loan help Forum

[OhioU26]

Hey guys i am working on my loans for law school next year. I need to take out 16,000. The Stafford subsidized loan has an interest rate of 6.8%. Every place says private loans are only to be used when your federal loans are exhausted. If I can get a private loan with the interest rate below 6.8% should I just go for that? Thanks for the help guys

[Fark-o-vision]

I think the answer lies in the difference between simple interest and compound interest. Simple interest saves you a ton over time.

[dingbat]

Depends - what's the rate if the private loan?
Is it a fixed rate or a variable rate?
Are there any other stipulations attached?

Keep in mind that private loans might not have the same rules regarding deferment, IBR, LRAP, PSLF, etc.

You need to weigh the pros and cons of the private and federal loans and see which one makes more sense

[rinkrat19]

After Stafford, there are Grad Plus federal loans. Private loans are not your only resort after that $16k.

[dingbat]

After Stafford, there are Grad Plus federal loans. Private loans are not your only resort after that $16k.

Loving that 7.8% rate
I know hedge funds that don't expect that kind of return...

[cinephile]

You may want to exercise loan forgiveness options down the line that only apply to direct loans.