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Budget Dracula, congratulations! lordofokra, you can try a couple of different things. First call your federal loans servicer (ACS) and ask them about lowering/pausing payments for a while. Make sure to mention your private loan balances so that they can use them for their calculations. If you can get a lower payment, use the money you save to pay more toward the private loans. Then, look into private loan consolidation. Wells Fargo is the company several people in this thread have recommended, but you might find others at simpletuition.com. Unfortunately those do require a credit check, so you need to have good credit or a good cosigner. traveling midget, yerp! The special consolidation is more of a servicing consolidation than a loans one. Momonari kun, pay that poo poo off and run away, laughing and flailing your hands at the sky. And congratulations! Just make sure you get a payoff from the servicer, you may already have some interest you'll need to satisfy. modig, there are peer to peer lenders out there you could check out. Just google "peer to peer lender". You could also contact an accountant or legal service to determine what documentation you should get. I am not sure if a bank would get involved in this sort of transaction, but I am not a banker so I could be very wrong. It can't hurt to ask!
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Jul 10, 2012 02:54
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Wiggy Marie posted:
Sorry, but what is a payoff from the servicer? Not really sure what that means.
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Jul 10, 2012 03:52
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Momonari kun posted:Stupid question, but I'm about to pay down all my Sallie Mae loans to the tune of $9700. My monthly payment has been about $160 a month, but I don't want to pay interest, so I'm going to pay it off now. Any things I should consider or should I just send the check? The only thing really to consider is the student loan interest deduction on your taxes. Hopefully you get the max $2500 (single) if you're paying it all off. Not that it's worth delaying payment to claim this deduction since it still costs you money but it's a nice little prize come taxes. Congrats on not becoming an indentured servant!
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Jul 10, 2012 13:11
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I'm in the process of applying for my student loans. I'm just full of so many questions (or trepidation). I'm going to art school. My school estimates my cost of attendance at $51,927, with $17,300 supposedly awarded in aid. I have a bit of aid coming in from scholastic achievement, but i haven't completed anything for consideration in artistic achievement. I will complete it soon though. So i guess my loans would come out to 34,627 after the fed loans and grants. Am i requesting that amount for the year? There's a murkyness to this, but i haven't spoken to anyone on the phone about this. edit: my school is SCAD, by the way. oh art school 
The Modern Sky fucked around with this message at 17:41 on Jul 10, 2012 |
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Jul 10, 2012 17:28
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I've read a lot and I'm not entirely sure what the answer is, so I was hoping somebody could clear this up for me. I am leaving my job on 12/31 of this year and will be returning to school FT in January of 2013. I am currently 23 years old, and will be 24 in May of 2013. I will be living with my father, but I am going to be responsible for all costs associated with supporting myself with the exception of housing. This means that I am considered independent, correct? Even though my father makes good money, will I still be eligible for Stafford loans and Pell grants since I will be independent and have no income?
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Jul 10, 2012 17:42
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For aggregate limits on Stafford loans and such, is it by your school year or year of having loans out? I'll be transferring to a 4 year from a CC, but if I take more than 10 hours of classes in the spring, plus what I have from online classes I took because they interested me and were easy because of transportation problems, I'll apparently transfer in as a senior. I'll probably need like 2-3 years of classes there to get my actual degree so I'm a bit worried there, if I hosed up taking so many classes at the CC. Haven't needed loans as Pell grant + NC funds have been more than adequate for the CC, but not for NCSU.
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Jul 10, 2012 18:54
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Understanding posted:I'm in the process of applying for my student loans. I'm just full of so many questions (or trepidation). I'm going to art school. SCAD being Savannah College of Art and Design?
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Jul 10, 2012 20:15
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blar posted:The only thing really to consider is the student loan interest deduction on your taxes. Hopefully you get the max $2500 (single) if you're paying it all off. Not that it's worth delaying payment to claim this deduction since it still costs you money but it's a nice little prize come taxes. Ah, I'm overseas so I don't pay tax on my income. Guess I'll send that check then.
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Jul 10, 2012 20:45
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I graduated with a BA in May '11 with a whole bunch of debt, both private and federal. I did a special consolidation with Great Lakes so they have all of my federal loans except for the Perkins, which ACS still has. I hate hate hate ACS and do not even want to attempt asking for a deferment with them, so right now I'm paying off my Perkins while my other federal loans are in deferment. I am pretty content with this situation. My loans with Wells Fargo are another story. There is no way in hell I can afford the payments they're asking for and no one in my family can co-sign for a consolidation due to terrible credit. I talked to them today and they said there was no way for me to lower my payments and to basically just deal with it. Is there anything they're not telling me? What on earth can they do to me if I don't make the full payment every month? I don't really care about credit scores right now because at this rate I will never be able to afford a car or home anyway. I pay what I can. I plan on joining the Air Force in about a year even though I have my dream (terribly paying) job in the field I graduated in because this crushing debt is destroying my independence and my family is struggling a lot as well, so I need to change my career prospects to earn more money. Because of this, I believe it is in my best interest to be in the clear with federal loans so they aren't taking away from my paycheck or anything. I was always told that private banks can harass you and trash your credit but they can't actually take anything away from you. Should I continue just paying as much as I can with my private loans? Will this completely screw me over in the long run?
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Jul 10, 2012 21:00
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mastershakeman posted:SCAD being Savannah College of Art and Design? Yep. Was super psyched to get accepted until i read that article on worst schools for the money. not that it really phased me, but i kinda know i have to work my rear end of to get anywhere.
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Jul 11, 2012 03:18
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God I hate ACS Education. Is it impossible to pay extra to the principle of my loan? All they do is keep rolling back my payment date. UGH Would be better to take out secured loan at 4 percent and use it to pay off ACS than deal with this crap.
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Jul 11, 2012 03:43
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Momonari kun posted:Sorry, but what is a payoff from the servicer? Not really sure what that means. Payoff, as in you need to contact them and have them give you a final bill. You accrue interest daily, so if you just send a check for the amount it says online you are going to end up still owing them a small amount for the interest.
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Jul 11, 2012 05:45
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Captain Apollo posted:God I hate ACS Education. Is it impossible to pay extra to the principle of my loan? All they do is keep rolling back my payment date. UGH I'm pretty sure there's a way to reset your payment date to the next month. On the individual loan detail page, upper-rightish corner, it should say something like "In repayment, [date]" or something to that effect in red text. Above that should be a link for resetting the due date. It's been a few weeks since I've seen that though, which of course makes me wonder if they've stopped allowing people to do this online. I know a few years ago I tried doing what their FAQ said to do and mailed in a physical check with coupon and written note stating to apply the extra to my principle. Yeah....they didn't bother reading the note. This month I paid off one of the two loans I had with ACS. I'm keeping the last one on the stupid Checkmate II thing because it mysteriously keeps my interest rate at 4.8% instead of it's actual 6.8%. The extra payments I make are via their express pay link. Only 14.5k to go 
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Jul 11, 2012 05:57
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abagofcheetos posted:Payoff, as in you need to contact them and have them give you a final bill. You accrue interest daily, so if you just send a check for the amount it says online you are going to end up still owing them a small amount for the interest. Ah, good thinking. I'll do that tomorrow.
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Jul 11, 2012 07:56
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Schlaflosigkeit posted:Should I continue just paying as much as I can with my private loans? Will this completely screw me over in the long run? The Air Force isn't going to let you in (or let you stay in) if you quit paying any loans. This includes federal and private. They're actually really hardcore about stuff you wouldn't normally think an employer should care about. You should do more research and talk to people who are in the know about this, if this is something you're serious about. I'm also not sure why you think the Air Force is going to give you more money than what you're making now? samizdat fucked around with this message at 08:44 on Jul 11, 2012 |
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Jul 11, 2012 08:39
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I don't plan on stopping any payments, just paying what I can from month to month which will never be the scheduled monthly amount. I decided on the Air Force because it is the one area I do feel I am well-advised on - every member of my immediate family has served in the military in one way or another, and my father and Uncle are retirees from the Air Force. It will also pay about three times the amount I make now (going in as an officer). From what I understand, bad credit will not prevent joining if there is a reasonable explanation, i.e. it was either give Wells Fargo half of what I make every month or starve. Student loans are also a lot different from going on a shopping spree and not paying your credit cards off. I guess I kind of answered my own question though, there is nothing I can do unless I miraculously start getting paid more.
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Jul 11, 2012 17:52
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Schlaflosigkeit posted:I guess I kind of answered my own question though, there is nothing I can do unless I miraculously start getting paid more. In this case, is there a good reason why you're waiting a year? Your situation can improve quicker. (My boyfriend is a Sergeant in the Air Force, it's worked out pretty good for him.)
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Jul 12, 2012 05:59
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Hi there, Ontario Canada goon here, I have some quick questions. I graduated spring 2011 and was working some internships and contract work for a while so things have been okay but I've fallen on hard times and I'm getting buried in Student Loan payments. I have a $40,000 student line of credit with CIBC that I pay about $220 a month just in interest on, plus an OSAP loan payments of $186 a month. Between the two this is killing me. I know I can apply for Repayment Assistance for the OSAP loans but is there anything I can do for the line of credit? Thanks!
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Jul 12, 2012 09:17
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I have just under $40,000 left on my federal student loans at 6.55% (after autopay interest deduction). I know that it is possible to consolidate the federal loans, but it looks like all they do is take the weighted average and make it into one payment, which since they're all the same rate and one payment already, would do absolutely nothing for me. Is there any lender that would refinance the federal loans or am I just screwed paying the 6.55%? It seems like interest rates are lower for everything (cars, mortgages, etc.) except credit cards but I know student loans are different since there is no collateral. I have a decent 401(k) and my car is worth more than I owe, would it be possible/worth it to take loans out against them to get into a lower rate? I'm not having trouble making the payments, just trying to get this interest down because as it stands I'm paying like $250 a month in interest which I know isn't as bad as some but it's really annoying to me to have almost half of my payment go toward interest.
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Jul 14, 2012 18:22
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Understanding, I know this might not be what you want to hear but have you considered somewhere else? Honestly, you cannot take out that amount in student loans as an undergrad, so you'll have to look at private loans, and you do NOT want that much in private loans. If you happen to be a grad student, you can use the GradPLUS federal loan, which is at least a little better. Butt Soup Barnes, yes. When you file your FAFSA you will need to include your income for 2011 (not 2012), and you do not need to include your parent's information. The question on the FAFSA will literally just ask if you were born before a certain date; if the answer is yes, you're automatically independent. Also, yes you can still get Pell etc., so long as you haven't used up eligibility. Schlaflosigkeit, unfortunately no. Private loans are not nearly as forgiving as federal loans. One thing you might want to look into is calling your fed loans servicer and talking to them about a lower payment, to help you afford your private loans. Hit them as hard as you can until they're gone, then focus on the federal ones. Captain Apollo, any time you pay above the accrued interest the extra goes toward principal AND they put you into what's called "paid ahead" status. Servicers have the ability to remvoe paid ahead from your account, but you can also just keep paying, it won't hurt you either way. Also, because of the difference in payment terms, I would say no to taking out a different loan to pay these off. But that is an option if you like. Moist von Lipwig, unfortunately I know nothing about Canadian student loans but one of our Canadian goons was kind enough to create a write up that's been put into the OP. Please check it out, I hope it helps you! The Agent, that's pretty standard, payments are disclosed to roughly go half and half to interest versus principal. As I mentioned above, I don't normally recommend taking out different kinds of loans to pay these off because there's a lot of benefits to them that you don't get with other loans. But it's a possibility for people who can afford it and would be a better deal.
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Jul 15, 2012 20:57
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Wiggy Marie posted:The Agent, that's pretty standard, payments are disclosed to roughly go half and half to interest versus principal. As I mentioned above, I don't normally recommend taking out different kinds of loans to pay these off because there's a lot of benefits to them that you don't get with other loans. But it's a possibility for people who can afford it and would be a better deal. Maybe I'm dumb, but what benefits are there to the federal loans? Apart from being unable to discharge them during bankruptcy I didn't know they were much different than property loans (apart from not having collateral). You mention refinancing might be an option, any advice on where to start or who to ask about it?
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Jul 17, 2012 05:39
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For federal loans, all consolidation is through Direct. As for benefits, there's the interest claims for one (similar to mortgage interest on taxes). But the real benefits are in repayment. There's no less than 5 repayment plans available on any given loan, and if you can't make payments for some reason there's a ton of deferment/forbearance time available to pause payments when needed. It takes a while (three years) to run out of the easiest forbearance to qualify for, so all in all these loans are much more forgiving than others in terms of repayment. Also when they're in deferment/forbearance they just report as current on your credit, so it still helps to build your credit in the meantime.
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Jul 17, 2012 23:47
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Hi everyone. I have roughly 59k in student loans from Sallie Mae and 60k in federal loans. I am currently doing a 2 year interest-only plan with Sallie Mae because I wasn't making anything when my loans went into repayment; however, I am doing pretty good now and would like to change my payment plan to the standard plan. My interest-only expires in February 2012 and at that time my payment will go from $292 per month to about $500 per month. Since I can afford that $500 payment right now I thought I should just go ahead and change the plan, but wanted to consult with everyone here first to make sure there is nothing I need to be aware of when doing this. Is there any reason why I should wait? Thanks for your help.
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Jul 18, 2012 16:57
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There's no reason to wait at all, and you can actually just stick with your current payment plan and make whatever amount of payments you want. The only thing to know about is that when you start making larger payments your due date will slowly start to extend into the future. You have two options: ignore it and keep making your payments regularly, or call the servicer and tell them you don't want your higher payments to affect the due date. They should be able to turn the paid ahead feature off. One other thing: you can set up your autodebit payments for however much you like and just never think about it again. Also, many servicers offer a .25% interest rate reduction for using it, so it can save you some money in the long run.
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Jul 19, 2012 00:44
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Okay, good to know. I feel like I can never get a straight answer when I actually speak to someone from Sallie Mae. I currently do auto payments through the my credit union, but will look to see if SM offers any interest rate reduction for paying through their site. Thanks!
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Jul 19, 2012 04:21
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Been reading a lot of this thread, and I'm highly appreciative of the advice that has been given by Wiggy and others. I feel rather obligated to post my story though so people can learn from me, as well as get a bit of advice. Similar to a few people, did not get a lot of federal help due to my parents making a large amount of money and I have accumulated around $65k in Private debt (AES / PNC Private Loans) for (sigh) and undergrad program.. Not a smart decision, but was hoping that I could get a job really quickly and continue to pay off like any normal person. I also have just over $10k in Federal Stafford Loans. My stafford loans I have been on an IBR, so they haven't been the problem, but the AES loans have been the source of my problem. My payments are rather large for my current income (around $800), and have been deferred for 6 months. I now have been starting to pay my loans, and it's just been draining me to nearly a 0 amount every month. I've learned to deal with it and have made drastic lifestyle changes/ picked up a secondary job to supplement my full time. Anywho, that's the short version of the story. Googling Private Loan Consolidation and going for a few different consolidation loans and getting declined, I've determined that I'm pretty much stuck with AES and their inflexibility to work with me for the loans. So, I throw a hail mary and ask for any advice on here. My current plan has me living at home and just trying to put all my income towards paying my private loans until I can a) Find a consolidation loan that works and may offer a flexible repayment plans, b) Hope for some sort of government plan to take over private loans, c) Hit the lottery d) Get a better job (applying for new jobs every day!) or e) other All seem rather.. farfetched at this point Thanks for any possible advice/ hope folks can learn from my mistakes. Stellar_GoPens fucked around with this message at 16:44 on Jul 19, 2012 |
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Jul 19, 2012 16:38
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Stellar_GoPens posted:Googling Private Loan Consolidation and going for a few different consolidation loans and getting declined, I've determined that I'm pretty much stuck with AES and their inflexibility to work with me for the loans. So, I throw a hail mary and ask for any advice on here. My current plan has me living at home and just trying to put all my income towards paying my private loans until I can a) Find a consolidation loan that works and may offer a flexible repayment plans, b) Hope for some sort of government plan to take over private loans, c) Hit the lottery d) Get a better job (applying for new jobs every day!) or e) other All seem rather.. farfetched at this point The government is very unlikely to assume private student loans barring some very radical polical changes. More likely, and this is just speculation, private loans might end up dischargeable in bankruptcy or given more generous forbearance terms - neither of which will help you legitimately pay them off. Your current options with private loans are to either adjust your lifestyle to make legitimate payments or adjust your lifestyle to dodge your creditors and hope to make it through your state's statute of limitations where the debt is no longer enforceable (usually 5-7 years of non-payment). Just don't let your federal loans go into default because the US government is the most powerful debt collector you can have chasing you. Keeping your federal loans on IBR while you are unable to make regular payments is a great idea. Your payments will be tied to your income, worst case the debt is discharged after 25 years, and interest accrues but does NOT capitalize into the principal which will save you money long-term. Good luck. GamingOdor fucked around with this message at 15:12 on Jul 20, 2012 |
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Jul 20, 2012 15:04
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Ugh. I just got off the phone with Direct and they were completely unhelpful and didn't answer any of my questions so I was hoping some of you smart goons could help me. Mine and my spouse's loans have been in IBR repayment for 2 yrs. Recently my husband has been home on short term disability and I am only working part time until school starts again. I called to get my loans put on forbearance until October so we could make it through the summer and take care of his medical expenses until I start subbing again and get my first full paycheck at the end of October. I have two loans, Loan A: $16,429 and Loan B: $22,757 Today I received a letter stating that my forbearance from 7/14 to 10/14 has been approved but it goes on to say "Since your last statement was provided to you on 07/14/12, additional interest has accrued in the amount of $1,752 for loan B and $193.07 for loan A. If no payments are made during your forbearance period, estimated accrued interest in the amount of $2006.78 for loan B and $524.59 for loan A will be capitalized on 10/14/12. If you are repaying under IBR and have a partial financial hardship when the forbearance ends, interest accrued during the forbearance period will not be capitalized until after your partial financial hardship ends or you leave IBR." First, I couldn't understand how I have accrued that much interest in 30 days unless they are capitalizing all of the interest that has accrued the entire time the loan has been in IBR. Am I having to pay all of this extra money now that I wouldn't have had to if I had just kept paying instead of putting it into forbearance? Second, the woman on the phone didn't/couldn't explain to me what partial financial hardship means or how I know if I have one. Reading the Dept. of Ed. website made it sound like just being on IBR proves you have partial financial hardship and they won't capitalize your interest ever if you go into forbearance under IBR so it confused me even more that they were sending me this notice. Third, if I do have partial financial hardship, how do I show evidence of that so I don't get screwed and have to pay an extra $2600 just for going into forbearance? Please help goons. Did I screw myself by putting my loans in forbearance?
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Jul 24, 2012 06:26
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I'm going to have to take out a minor loan (Around $3,000) to pay off the rest of my college this semester, I should be fine until I graduate after that, I just want to guarantee I have the money I need. I need to get my car fixed which could cost anywhere between $100 and $1000 so I'm getting a little extra to fall back on, since I've had a steady job for 2 years now but I'll run into a bit of a problem if I have to pay for classes + car repairs at the same time. It's going to eat my savings in one fell swoop. Now, since I work in a Business/Finance office, I've been talking to some co-workers who are much older and wiser. A lot of them are telling me that instead of taking student loans, I'd be much safer taking out a direct loan from a local banking branch, which the tradeoff being a percent higher than a student loan, but having it completely disappear in case I need to file bankruptcy (Which could be a possibility for a college student living in a state with almost no jobs). Can anyone give me some more solid advice on taking a bank loan over a student loan? Generally, how much am I looking to be paying back into per month? It's not a huge amount and I'm sure a lot of people would kill to have only $3,000 in debt after college. e: Some extra information I have a steady job, with good job security. It sound a bit silly, but I'm a student worker, but I've secured a permanent position until graduation. When school isn't in session, I'm bumped up to part-time employee with 40 hours/week. While school is happening, it's part time at 20 hr/week. Either way, I get paid $9.50 an hour. I don't spend more than $150 on bills every month so the rest of my paycheck is spending money. I'm not sure how tight my budget will get during school if I've got to make additional $100 payments on a loan. RealFoxy fucked around with this message at 13:44 on Jul 26, 2012 |
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Jul 26, 2012 13:25
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Ring of Light, good gracious that sounds complicated! And it figures that the representative didn't explain things in any meaningful way. Ah Direct, you were always the best! Anyway, the qualifications for a "partial financial hardship" are actually listed on the IBR form (or should be), so I would suggest looking up the application and reading through it for some guidance. Your situation seems like it would qualify but I'm no IBR expert and I'd hate to steer you wrong. Hopefully our resident phone counselor will pop in and enlighten us both on wtf. As for the interest, your hypothesis is correct: they've sent a notice which includes ALL of the interest which has accrued over this time, and when loans come off of a forbearance that interest will capitalize - except in a situation like a hardship, which is clear as mud! If you log in to your student loans account with the servicer or the NSLDS you should see your accrued interest reported to get an idea of the daily totals you're looking at. Flameingblack, it's true that the benefit to a normal loan versus student loans is that they can be discharged through bankruptcy, but honestly there are many more benefits to federal loans versus a private loan, such as deferments and forbearances when you're experiencing a hardship. Also, the ability to claim the interest on taxes (as long as your income isn't super high) and it looks better on a credit report than a straight private loan. Also, student loans have a ton of payment flexibility compared to a private bank loan. The way I put it is this: if you take out a private loan, you're basically taking out a credit card, and all the stipulations that credit cards come with. A student loan is a federally guaranteed loan, and the government really doesn't want you to default so there's lots of programs built in to try and help. Ultimately your payments would probably be similar but with more flexibility on the student loans. It's up to you, but I've heard our reps literally begging students or parents to take out a federal loan instead of a private loan. Seeing the servicing end of our own private loans makes me lean toward federal any day, but people still use private loans all the time. It's all up to borrower discretion.
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Jul 28, 2012 03:57
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Hello friends! SAL has been moved to under A/T instead of D&D, so I have moved you all from BFC to SAL, which I think is the more appropriate forum given the education aspect.
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Aug 2, 2012 03:47
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I'm a 25 year old transfer to a local state school and I was offered 9500 in Direct Stafford loans. Unfortunately, this won't cover my rent, other expenses, etc. I was wondering if I'm able to take out any other federal loans before I start shopping banks for private loans?
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Aug 2, 2012 04:41
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Why have I only been offered $1,000 per semester in unsubsidized federal loans by my school? I thought those weren't based on financial need.
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Aug 3, 2012 02:15
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Eggplant Wizard, thanks! nbzl, I've cleared out my PMs if you wanted to try to send me a new message! Anyway, assuming you're an undergraduate student, unfortunately no, there's nothing other than private loans available. Are you able to work and help pay some bills to avoid taking out a big private loan? slogsdon, it depends on your EFC versus your cost of attendance. For example, if COA is 5000 and your EFC is 4000, you get 1000 in federal aid. You can always call the financial aid office to ask them for the exact numbers and file an appeal to see if you can get any more loans.
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Aug 3, 2012 02:24
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I'm looking to get a private student loan since I'm considered a non-degree seeking student. Two quick questions... 1. Is it a bad idea to apply for several private student loans at once? What I mean is, I remember reading something about multiple credit checks in a short period of time being a bad thing. Is there anything like that with applying for multiple private student loans? 2. Out of Chase, Citibank, US Bank, and Wells Fargo, which would you guys recommend for a private student loan?
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Aug 5, 2012 21:37
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Any clue about how long the Special Direct Consolidation Loans might take to process? I applied for one back in June, was told that Nelnet is taking care of it, but the loans I wanted to consolidate are still being serviced by the old company (CFNC). Since Nelnet's site doesn't recognize me when I try to sign up, I'm just assuming that this will be along, drawn out process and it will take forever for my loans to be all rolled into being Direct Loans.
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Aug 6, 2012 01:44
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Looks like my Direct Loans got transferred to Aspire and I think my interest rate went up. Why would they do this? I've never missed a payment or anything...
COUNTIN THE BILLIES fucked around with this message at 17:24 on Aug 6, 2012 |
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Aug 6, 2012 17:06
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Sorry if this is a dumb or bad question, but I didn't see it on the first few or last pages. I'm going to need private student loans (probably going through Wells Fargo) and I'm not sure if I want a variable or fixed rate. The WF agent I spoke with recommended fixed because "who knows what's going to happen with the economy in 15 years." But I don't trust bankers. The internet has mixed information, and I also don't trust the internet. But I trust Something Awful. So what's the real scoop?
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Aug 7, 2012 13:58
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Synonamess Botch posted:Sorry if this is a dumb or bad question, but I didn't see it on the first few or last pages. Ultimately, you are rolling the dice either way. You will be able to get a lower initial rate on a variable rate loan, but if interest rates pick up a few years down the road you are in trouble. If the rates don't come back up before you repay a variable rate loan, you win, otherwise you lose. The longer your planned repayment period, the better a fixed rate loan looks in today's low-interest environment. Though, if you need private student loans in the first place it generally means you can't really afford where you're going. Unless these loans are very small and supplemental to deal with a high cost of living area, or you are going into a near-guaranteed highly lucrative field (there aren't many!), you are going to be hosed down the road.
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Aug 7, 2012 14:50
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baquerd posted:Ultimately, you are rolling the dice either way. You will be able to get a lower initial rate on a variable rate loan, but if interest rates pick up a few years down the road you are in trouble. If the rates don't come back up before you repay a variable rate loan, you win, otherwise you lose. The longer your planned repayment period, the better a fixed rate loan looks in today's low-interest environment. They're not really, it's going to be about $15 thousand/yr for the next two years to cover tuition at a private university, less $9,000 in stafford loans and a $12 thousand scholarship. I am studying physics with a co-op and I am not honestly confident about job security. That said, I'm not in a position to back down from this so if I'm going to get hosed I at least want to use some lube.
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Aug 7, 2012 15:53
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