<p>Hello,
Today Citibank responded to my undergraduate private loan application with an interest rate of LIBOR + 9.5%. I looked at the historical rates(LIBOR</a> Rates History (Historical)), and this is usury! The median(typical?) historical LIBOR rate was 5-ish, yielding a likely interest rate of 14.5% per annum! And the highest was 9%+ LIBOR -- a possible interest rate of 18.5%+ on an undergraduate loan?! I may as well take Discover and Visa up on some of these credit card offers I keep tossing in the recycle, and pay with plastic instead!</p>
<p>I can't accept this loan. What other options do I have for financing the $16000+ for my year at school?</p>
<p>My application was completed with my father as a co-signer -- could applying elsewhere with my mother instead possibly make a difference?(my father has the higher income, and they're married and share all the debt anyway, so I am skeptical)</p>
<p>Should I skip on school for a year?--obviously this is not desirable! :( But the interest rate is murder. I would also enter repayment on my existing loans as well, no?</p>
<p>My next step is to apply to other banks, but I don't have any reason to think Citibank was just a fluke, so I'm not optimistic.</p>
<p>Any ideas?</p>
<p>Your parents could just take a Plus loan with a fixed 8.5% rate. Actually, I think Discover may charge a bit less than that for Plus based on recent experiences by other posters.</p>
<p>Thank you sk8rmom…
I will try. My parents were unwilling to do PLUS loan in the past, but I asked my mom tonight and she said, predictably, “Talk to your Dad.”</p>
<p>My dad is presently serving in Iraq, which makes it difficult to communicate and also explains why I’m doing this all by myself. I sent my Dad an e-mail and if he says OK then I guess everything is solved.</p>
<p>However, my brother just reminded me a half-hour ago of the new G.I. bill that allows servicemembers to transfer their education benefits to spouses or children. I did some research:
[Transfer</a> of Post-9/11 GI Bill Benefits to Dependents - (U.S. Department of Veterans Affairs)](<a href=“http://www.gibill.va.gov/GI_Bill_Info/CH33/Transfer.htm]Transfer”>http://www.gibill.va.gov/GI_Bill_Info/CH33/Transfer.htm)</p>
<p>I introduced this GI bill alternative in the e-mail I wrote to my dad, but I don’t know how to apply for it, nor do I expect my dad will have the time to figure it out himself in a combat zone – so is anyone on the site familiar with GI education benefits? The transferability is brand new this year, starting August 1, and I can’t find much information – how can I investigate whether this can aid me at all and for how much $$ it can aid me so I know what I still need to finance?</p>
<p>I’m skeptical whether the GI bill alternative can be of use, 1) because it is difficult to communicate with my dad, and 2) because it seems like August 1 is way too late to put off financing my academic year beginning later in the month.</p>
<p>Thank you.
Patrick</p>
<p>You can contact your institution and talk with their VA Officer. THe new Post-9/11 GI Benefits are still very new but there should be someone there that can help you get the paperwork completed. Just explain that your father is in Iraq currently. You may also want to look into whether your institution is participating in the Yellow Ribbon Program. It can help offset any of the costs not covered under the Post 9/11 GI Bill Benefits, if you qualify for the YRP. Again, the VA Officer at your school can let you know if they are participating and help you get the paperwork ready.</p>
<p>Patrick, there are other military families here on CC and I sent a PM to one such poster for you. Check back later or tomorrow as I don’t think they regularly post on the FA board. Someone will help, I’m sure.</p>
<p>Patrick, </p>
<p>Here is what I would do first thing tomorrow. Contact your base/post education office. Explain that your Dad is deployed. Every base/post has an education office. Go to the base web site and you will find a link to get you there. They will walk you through the procedure.
Meanwhile if you are up tonight you can go to whatever branch he serves in…i.e. [AF.mil</a> - Home](<a href=“http://www.af.mil%5DAF.mil”>http://www.af.mil) there will be a link explaining the GI bill and eligibility.
Second, when you speak to the education office ask them for any acholarship sites that they know of for military children, especially deployed.
Third, contact your school, because sometimes they allow you to postpone paying while the parent is deployed (this varies school by school), usually they give 6 months upon returning.</p>
<p>You will probably need in any of these cases your fathers orders to prove he is deployed, a current military id and a power of attorney (which was probably placed in your mothers care). Your Dad does not need to be there, because those 3 items negate his physical presence.</p>
<p>You might want to also talk to Family resources, they might also know additional low interest loans that you can apply for.</p>
<p>Here is the link from the AF web site
<a href=“http://www.af.mil/news/story.asp?id=123146820[/url]”>http://www.af.mil/news/story.asp?id=123146820</a></p>
<p>For some bases the link is found under newcomer or community</p>
<p>I would not contact the VA dept of your college unless it is a last ditch attempt, because they are still learning the regs. Contact the Bursar or the FA dept, since they are accustomed to questions about FA. Also contact the school directly to see if they can give you a Stafford or if the school has any FA scholarships/grants left. It does not hut to ask.</p>
<p>Forgot to add, what will probably happen is Dad will fill out the paperwork on line…so email him. If he can’t get to a computer, Mom’s POA will probably kick in and she can sign for him.</p>