Fed Financial
Best source for private student loans?
I've run into a problem with paying for my final semester of grad school. Tuition is due january 26, 2008. I am currently dependent on my mother for all resources (she claims me as a dependent) until I get married in April. I cannot apply for FAFSA/gov loans (too much income, not enough time). Where should I go for private student loans? My fiance will cosign my loan (he has very good credit, my mother does not). Should I go to the bank, or Sallie Mae, etc.? ty!
Public Comments
- You can get a federal student loan through fafsa regardless of income or your credit and you don't need a cosigner. Don't forget, as a grad student (with a bachelors degree) you will NOT be required to put moms income. Do not take out a private student loan, they are evil. They have higher destination fees, higher interest rates, and substandard terms. Find ANY OTHER WAY besides a private student loan. Most schools will allow you to be put on a payment plan, or let you still attend school with a pending fafsa. You can do a fafsa, and then in a few weeks when the loan money does come in, you can pay off the rich aunt you borrowed the money from. Or unhock that lawn mower you weren't using anyway cause it's winter. Here is a good publication about federal student loans, the interest rates, and he maximum amounts you can borrow. Good luck.
- FinAid.org has a comprehensive list of Private Lenders: http://www.finaid.org/loans/privatestudentloans.phtml I would stay away from Sallie Mae, and definitely use a co-signer to get a better rate. Some popular lenders are: www.ThinkFinancial.com www.AstriveStudnetLoan.com www.TuitionWiseLoans.com and monticello student loans. Only use private student loans if it is your last resort. Good Luck :) www.
- Found 1 is absolutely correct - stay away from private loans (called "alternative" loans) and apply for a government loan. File a FAFSA for 2007-08 as an independent student (at www.fafsa.ed.gov) and take out a Stafford loan. You will pay no more than a fixed rate of 6.8% and will not have to prove credit worthiness. If you file the FAFSA online it will only take a couple of days to process and in the meantime you can be filling out your Stafford loan application. Check with your school to see if they are a "Direct" lender or part of the "FFEL" program (Federal Family Education Loan" program.) If they are part of FFEL, you can shop around for lender. Certain lenders will discount origination fees and the interest rate by 2%-2.5% up front which can save you thousands over the life of the loan. If you file a FAFSA and apply with a lender within the next couple of days you have a chance of securing your funds by your deadline. But even if it takes a little longer, your financial aid office will likely let it slide since they know your loan is in process. Just make sure you are taking out a true Stafford loan that is guaranteed by the government and not one of the alternative loans.
