Fed Financial
Private student loan advice?
Do you know of any good student loan companies/programs in NC? I'm about to take out a private student loan through Chase/JP Morgan. 13,000 dollars total at 8.49% orgination fee(Ouch). 11.54% APR(Ouch Ouch). I've opted to pay interest only while in school. I've done the FAFSA thing and am getting grants but need more cash on hand to focus completely on school and grades instead of dividing my time between school and work. My community college isn't authorized by the federal govt. to work with students on any loans whatsoever so it's just me and my credit worth cosigner at this point. Can you save me with your great advice?
Public Comments
- How is your credit? Most companies these days only hit students with origination fees if they are "high risk" borrowers. If your credit is decent or if you can apply with a cosigner, you should be able to get a 0% fee loan with rates a lot closer to the prime rate (about 9%). Of course, the fact that you were approved on your own is a good sign; plenty of students can't get past that step. I like the following private loans: Sallie Mae's Signature Loan: http://www.salliemae.com/get_student_loan/find_student_loan/undergrad_student_loan/private_student_loans/community_college_loan/community_college_loan.htm (there is also a Signature loan for non-community colleges) Citibank CitiAssist Loan: http://studentloan.citibank.com/slcsite/fr_ccund.asp Bank of America's Private Loan: http://www.bankofamerica.com/studentbanking/index.cfm?template=stb_get_student_loan TERI (you can choose from several lenders): http://www.teri.org/loan-center/loan-programs/undergraduate/undergraduate.asp A colleague of mine also recommends Key Bank's Alternative loan: https://www.key.com/html/H-1.32.b1.html Now, most of the above loans will require you to either have OK credit or to apply with a credit-worthy co-signer. It's important to note that every private student loan you apply for is a small "hit" on your credit report, so you should not apply for loans indiscriminately. Read the eligibility criteria for each loan and pick one that plays to your strengths. If you can't get a better deal with them, you COULD shop around some more. However, if things don't look much better, you might be better off taking the Chase loan *this* year and trying for a different loan next year.
- Go to daveramsey.com and ask him the question. He knows all about these things and is an honest man.
