I would like to secure a student loan that is under my D’s name (though I will pay the loan). Cost of tuition will be around $45,000 I will pay $10,000 up front and want to secure the loan for the $35,000 remaining. Please anyone familiar with student loans can you please direct me to reputable places to secure such a loan. I am not sure whether or not I want to defer the loan til graduation or pay all along. It is most likely that the interest rate would be significantly less if the loan is not deferred. Any advice on the subject is greatly appreciated. Some stories reflecting how you went about securing loans (names of places to get loans, feelings on deferring until graduation) are greatly appreciated. This is my first and I have two more to follow.
The only student loan that will be solely in your daughter’s name will be the Direct Stafford loan for $5,500 offered by the Dept. of Ed. Anything else needed would be a private loan, that you will need to co-sign for your daughter, meaning that the loan will be in both of your names. You would be on the hook for it equally. Some of the big private loan players include Sallie Mae, Discover, Suntrust, etc. They all offer private educational loans with a variable interest rate.
You can also get a Parent Plus Loan but that is in your name only, not your daughter’s.
You will need to cosign for anything above the Direct Loan amount,
You can check in your state, I’ve heard that some offer student loans…not sure if they are cosigned…or not.
Yes I know I will have need a private loan and cosign for her, not a problem. I will be paying the loan off anyway. @Kgos16 of the lenders that you have listed which in your opinion is most reputable? Or, most used by people in my position?
Will you need a $35k loan every year for 4 years, and then possibly also for the two younger siblings?
Is this for NYU?
I would choose Sallie Mae between those listed. They now offer the same protection as the PLUS loan, that if the student were to pass away, the co-signer is released of the debt. Just verify that this is in the fine print before you officially sign. Please read all of the terms regarding the repayment terms and such before you sign as well.
Plus loans are forgiven if the student dies? They are a parent loan…I had no idea this was true.
Not for NYU…it is for Cornell. Yes I will need it for all 4 years. Repayment is not a problem as my future forecast is very bright. I need to decide which private lending institution has the best rates and best student loan programs is all.
I am not all that worried about my other two as neither will be attending Cornell, with their grades we will be shopping colleges for price.
quick guide
http://www.finaid.org/loans/ChoosingStudentorParentLoans.pdf
Here is a great resource for all the types of loans and considerations and links
http://www.finaid.org/loans/
Parent Loan Calculator
http://www.finaid.org/calculators/parentadvisor.phtml
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am not all that worried about my other two as neither will be attending Cornell, with their grades we will be shopping colleges for price.
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Aren’t you concerned that your money will be going towards paying off $140k+ in DEBT…while trying to pay for the younger two’s college costs? Just because they’re not “cornell material” shouldn’t mean that their college future should be jeopardized by parents going into deep debt for the “smarter child’s” education (I just got a sick taste in my mouth typing that. ugh)
Maybe the bright future is an impending known large inheritance from a wealthy elderly or ill parent.
Yes, the PLUS is forgiven if the student passes away. One of the advantages of borrowing a Federal loan versus some of the private loans out there.
The Plus is a parent loan…so is it also forgiven if the parent dies?
If Plus are forgiven with student death, and Sallie Mae is as well…what is the advantage of Sallie Mae?
The only advantage I could see is if a parent could get a lower interest rate with Sallie Mae in comparison to PLUS. I don’t know the regs off the top of my head if a parent would die, but I’m fairly sure the loan is also forgiven in that case.
Plus seems to be forgiven either way…parent or child dies.
If a much lower rate can be found elsewhere then get life insurance on both.
However, I think the parent needs to be aware that just because the younger two may not be Cornell-material, does NOT mean that they won’t be as successful or ever MORE successful than Child #1.
Child #2 and Child #3 may constantly remind the parents that all that money got spent on Child #1, yet the younger ones were more successful. Fate sometimes has a sense of humor.
A PLUS loan is almost always a better deal than a private loan, just because of the protections and the benefits like loan consolidation (not with the student stafford loan) and forgiveness on death. I believe the interest can be deferred while the student is in college. However, the PLUS loan is in the parent’s name, not the student’s.
The RATE is not going to be different if you defer or not, but the amount of interest accrued will be. Deferring payments until after graduation is how a $35k loan becomes a $45k loan, and then suddenly $75k is due.
I believe Sallie Mae also makes private loans that are not Plus loans. You have to know what product you are signing.
I was offered PLUS loans from both my kids’ schools. Check your aid package to see if they are there. I think the rate is 7.4%. Interest begins to accrue from the date of disbursement, but you can defer payments.
@mom2collegekids As I stated “Repayment is not a problem as my future forecast is very bright.” This means that there will be plenty enough money for ALL my children. But I do not feel the price tag of an ivy is warranted for children that are clearly not in that league. So yes for them we will shop price. We will try and get the most value for our buck, while they will hopefully be attending good schools whether public or private. Money is not an issue but why dole it out to say Sarah Lawrence when Binghampton would be a better value? See my point?
Money is not an issue? Then why take out loans?
@Madison85 As I stated earlier “Repayment is not a problem as my future forecast is very bright.” This means that there will be plenty enough money for ALL my children in the near future.
For now I will need to secure loans until I am better off financially, which will be so in the near future. Where the money will come from is nobodies business.
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This means that there will be plenty enough money for ALL my children. But I do not feel the price tag of an ivy is warranted for children that are clearly not in that league. So yes for them we will shop price. We will try and get the most value for our buck, while they will hopefully be attending good schools whether public or private. Money is not an issue but why dole it out to say Sarah Lawrence when Binghampton would be a better value? See my point?
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Well, that depends. I don’t know your kids’ personalities. Certainly, there is no need to pay $60k for ANY child if they’re going to do equally well at a less-expensive school (whether it’s an instate public or another school with large merit).
Heck…It could be argued that another school would be a better value (ROI) for your Cornell child. Only 1 or 2 professions require/expect an ivy educations (i.e. certain Wall Street jobs).
I believe that your Cornell child will be an Accounting major? If so, it could easily be argued that paying $60k per year for that is not a good value.
There is nothing uniquely expensive about ivies…many/most privates cost the same, whether they’re ivies or not.
However, some kids have personalities that don’t do well in “big publics” if those schools are impersonal or the student has special needs. It’s not unusual for parents to determine that a good-but-not-top-student will do better at a smallish LAC or similar…and it could cost the same as an ivy.
But, since you say money isn’t an issue, then you’d likely pay full cost if a younger child needed that environment. Good. 