<p>I am going to a university this Fall. After the school grants, scholarship, my parents help and Fed subsidized loan, I need additional $15k per year. </p>
<p>Anyone has any good recommendation for cheap student loans?</p>
<p>My parents have very good credit history and are willing to be the cosigners.</p>
<p>Have your parents applied for a Parent Plus Loan? Those are good college loans but they are in your parents’ names. Re: loans for you as the student, with cosigner…go to your parents’ bank and ask them about college loans.</p>
<p>P.S. Adding $15,000 plus Stafford loans means that you will have over $80,000 in loans for undergrad school only. That is a hefty amount of loans…will be over $800 a month for at least 10 years of repayment.</p>
<p>So, you are planning on going into $20,000 debt per year? Are you sure???</p>
<p>$15k is just a ballpark max. it would be more like $9k per year. besides, I can transfer some credits from my APs. So, my estimate is $50k upon graduation (including the amount from subsidized loans)</p>
<p>Checked a couple of online student loan sources. They give out interest rates from 3% to 9%, depending upon the applicants creditworthiness. With such a wild range, it is hard to gauge the real rate. I just wonder if anyone here has some past experiences.</p>
<p>[FinAid</a>! Financial Aid, College Scholarships and Student Loans](<a href=“http://www.finaid.org%5DFinAid”>http://www.finaid.org) has a whole bunch of useful calculators to help you determine if you can afford the amount of loans you are considering.</p>
<p>You can borrow the max. allowed by the Stafford Loan program (5,500 freshman, 6,500 sophmore, 7,500 junior, 7,500 senior year) without a co-signer. Anything more than that will require a creditworthy co-signer, or that your parents take PLUS loans.</p>
<p>So, my estimate is $50k upon graduation (including the amount from subsidized loans)</p>
<p>How are you figuring that? With Stafford loans, you’ll have $27k in loans. Then, you’re planning on borrowing about $10k per year…that’s $40k. So, about $67k total. That is way too much.</p>
<p>What school is this and what is the breakdown of your FA pkg?</p>
<p>How much will your parents pay?</p>
<p>Don’t forget tuition increase and interest accrued on private and unsubsidised loans. Probably more like 70k+ at the end.</p>
<p>There is really no such thing as a “cheap” private student loan, so unless your parents plan to help you pay this back, I don’t think borrowing this much is a good idea. But to answer your questions:</p>
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<p>Those rates are usually starting variable rates (some lenders offer fixed rates, but at the upper end of the range). Those rates can go up, and probably will–and in some cases there is no cap on the interest rate. If you are borrowing a lot and spread out the payback, in 5-10 years your rate might be much higher than Parent Plus rates, so what looks like a good deal now might not turn out that way.</p>
<p>For the variable rate loans, you won’t know your rate until after you apply, and quotes can be as variable and inscrutable as college admission results, so you may need to apply to several places. (We have excellent credit but did not get the lowest rate in the range from anyone. Lenders use other factors, and don’t have to tell you what they are.) Apply to all lenders around the same time so that the multiple credit inquiries don’t hurt your parents’ credit score. </p>
<p>Search “private student loans” for back threads, but some lenders mentioned, I think, were Wells Fargo & Discover (we have Citizens). For us, Sallie Mae quoted by far the worst rate; YMMV. Start with your own credit union or bank; they often give discounts to account holders.</p>
<p>Some things to consider, in addition to starting rate:</p>
<p>What is the upper limit to the rate?
Do they give a discount if you have an account, and/or a previous loan (if you plan to borrow multiple years)?<br>
Can you release the cosigner, and if so, when?
When do you have to start payback (if you pay the interest during school, sometimes the rate will be a little lower)?</p>
<p>I do not look for an advice for how much loan amount I can handle. I think I can graduate in 3 years (with lots of my APs). That is why the total amount isn’t going to be astonishingly high as you suggested.</p>
<p>I am less concerned about the variable rate moving up. For a one percentage point of rate increase, it would just cost me another $300 on a $30k loan. I doubt it will go up more than that in the recession. I can pay it off quickly within just several years. If the rate is getting ridiculously high, the economy must be very good and I can get a job with higher salary. </p>
<p>buenavista, thank you very much for your advice. Looks like I will try several different banks/credit unions and compare the rates.</p>
<p>Anyone who have similar experience, please share here.</p>
<p>So you will have $60,000 of debt at graduation( not counting interest), instead of $80,000 something.
You’re right, that’s a big difference.</p>
<p>“If the rate is getting ridiculously high, the economy must be very good and I can get a job with higher salary.”</p>
<p>This level of reasoning would not fly in a basic high school logic class.</p>
<p>I urge you to rethink your plans. You’re looking at going into more debt for a bachelor’s degree than I’m taking out for undergraduate and grad school combined.</p>
<p>emeraldkity4, this is also assumed that i don’t do any part-time work or any internship, which is highly unlikely.</p>
<p>Itsme2…one place to go is to the bank or credit union where your parents already do business. It is very possible that they have student loans. I know that our credit union and bank do.</p>
<p>Your parents are the ones who will have to have the ability to get the loan, meaning sufficient income and collaterol to secure the loan. Just remember that they will need to qualify for this loan for four (or three…depending on how long it takes you to graduate) years. Some families qualify in the first year…or two…then find they cannot get a loan for the third/fourth years because their credit is maxed. </p>
<p>If your parents are willing to take a loan, do have them look at the Parent Plus loan. You would not be a cosigner on this type of loan, however.</p>
<p>I would hesitate to suggest having your parents guarantee your loan or sign for the loan themselves, as this jeopardizes THEIR financial security. Educational loans are generally NOT discharged in bankruptcy, which can be nasty for parents who are looking to retire and REDUCE their expenses.</p>
<p>Many of us try to have our kids not take out more than whatever the maximum Stafford loan amounts, as it can REALLY limit the options of the borrower. This is especially true when the person is potentially considering grad school (as is often required for many jobs).</p>
<p>Op, how much do you expect you will need to pay for medical school?</p>
<p><a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1294820-how-much-loan-debt-too-much.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1294820-how-much-loan-debt-too-much.html</a></p>
<p>My brother just announced last night that DENTAL school is about $100K PER YEAR for UCLA & equivalents! That is a mind-boggling amount, to me, even tho I am familiar with VERY pricey private undergrad tuition & expenses.</p>
<p>Same with private med schools HImom. And they go up every year. That is why some med/dental students are $300,000+ in debt when done.</p>
<p>Why my kiddos did everything possible to avoid undergrad debt. Son a current med student is still trying to bring down his debt. It was the deciding factor in which med school to attend. Again, in-state med/dental tuition (some states more so than others) is a big merit award in the med/dental school scholie game (and there is almost NONE available, very little.)</p>
<p>Kat</p>
<p>Itsme…</p>
<p>Where will you be going next year. It looks like you’ve been accepted to at least one “need met” school. If so, then why are you short $15k per year? </p>
<p>What is your EFC? </p>
<p>Is the problem that your parents aren’t paying enough so you’re short $15k per year?</p>
<p>This happens to be in last week’s WSJ: [Getting</a> Going: Don’t Major in Student Debt - WSJ.com](<a href=“Getting Going: Don't Major in Student Debt - WSJ”>Getting Going: Don't Major in Student Debt - WSJ)</p>
<p>“He recommends that students keep their total borrowing to no more than their expected annual income the first year out of school.”</p>