LOANS

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stuckinparadise
Posts: 39
Joined: Thu May 26, 2011 1:45 pm

LOANS

Postby stuckinparadise » Sun Jul 24, 2011 4:01 pm

What is the interest rates on your federal loans? Are they the same for everyone? My gradplus loan is locked in at 7.9% which is pretty damn high. Is that the standard rate for everyone else... because if there is a cheaper way I am changing lenders.

TIA.

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JaLeCa
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Re: LOANS

Postby JaLeCa » Sun Jul 24, 2011 4:03 pm

yep. standard.

stuckinparadise
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Joined: Thu May 26, 2011 1:45 pm

Re: LOANS

Postby stuckinparadise » Sun Jul 24, 2011 4:04 pm

JaLeCa wrote:yep. standard.


:cry:

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JaLeCa
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Re: LOANS

Postby JaLeCa » Sun Jul 24, 2011 4:08 pm

Graduate and professional degree students can borrow a Direct PLUS Loan to help cover education expenses.

The terms and conditions applicable to PLUS Loans for parents also apply to PLUS Loans for graduate and professional students. These terms and conditions include:

* a determination that you (the applicant) do not have an adverse credit history; and
* a fixed interest rate of 7.9% for Direct PLUS Loans.

However, not at all sure that if you use a private lender it would be any better. Seriously doubt it.

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smokyroom26
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Re: LOANS

Postby smokyroom26 » Sun Jul 24, 2011 7:06 pm

JaLeCa wrote:Graduate and professional degree students can borrow a Direct PLUS Loan to help cover education expenses.

The terms and conditions applicable to PLUS Loans for parents also apply to PLUS Loans for graduate and professional students. These terms and conditions include:

* a determination that you (the applicant) do not have an adverse credit history; and
* a fixed interest rate of 7.9% for Direct PLUS Loans.

However, not at all sure that if you use a private lender it would be any better. Seriously doubt it.


I would run far, far away from private lenders. My experience with them (for UG loans) has been horrible. I wish I could slap my younger self for getting involved with Sallie Mae.

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kapital98
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Re: LOANS

Postby kapital98 » Sun Jul 24, 2011 7:25 pm

stuckinparadise wrote:What is the interest rates on your federal loans? Are they the same for everyone? My gradplus loan is locked in at 7.9% which is pretty damn high. Is that the standard rate for everyone else... because if there is a cheaper way I am changing lenders.

TIA.


Um... 7.9% is really good for the traditional law student. They typically have no collateral or income. A private lender WILL NOT charge a cheaper rate.

This scenario would be different if you were older and had a stellar credit history or have rich parents who will cosign private loans for you. In this situation turn down the federally guranteed loans and go with a private lender. Sadly, the vast majority of law students are lucky to have a guranteed 7.9% rate... :cry:

AppsAbound
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Re: LOANS

Postby AppsAbound » Sun Jul 24, 2011 7:28 pm

I have definitely heard of students getting a better interest rate than the standard federal 7.9, but private loans get incredibly expensive very fast if you ever default and there is generally little room for modification should times get rough. I think people prefer some of the security that federal loans offer. I can't vouch for their credit history, but most definitely worked prior to law school, though not for more than 2-3 years.

stuckinparadise
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Re: LOANS

Postby stuckinparadise » Sun Jul 24, 2011 7:33 pm

Well... when we graduate is there a way to re-consolidate the loans with a new fixed interest? My bro graduated law school and consolidated his loans with a fixed rate of 4.8% (average credit history too).

It was a long time ago, so he doesn't remember how it works anymore...

Also, he told me that because of this BS with America defaulting on their debt obligations, that interest rates are going to rise. I hope that's not true, because then when we graduate refinancing with a lower fixed rate might be impossible. :(

rcweedman
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Re: LOANS

Postby rcweedman » Sun Jul 24, 2011 7:43 pm

AppsAbound wrote: private loans get incredibly expensive very fast if you ever default

isn't this true of grad plus loans as well?

I don't know much about private loans but I'm guessing that their repayment plans aren't nearly as flexible as the federal loans.
Last edited by rcweedman on Tue Aug 16, 2011 7:00 am, edited 1 time in total.

rcweedman
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Re: LOANS

Postby rcweedman » Sun Jul 24, 2011 7:45 pm

stuckinparadise wrote:Well... when we graduate is there a way to re-consolidate the loans with a new fixed interest? My bro graduated law school and consolidated his loans with a fixed rate of 4.8% (average credit history too).

It was a long time ago, so he doesn't remember how it works anymore...

Also, he told me that because of this BS with America defaulting on their debt obligations, that interest rates are going to rise. I hope that's not true, because then when we graduate refinancing with a lower fixed rate might be impossible. :(

I know a guy who graduated law school 5+ years ago and consolidated all his debt at a really low rate too. 3.something I think.

rcweedman
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Re: LOANS

Postby rcweedman » Sun Jul 24, 2011 8:04 pm

He graduated 5+ years ago so maybe that rate is unique to the greenspan free-money era.
Last edited by rcweedman on Tue Aug 16, 2011 6:59 am, edited 1 time in total.

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Horsefeathers
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Re: LOANS

Postby Horsefeathers » Sun Jul 24, 2011 8:08 pm

Also - this is probably obvious, but - forget about getting any private law school loans forgiven. If you strike out with BigLaw, IBR/10 year forgiveness may very well be the best bet you have.




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