<p>hello, i am really concerned with paying for college. my parents make over 90,000 dollars a year and we didn't get any gift aid. however we did qualify for PLUS loans. do you guys recommend that or me taking out a private student loan from Sallie mae?</p>
<p>how does loans from sallie mae work? what does the prime rate mean? is the interest rate locked in or does it vary?</p>
<p>any info would be appreciated.</p>
<p>If at all possible, and your proposed school has other programs such as direct loans, do not use Sallie Mae.
First, the loans from Sallie Mae are well noted for hidden fees, and it's not uncommon for these to double or even triple the over the term. Because of a sweetheart deal with the Bush administration in which the chairman of Sallie Mae (a man named Lord), was instrumental, you'd only be allowed to consolidate once which raises the rates considerably, and are unable to file for the usual creditors protection. Additionally SM has recently elected to remove themselves from the consolidation process. So if your schooling doesn't go well, that type of loan could ruin you and your family. Additionally SM runs one of the largest and most aggressive and abusive collection agencies in the country. To the extent that they have been associated student suicides, and some students have been forced into a permanent state of poverty or exclusion from the mainstream economy.
Additionally SM was one of the companies specifically listed by the NYS Attorney General for questionable practices, including 'providing services' to college financial aid offices to ensure their loans recieved enhanced consideration by students.
Essentially there are much more pleasant ways to ruin your life than taking out private loan from this company. And there are other ways to fund your education, even if the financial aid advisors at a given school elect not to properly advise students of these options.
One tactic would be to wait to enter school. As the abuses of this industry cannot go unnoticed too much longer, and eventually congress will be forced to find a more equitable solution to student funding than these private loans (which are still using public monies, so the public pays, the student pays...and companie like SM post billion dollar a year profits)</p>
<p>Based on recent changes, you won't be able to get a private loan thorugh Sallie Mae, as they have discontinued that program.</p>
<p>so it is better to take the plus loans? i heard those loans aren't deferred payments</p>
<p>Deferred payments are no boon either, keep in mind that in most deferment programs all that is happening is the loan amount is allowed to escalate.
Since your parents are fairly affluent, it may be a better alternative to try to find a moderately priced college which still is credible. That could be a means to avoid the whole loan mess.
Or wait, and pray that our representatives finally realize the college condition cannot be contingent on the use of private or subsidized lender.
Or being mildly sarcastic, move to a civilized country where they educate their people, without excessive burdens on the family, as a contribution to the common good, and not a lifelong contribution to some CEO's plan to build his very own golf course.</p>