Loan from a family member or a federal loan?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
fiftyonefifty
Posts: 77
Joined: Mon Mar 17, 2008 1:49 am

Loan from a family member or a federal loan?

Postby fiftyonefifty » Tue Mar 23, 2010 1:03 am

Interested in public interest/government type law.

I have two choices, either take a personal interest free loan from a family member or go with fed loans.

I doubt I can pay off the personal loan in 10 years which makes the federal loan seem a lot more attractive. That is only if I get a government/education type job. What would you do?

xyzzzzzzzz
Posts: 463
Joined: Wed Jan 06, 2010 6:28 pm

Re: Loan from a family member or a federal loan?

Postby xyzzzzzzzz » Tue Mar 23, 2010 1:07 am

:P
Last edited by xyzzzzzzzz on Thu Jul 08, 2010 10:36 pm, edited 1 time in total.

Pro Boner
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Joined: Wed Aug 19, 2009 11:28 pm

Re: Loan from a family member or a federal loan?

Postby Pro Boner » Tue Mar 23, 2010 1:15 am

Take a loan from a nice Italian man at the pork shop.

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vidhartha
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Joined: Sat Feb 16, 2008 3:55 am

Re: Loan from a family member or a federal loan?

Postby vidhartha » Tue Mar 23, 2010 1:16 am

Problem to me is that there is no LRAP for the family loan. And if you are interested in doing PI/Govt and take out 180k in loans from family. How will you be able to pay that back? Maybe split the two? Take full Stafford and rest in family? Do you really want to see that loan every time you look at your family member? Maybe make it clear to them what your job interests are and the likelihood/length of repayment will be to them. They may think you're going to be a big shot lawyer and will have no problem paying off.

legends159
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Re: Loan from a family member or a federal loan?

Postby legends159 » Tue Mar 23, 2010 1:28 am

you have to report loans you're getting from family to the financial aid office and they might lower your federal loans or grants based on such information.

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Na_Swatch
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Re: Loan from a family member or a federal loan?

Postby Na_Swatch » Tue Mar 23, 2010 1:29 am

TCR: Take Federal Loans, then pay off the portion of the Federal Loans that are unsubsidized with your personal loans. This way you get both the benefit of subsidized loans, and the lower interest rate from your personal loans.

luckyjd
Posts: 239
Joined: Mon Jan 25, 2010 6:46 pm

Re: Loan from a family member or a federal loan?

Postby luckyjd » Tue Mar 23, 2010 1:31 am

Na_Swatch wrote:TCR: Take Federal Loans, then pay off the portion of the Federal Loans that are unsubsidized with your personal loans. This way you get both the benefit of subsidized loans, and the lower interest rate from your personal loans.


+1
Essentially a method to document your "family loan"

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Grizz
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Re: Loan from a family member or a federal loan?

Postby Grizz » Tue Mar 23, 2010 1:56 am

Pro Boner wrote:Take a loan from a nice Italian man at the pork shop.



--ImageRemoved--

fiftyonefifty
Posts: 77
Joined: Mon Mar 17, 2008 1:49 am

Re: Loan from a family member or a federal loan?

Postby fiftyonefifty » Tue Mar 23, 2010 12:17 pm

That is my issue, there is no LRAP for personal loans and if i'm interested in PI work.

Thanks for the info everyone. I will have to look into this further and weigh my options.




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