<p>Ok so I am wondering which one I should use to take out my student loans, any advice?</p>
<p>How do the rates compare? I believe the PLUS loans have a hefty 3% origination fee and 7.9% interest. Does the Wells Fargo loan accrue interest immediately? Must you begin payback immediately or is it deferred til you graduate?</p>
<p>I’ve heard you should avoid private loans but you should still compare costs.</p>
<p>Would someone in the UMiami financial aid office be able to counsel you regarding the differences?</p>
<p>The Wells Fargo loan has a deferment plan. I think i am going to go with PLUS loans instead. Unless anyone else has some advice or insight?</p>
<p>Beware the PLUS loan. There is no deferment on this loan. There was a very good article about how these loans are very similar to what caused the housing bubble and burst. There is no income verification with these loans, and parents, who are on the hook for these loans, often borrow more than they can ever pay back.</p>
<p>so @psychodad10 you have any other suggestions?</p>
<p>Are you a parent or student? PLUS loans are loans to parents of students</p>
<p>I am a student @biocellar. What do you think the best avenue to take will be?</p>
<p>As a student you can look into Stafford Loans (govt) or the many private institutions. There are lots of choices but focus on interest rate, term, deferment policy, delinquency policies etc.
PLUS is the govt loan that your parents can take out. CC has a whole section on Forum area on Financial aid where you can search the pros and cons of the various loans. THE FA advisers at UM are a good resource too, they know a lot and will give you advice based on your personal situation. I frankly would NOT take advice from anyone on CC. this is a very personal decision that you will be obligated to for 10 or more years so it is important to get professional advice from your parents and/or their financial adviser, accountant or the school’s FA department. Good luck.</p>
<p>Whatever you do, make sure you completely understand the terms of any loan you are taking out. Figure out an anticipated monthly payment including all money you will borrow over four years (which may not wait until you graduate!) as well as the total cost of interest over the life of the loan, including origination fees. Remember to plan for tuition increases each year of 3 to 4%. Some private schools offer lower interest loans direct from the school; perhaps UMiami does too.</p>
<p>Also understand your anticipated income and marketability upon graduation. Do your research and proceed with caution.</p>