<p>Is there a big difference from going through Sallie Mae to get a loan or any other company?</p>
<p>Neither company can offer better interest rates, right, because that will come from your credit rating?</p>
<p>So should I just apply for a loan from one company or is it like scholarships and I want to try more than one avenue?</p>
<p>Everything depends on your preferences. Some companies offer more perks such as loan forgiving if you make you first 36 payments on time, while others offer initial loan forgiving just for choosing them as a lender. I know there's one company that offers you three loan reductions, one for signing up, one after a certain number of payments on time, and another after another set of payments. Also, some lenders pay your origination fee for you. You should look around, I haven't heard many nice things about Sallie Mae.</p>
<p>Sallie Mae is actually what I was initially researching. I didn't know they had a bad rep. Does anyone have any other companies that are supposed to be good for borrowing money?</p>
<p>I ended up choosing this one:</p>
<p>Wachovia / Education Finance</p>
<p>"Triple Payback" - Receive a rebate in the form of cash or credit in the amount of 3.5% of your Stafford loan's original principal by simply choosing Wachovia each year and taking advantage of the convenience of having your loan payments drafted from your bank account: (1) Immediate 1% rebate at repayment. (2) 12 months of consecutive scheduled on time auto debit payments, you will receive a 1% rebate of your original principal. (3) At 24 months you receive another 1.5% rebate to complete the triple pay. The savings could equal up to 4.70% for Stafford loans when incentive is credited back to the original principal amount.</p>
<p>Phone: (800) E D U C A I D
Website: wachovia.com/education</p>
<p>Do they loan to parents also? I mean, do they have other loans versus subsidized loans?</p>
<p>I don't know much about the parent loans, why don't you ask Collegeboard. I remembered when I did the CSS Profile that they asked my parents if they wanted to be considered for a PLUS loan so maybe they have more information on that. Other than that, I think it's easier and maybe better if the loans are in the student's name.</p>
<p>Stafford student loans, these are backed by the federal gov, they have a lower interest rate than parent PLUS loans, their payments can be deferred while they are inschool and they have a six month grace period after they either leave school or graduate before payments have to be made. Anyone who completes the FAFSA (financial aid form) will be approved for a Stafford loan. Depending on your "need" the financial aid officer will either offer you a Stafford unsubsidized loan (which means you pay the interest) or a Subsidized Stafford loan (the gov pays the interest on you behalf while you are inschool)</p>
<p>Parent PLUS loans are also backed by the federal gov, their interest rates are higher, they go into repayment 60 days after all the loan proceeds are disbursed.</p>
<p>Now - there are lenders all over the country offering all kinds of extra incentives for you to use their program - you really have to shop around and READ THE FINE PRINT -- Sallie Mae is but one of these lenders and I don't necessarily agree that Wachovia has the best program - look for a non-profit lender in your state and check out their programs - they are usually better than the for-profit lenders.</p>
<p>Again, once you find a program with benefits you like ask the question- "what do I have to do to earn the benefit ?" AND " what do I have to do keep the benefit? Is it permanent or can I loose it even after I have earned it?"</p>
<p>That is the "gotcha' on all of these benefit programs - it all looks really good and they all have the sales pitch down but what is the reality of you being able to even get one of these benefits and keep them?</p>
<p>BUYER BEWARE!</p>
<p>What are some examples of non profit lenders because I've been searching without any luck and I even tried checking with my school, but they had no idea what I was talking about.</p>
<p>Check out the website <a href="http://www.efc.org%5B/url%5D">www.efc.org</a> - this is the Education Finance Counsel located in DC that has a list of alot of nonprofit lenders in various states - go to their member listing and look for someone in your state.</p>
<p>If you are doing stafford or PLUS loans this is a great alternative - if you are looking to consolidate your loans you aren't not limited to your particular state program you can shop around to any non profit your want.</p>
<p>Thanks FinAidLD, but unfortunately my state isn't there. I guess it's up to Sallie Mae to finance my education. And now I'm going to have to take out two separate loans because I need more than the school thinks I do. I didn't know that the school really decides how much you get.</p>
<p>Just a couple of hot tips -- 1) school financial aid office is the final word on what your award package and financial aid package looks like--- before you head to an alternative loan did you consider the PLUS loan? Plus loan is still considered a federal loan and it is a far better alternative than a private, aka alternative loan because the interest rate will be fixed and you can receive other entitlements like school deferment, hardship forbearance, things like that; </p>
<p>And (2) there is a rule in effect right now called the "single lender' rule which basically says if all of your education loans are held by a single lender --if you decide down the road to consolidate your loans --you must stay with that lender - you can not go out and excercise your consumer rights to shop around for the best program with the best benefits - your are stuck with that lender --- so you might want to use more than one lender for your stafford and /or PLUS loans to prevent getting stuck in the future.</p>
<p>Isn't a PLUS loan only for parents to take out for their kids? If so, that won't work for me because I'm married. If not then I guess I've been getting the wrong information. I have already received Stafford loans subsidized and unsubsidized and the Perkins loan through the FAFSA. Will I be asked who I want my lender to be or should I tell the school myself? </p>
<p>I'm confused about federal loans. I can still apply for them if I didn't get them through the FAFSA or is that it?</p>
<p>First off there is a new version of the PLUS loan called the GradPLus that lets grad or professional students borrow under the old PLUS loan program.</p>
<p>Second - to be eligible for a Stafford student loan you must complete the FAFSA. At this point in time the FAFSA is not required for the parent PLUS loan but I believe it will be necessary to complete if you want to apply for the GradPlus loan.</p>
<p>At the point the college offers you the Stafford loan (or PLUS /GradPlus loan) you then tell them which lender you want to use - some schools will only use the feds as the lender (Direct Lending program) so you have no choice then.</p>
<p>FALD, is it true that Stafford Loans are only for the need based student? I am seriously looking at taking your advice and apply for a Federal Parent Plus loan. They do look a lot better than the Alternative Loan which have no variable interest rate cap!</p>
<p>I am also looking at Wachovia and the rebates they apply back to your loan. I think Jessy09 added this to our forum.</p>
<p>Doe anyone know of a better Federal Parent Plus loan?</p>
<p>FALD,</p>
<p>My son was "awarded" $2650 by UIUC. I'm not sure if this is a subsidized Stafford Loan, but I guess it must be that or another subsidized loan. If I take out a Parent PLUS Loan, can I consolidate this into one loan?</p>
<p>Your son, when he graduates, can consoidate all of his educatoin loans together and you can consolidate any of your parent PLUS loans whenever you want to - but you can not consoidate your sons loans with your parent plus loans.</p>
<p>PLUS loans recd prior to July of this year should be consolidated immediately to lock down their interest rate before it goes up -- if you are getting a PLUS loan for the fall you will get a fixed rate loan at the new fed rate as of July - not sure if that rate witll be 7.9 or 8.5 or somewhere in between but the urgency to consolidate will not exist after July - your primary purpose for consolidating after July 1,2006 will be to get an extended repayment term. i.e. lower monthly payments and to get multiple PLUS loans (or stafford loans) rolled into one big loan with one single lender and one payment - </p>
<p>Make sense?</p>
<p>FinancialAidLady: There are many states not represented by member organizations at the Education Finance Counsel wedsite. Florida is one of those without a member. What does that mean for a Floridian? Can we use a member in another state? What are the affiliate members?</p>
<p>Can you consolidate private loans, or are you pretty much stuck with the original terms for the life of the loan?</p>
<p>To answer a couple of these questions:</p>
<p>You can use other nonprofit organizations in other states and affiliate members if you want to if your state doesn't have a designated non profit lender. I know AES/PHEAA is doing alot in Florida so that might be an option to consider - they are a combination agency - part is non profit the other part is profit but they have some great materials and a good program. </p>
<p>You can consolidate private loans but all consolidation will do for these types of loans is give you more time to pay them back - which means more finance charges -if you need to do that then consider it = otherwise I would try to get any private loans paid off first and put any federal loans you have on hold (deferment/forb/ lowest possible payment) until you get the private paid off then put all your resources on the federal loans.</p>
<p>No you cannot consolidate your loans (PLUS) with student loan (Stafford).</p>