<p>What non-need-based loans are available for full time undergrad students? </p>
<p>There's the unsubsidized Stafford loan, but that's capped at a few thousand.
Considering most schools I'm looking at are about 47k/yr total cost, that leaves over 40k/yr. My parents will pay 15-20k/yr AT MOST. So that leaves a gap of about 35k/yr. (My family's "too rich" for financial aid.) I'm definitely going to work to pay off a bit myself, but that's not going to make much of a dent.</p>
<p>So what other low interest student loans are there to cover that $35k/yr or $140,000 total? (It'd be really helpful if you guys noted the typical interest rate of the loans too.) Both parents have really good credit if that helps. (I myself have no credit history...)</p>
<p>Oh, I guess I can take out that 140k in PLUS loans but is there a cheaper alternative?</p>
<p>I'd be really interested in this thread too. Someone MUST have done the work on this by now, someone must know what the best loan option is for non-need based loans.</p>
<p>Realistically, the best advice is to find a cheaper college to attend. 140k in loans, whether private or PLUS is extremely high and means you will probably be repaying your loans well into retirement.</p>
<p>NikkiiL - I realize 140k in loans is really high. However, I can't really see any alternative if I attend a top 10/20 school. Of course, I am applying to a range of schools, many of which ought to give me some significant merit aid.</p>
<p>I guess what I'm trying to do now is figure out the best loan package and see if it's worth it to apply to those top schools. So essentially, for me, this is another "great school vs. good school with money" question.</p>
<p>Irregardless I'd still like to know the best non-need-based loan is (in case I still need to take out a few thousand after merit aid). Anyone?</p>
<p>The answer is ..... There really isn't a 'best' loan.</p>
<p>We were deluged with stuff like citiassist, and every bank under the sun. they all would have sent us up to $40000 on just a wing a a prayer. The problem is that there is no way on earth I would ever let my son take out a big loan in his name with me cosigning for his first year of school. If you can get your parents to cosign your rate is slightly better, but we're talking a minimun of 8-9 % interest. Oh, they say you don't have to start paying until you graduate. Problem is that your interest starts accumulating immediately.</p>
<p>100000 at 8% over 20 years is 836 a month. It's like buying the house without getting the key, DON"T do it!!</p>
<p>We are currently in this same situation with our S. There are no reasonable "student loans" available for a student with the exception of Stafford. ALL OF THE OTHERS, from everything I have researched, are not much different than your typical consumer loan. The PLUS loan even requires your parents to make payments immediately, and, yes all those cosumer type loans may defer the payments until after graduation, but not the interest. This is the classical example of the middle class being "too rich" to pay for many private schools and some public. I agree, you should consider a less expensive school, especially for an undergraduate degree. I'm not so sure the job you will get when you are done at a top tier school will pay you the termendous amount of money you would need to pay off a huge monthly loan payment, and I'm talking loan payment approaching $1000. Nor should parents jepordize their retirements to be paying these payments. I wish there was something; I posted a previous thread on loans with and with out cosigners. There is some info there; but not much.
Good luck!</p>
<p>With 140K in loans, even if the interest remains at 8% for the life of the loan, you are looking at a minimum monthly payment of $1,698.59. Your total repayment amount (again assuming the interest rate is locked in at 8% for the life of the loan) would be $203,830.13. That is obsurd for an undergraduate degree regardless of the caliber of education received. The vast majority of students fresh out of college with just a Bachelor's degree rarely make sufficient income to meet the minimum monthly payment you are looking at.</p>
<p>I am sorry, from a Financial Aid Counselor, a parent and a student (yes I am all three at the current time) I can't justify the need for any student to amass such a high debt over a Bachelor's degree. You truly need to be looking at school more within your price range. They may not be top 10 or 20 schools, but you won't be looking at default 6 months after graduation either.</p>
<p>I guess everyone agrees I shouldn't apply to any of the schools which would force me to take out 140k loans? Alright, publics and merit aid schools only. </p>
<p>It's a good thing I got straightened out now before I got my heart set on a top school (I just recently started considering need-aid schools) so thanks :)</p>
<p>BUT I'd still like to know the best loan option as I will most likely take out a few thousand (manageable debt!) unless I luck out and get a full ride. </p>
<p>gwfreshmom - Which of those consumer student loans did you choose?</p>
<p>highliter -- we have not chosen any of them; as all of them are pretty much the same. A standard interest rate of 6-8%, sometimes less if your parents cosign. Many require the cosign. Really no different than if you ran out and got a car loan. Several are advertised on tv, and you probably get numerous mailings if you are a senior. CitiBank overs "student loans", Sallie Mae are a few I've looked at. If you google "student loans" you'll see numerous hits.
Good luck, I'm glad you decided to reconsider other options.</p>
<p>Whoa...I guess Astrive is a classic example of student loans really being consumer loans in disguise! Over 9% APR. Wow.</p>
<p>Gwfreshmom (or anyone else) - Did you manage to find any private loans with a 6-8% fixed interest rate (if parents w/ good credit cosign)? That's comparable to Stafford. I did actually look a bit at Citi and a few other private loans, and the lowest I found were slightly higher than 8% fixed. </p>
<p>But some private loans offer better rates than PLUS loans. So why do people bother with PLUS loans at all?</p>
<p>The PLUS loan is good for parents with less than stellar credit. To get prime on a private loan requires an almost perfect credit score and history. The PLUS rate will also never go above 8.5%. Almost all private students loans are variable to the prime rate (currently 8.25%).</p>