Best loans for meeting efc

Paying for College
1

<p>Does anyone have any suggestions for what the best loans are out there for meeting the cost of attendence after all other aid is applied? Even after all her aid and Stafford Loans are applied my daughter is still going to need $5,000-6,000 per semester this year.
Is Sallie Mae safe? (I don't have any particular desire to use Sallie Mae, just got something in the mail from them as was considering them.)</p>

<p>She's working 2 part time jobs this summer to try and put some $ away but will need a loan.</p>

<p>Any suggestions would be appreciated.</p>

2

<p>I would take a Parent Plus loan with a company that offers discounts, like Discover does . I don’t know what the rates are on private student loans now, but prefer to have the guarantees that federal loans offer. I would never do business with Sallie Mae - their mishandling and misdeeds with student loans, including unethical tactics to force borrowers into forbearance (thereby increasing their overall loan costs), are legendary.</p>

3

<p>I got that same mailing from Sallie Mae. The part that grabbed my attention was that you pay interest-only from day one, thus avoiding capitalizing 4-1/2 years worth of interest. That sounded like a good thing…</p>

<p>sk8rmom: Would you please elaborate on “mishandling and misdeeds”? Also, how do they force borrowers into forbearance? Thanks!</p>

4

<p>Failure to notify of terms or payments due, selling loans without notifying borrowers where to send payments, obnoxious or nonexistent customer service, misprocessing payments, even denying any loans exist (sometimes for extended periods of time) and then tacking on huge fees for penalties and interest, etc. causing the loan and, of course, the payments to snowball.</p>

<p>I haven’t had any loans with Sallie Mae, but have heard from others and read (see links below) so many horror stories about them that I personally wouldn’t take the chance. But I don’t take a chance on mortgage companies or car dealerships either without checking them out first either. I just don’t feel like it’s worth risking my peace of mind to save a little money. </p>

<p>Many of the stories told in the Voices section of Project on Student Debt’s site are related to Sallie Mae - even though some of these people clearly overborrowed, the tactics used to harass them and strip them of any dignity or chance of a life outside poverty are pretty bad. Can you get blood from a stone? Apparently, Sallie Mae thinks so and has used predatory practices to become the largest pig at the trough (which also made them a target for NY Atty Gen Andrew Cuomo in the bribery case settled last year)! Please keep in mind that some of these are federally guaranteed loans, so SMC has been paid - or overpaid, as I believe they’re at the top of the list for overbilling the feds too. What is the point of tacking on usurious penalties and fees escalating a $30K debt to an $80K debt for a disabled person, or one who has no ability to make the monthly payment of the $30K in full? </p>

<p>Private loans will never be eligible for income based repayment or forgiveness. Congress has handed private lenders a “wild west” opportunity to make it up as they go along by exempting them from the normal rules governing debts and debt collection. As education loans cannot be discharged through bankruptcy, except in extreme cases, those who truly have devastating problems are living under the gun. Note how many of these folks mention suicide as an attractive option. </p>

<p>YMMV - but let the borrower beware and make sure to keep every scrap of paper and make note of any conversation with their lender, especially if it’s Sallie Mae!</p>

<p>[Putting</a> Students in Harm’s Way | New America Blogs](<a href=“http://www.newamerica.net/blog/higher-ed-watch/2008/putting-students-harms-way-8026]Putting”>http://www.newamerica.net/blog/higher-ed-watch/2008/putting-students-harms-way-8026)</p>

<p>[Student</a> Loans Sucker Kids into Oppressive Debt | The Consumer Warning Network](<a href=“http://www.consumerwarningnetwork.com/2009/01/05/student-loans-sucker-kids-into-oppressive-debt/]Student”>http://www.consumerwarningnetwork.com/2009/01/05/student-loans-sucker-kids-into-oppressive-debt/)</p>

<p>[Sallie</a> Mae Misrepresenting Status of Student Loans | The Consumer Warning Network](<a href=“http://www.consumerwarningnetwork.com/2008/05/14/alert-sallie-mae-misrepresenting-status-of-student-loans/]Sallie”>http://www.consumerwarningnetwork.com/2008/05/14/alert-sallie-mae-misrepresenting-status-of-student-loans/)</p>

<p>[Project</a> on Student Debt: Voices](<a href=“http://projectonstudentdebt.org/voices_list.php]Project”>http://projectonstudentdebt.org/voices_list.php)</p>

5

<p>Here are some additional links to help you evaluate your choices:</p>

<p>[FinAid</a> | Loans | Loan Tradeoffs - Public vs. Private](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid)</p>

<p>(Note that Plus loans are fixed rate loans, repayment can be deferred while the student is in school, and are dischargeable by death/disability)</p>

<p>[Student</a> Loan Borrower Assistance](<a href=“http://www.studentloanborrowerassistance.org/]Student”>http://www.studentloanborrowerassistance.org/)</p>

<p>[SafeBorrowing.com…The</a> Place to Shop Before You Shop.](<a href=“http://www.safeborrowing.com/student/home.shtml]SafeBorrowing.com...The”>http://www.safeborrowing.com/student/home.shtml)</p>

<p>For evaluating loan discounts:</p>

<p>[FinAid</a> | Loans | Student Loan Discounts](<a href=“Your Guide for College Financial Aid - Finaid”>Your Guide for College Financial Aid - Finaid)</p>

<p>A report that gives some analysis of Sallie Mae loans and the private SL industry, as well as a decent overview of how it came to be:</p>

<p><a href=“http://www.studentloanborrowerassistance.org/uploads/File/TooSmalltoHelp.pdf[/url]”>http://www.studentloanborrowerassistance.org/uploads/File/TooSmalltoHelp.pdf&lt;/a&gt;&lt;/p&gt;