<p>Hello, I am attending university of michigan at ann arbor, which costs about $50,000. I am currently looking through banks and credit unions for private loans. Do any of you have any suggestions for good places to take private loans?</p>
<p>By good places I mean:
-Has low interest rate
-Doesn't take into account the interest until after graduation</p>
<p>How much are you planning on borrowing over four years? Will your parents (or someone else) cosign for these loans?</p>
<p>There are no private loans that subsidize interest when you’re in school. The rate usually depends on the credit score of the borrower/co-signer and there may be rebates for on-time payments, automatic withdrawal from checking, etc. Assuming that’s your parents, they should start with the banks/credit unions they have a relationship with. They might qualify for a home equity loan, which could have tax advantages and lower rates. The federal Parent Plus loans are at 8.5% and payments can be deferred while the student is in school. If they can make monthly/quarterly payments on the school’s payment plan (usually interest free) and take a smaller deferred loan, that may be a lower cost alternative.</p>
<p>Check your states higher education services. My state of NY (NYHELPS)now has a loan program that will help residents get loans once you have exhausted the federal student loans. This is a new program that has started this year and I believe it is a result of some federal regulations.</p>
<p>There are loan limits, for example as a freshman, you are allowed to borrow up to 10,000.
After your sub and un sub stafford, that is an additional 5500.
Also you can opt to defer the payments.</p>
<p>Other states may be doing the same.</p>