Stafford and Private Lenders

Colleges and Universities A-Z University of Southern California
1

<p>Which are you using and why?</p>

<p>Any input would be greatly appreciated.</p>

2

<p>I am leaning towards USC Credit Union (Because a lot of previous students seem to pick it, a USC factor?) and Wells Fargo (Because their interest rate is pretty low and I have an account there). What about you guys???</p>

3

<p>I’m leaning to Discover because they don’t have origination fees for the Stafford Loan. I was leaning to USC Credit union for the Stafford Loan, but I changed my mind because of the origination fees. The interest rates are comparable because the loan is from the federal government.</p>

4

<p>Discover all the way. Fees are much less.</p>

5

<p>Really??? What about the interest rate for Discover?? Is it as least similar <em>or hopefully</em> lower than the others???</p>

6

<p>The interest rate for the Stafford rate is the same for everyone, including Discover, because the loans are from the federal government. The only difference is that Discover does not have any origination fees.</p>

7

<p>So the 5.8% fixed rate for subsidized loans occurs 6 months after graduation, right? Just making sure there are no hidden rates or anything for Stafford subsidized loans…</p>

8

<p>[FinAid</a> | Loans | Stafford Loan Discounts](<a href=“http://www.finaid.org/loans/staffordloandiscounts.phtml]FinAid”>http://www.finaid.org/loans/staffordloandiscounts.phtml)</p>

<p>Link of a whole bunch of Stafford loan lenders… Frost Bank seems to be a good one, although I’ve never heard of it…</p>

9

<p>For Stafford loans disbursed after July 1, 2009 the interest rate is 5.6%, and you are correct: on subsidized loans the interest does not accrue until 6 months after you graduate or drop below 1/2 time enrollment. On unsubsidized loans, the interest begins accruing immediately, but payment is not due until after graduation or dropping below 1/2 time enrollment. As nhsharvard said, the interest rate is set by the government, so only the fees will vary lender-to-lender. The fee is capped at 1.5% of the loan. <a href=“http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp[/url]”>http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp&lt;/a&gt;&lt;/p&gt;

10

<p>Thank you all - very informative. I’m leaning toward Discover now. Does anyone have an argument against using Discover?</p>

11

<p>This is brilliant :smiley: Thanks for the info… Btw, I’m a spring admit, it doesn’t matter much if I fax over the loan application now, right?? I mean I wouldn’t ended up paying more right???</p>

12

<p>What seems to be the best lender for loans from the EFC?</p>

13

<p>bump for question on EFC lenders.</p>

14

<p>Bump.</p>

<p>By the way, for those who sent in their Stafford loan request form to USC and got it approved. How long did it take after that for the lender to contact you about the MPN?</p>

15

<p>bumpppp !</p>

16

<p>Just want to clarifty:</p>

<p>Since I’m a spring admit, I shouldn’t go through this loan process until the fall right?</p>

17

<p>my oasis says i have 5,500 in unsubsidized stafford loans…i never applied for a loan nor do i want to take one out. is it just showing me i have the option of using it or am i stuck with a loan now?</p>

18

<p>bump forever’s question! lol!</p>

19

<p>amy12,</p>

<p>you can forfeit the offered loans by simply not faxing in the required form. You are not stuck with the loan.</p>

20

<p>What exactly is an origination fee? Is it only for people who are first time lenders? What if you are continuing student?
I’ve borrowed from USC credit union so far and figured interest for all of these are about the same. I wasn’t sure about the origination fees (how much is it also?)</p>