Page 1 of 1

Loan from a family member or a federal loan?

Posted: Tue Mar 23, 2010 1:03 am
by fiftyonefifty
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?

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

Posted: Tue Mar 23, 2010 1:07 am
by xyzzzzzzzz
:P

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

Posted: Tue Mar 23, 2010 1:15 am
by Pro Boner
Take a loan from a nice Italian man at the pork shop.

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

Posted: Tue Mar 23, 2010 1:16 am
by vidhartha
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.

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

Posted: Tue Mar 23, 2010 1:28 am
by legends159
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.

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

Posted: Tue Mar 23, 2010 1:29 am
by Na_Swatch
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.

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

Posted: Tue Mar 23, 2010 1:31 am
by luckyjd
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"

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

Posted: Tue Mar 23, 2010 1:56 am
by Grizz
Pro Boner wrote:Take a loan from a nice Italian man at the pork shop.



--ImageRemoved--

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

Posted: Tue Mar 23, 2010 12:17 pm
by fiftyonefifty
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.