Crazy for looking at Variable Rates?
Posted: Mon Jul 02, 2012 7:54 pm
I'm looking to take about 30k a year in loans outside my stafford loans. From what I see, I have a few options:
-Grad plus fixed at 7.9% with origination fee
-fixed private loans (Discover/PNC/etc.) at ~6.5-8% with no origination fee
-variable private loans (all over) at ~ 3.5% up to 18% with no origination fee.
My plan (I know mice and men) is to pay off these loans within 5-8 years out of school. The difference between a near 8% fixed rate and a 4% starting variable rate is significant even at only 5 years out.
I just see everyone naysaying variable loans all the time. I have a good credit score and a co-signer with exemplary credit. The economy doesn't seem poised for a massive recovery in the next half decade, so is it reasonable to assume interest rates will stay below the fixed rate for the next 8 years?
Has anyone else taken out private variable loans over what looks to be horrendously expensive grad plus loans?
-Grad plus fixed at 7.9% with origination fee
-fixed private loans (Discover/PNC/etc.) at ~6.5-8% with no origination fee
-variable private loans (all over) at ~ 3.5% up to 18% with no origination fee.
My plan (I know mice and men) is to pay off these loans within 5-8 years out of school. The difference between a near 8% fixed rate and a 4% starting variable rate is significant even at only 5 years out.
I just see everyone naysaying variable loans all the time. I have a good credit score and a co-signer with exemplary credit. The economy doesn't seem poised for a massive recovery in the next half decade, so is it reasonable to assume interest rates will stay below the fixed rate for the next 8 years?
Has anyone else taken out private variable loans over what looks to be horrendously expensive grad plus loans?