Bulk or regular?

 

[DanTMWTMP]

try to avoid private. But if you must, call/look for the best rates. Places to start: any local banks, campusdoor.com, citibank student loans (i've gone through them for a 4k student loan..had the lowest rate in my search at the time).

 

[destrekor]

Originally posted by: Wreckem

Originally posted by: Special K

Originally posted by: roguerower
Government through FAFSA...low percentage rate is nice

Aren't government-backed student loans currently at a fixed 6.8% right now? I believe there is a gradual reduction down to 3.4% over the next few years, but 6.8% is pretty high. They used to be tied to the 91-day Tbill yield until you consolidated.

Yeah they are at 6.8% while in school, 7 something when in repayment. The lenders were tired of having to give out student loans at 2.8-3.5% so the Feds pegged the rate to 6.8%.

During the 2011-2012 school year they will be back down to 3.4% before bouncing back to 6.8% the next year.

I currently have a unsubsidized loan in my name for school... when I graduate (2010), am I going to be stuck at the 7% repayment, or will that fluctuate?

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