Which Student Loan Banks did you go with?

Paying for College
1

Hi there,

I am going to be a freshmen in college this upcoming fall and my parents and I have been looking for student loans. We are torn on which loans to go with. We are trying to decide between Thrivent and Discover. While Thrivent does have lower interest rates, Discover offers more perks. My GPA will be above a 3.0, as a $16,000 scholarship I received states I must have my GPA 3.0+. Also, did you do a fixed or variable interest rate?

If there are better loan institutions out there, please, let me know! :slight_smile: Looking at $60K (not including interest) in debt when all 4 years are done. :frowning:

2

“My GPA will be above a 3.0, as a $16,000 scholarship I received states I must have my GPA 3.0+”

That doesn’t ensure you’ll have above a 3.0. That’s what you need to keep the scholarship. MANY students lose scholarships.

3

Is that $60,000 in addition to the $27,000 Direct Loans?

4

Your FA pkg already has loans in it, correct? How much?

Who will be paying back all these loans? (The $27k that will be in your FA pgs, plus the $60k from private loans?

What is your career goal and how much do you think you’ll be earning upon graduation?

5

Hi guys, thank you for your response.

@CourtneyThurston I am aware, however, my highschool GPA was a 3.6, so I am hoping college is the same! :slight_smile:

@thumper1 Yes, I was only offered the Federal Direct Unsub Loan and Federal Direct Sub Loan, amounting to roughly 5,500.

@mom2collegekids Yes, my Financial aid package included the Federal Direct Unsub Loan, and the Fed. Direct Sub Loan. And the State of IL MAP Grant for $214.

I did file for FAFSA, but that yielded nothing. my EFC is around 5,000.

I am majoring in Information Assurance, which the median income according to BLS.gov, is $90,120 per year. I do hope to own my own technology business one day.

6

That isn’t earnings upon graduation.

Are you saying that your family expects YOU to pay back the $27k of loans PLUS the $60k of private loans? $90k of loans??? That is too much.

Your parents have a modest income…are you sure they’ll qualify to cosign all 4 years?

7

I do believe they are expecting me to pay for all loans. They are being hesitant on co-signing due to the fact if I can not pay them back, then they are not liable for them. My parents do make under $75,000 a year combined.

8

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They are being hesitant on co-signing due to the fact if I can not pay them back, then they are not liable for them


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I think you meant to say: They are being hesitant on co-signing due to the fact if I can not pay them back, then they ARE liable for them

Frankly, they should be hesitant. It’s a bad idea to cosign that much in loans, particularly with that income.

What would you do if they’re told that they’ve cosigned too much debt and won’t get approved as you’re a rising sophomore or junior?

9

Are you expecting that you will receive private loans without a co-signer? Or that someone other than a parent will agree to be a co-signer?

10

Checking for clarity. Your total loans would be $27,000 in Direct Loans, and an additional $60,000 in private student loans?

$87,000 total?

If that is correct, it is my opinion this college is unaffordable for you. That is too much in loan debt for an undergrad degree.

11

@mom2collegekids Yes, my apologies.

My parents credit is excellent, which is good.

If they get denied a loan, doesn’t that mean I will get denied a loan? Because I have no credit to my name, as I do not have a credit card, house, or anything that would build credit.

We are still on the fence on which bank to go with.

12

Too much of student loans! You can’t afford this school!

What is the entry level earning?

13

Important: if your parents won’t co-sign, how will you get a private loan? Before you try to determine which is the best lender, I think you should confirm that your parents will, in fact, be co-signers. Don’t put the cart before the horse.

14

@thumper1 @4kidsdad

That math looks to be correct. The school in question is Illinois State University, which is $14,000 per year, with $10,000 for room and tuition.

15

So…your total four year cost using $24,000 a year is $96,000…and you are planning to fund $87,000 of that with loans?

This school is NOT affordable.

Is there anyplace where you could attend college and commute from your home?

16

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My parents credit is excellent, which is good.

If they get denied a loan, doesn’t that mean I will get denied a loan? Because I have no credit to my name, as I do not have a credit card, house, or anything that would build cr
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Your parent’s credit is excellent RIGHT NOW. BUT…once they co-sign for the first loan ($15k), then their credit takes a hit. Each time they cosign…more hits.

If your parents get denied at some point because the banks believe that their income is too low to support that much debt, then you’ll be in big trouble.

This school is not affordable.

That $16k scholarship…is that $4k per year?

17

Yes, there is a community college in which I already have 20 credits with, but, I do not want to attend a community college.

18

You don’t want that much in loans, either. That school is not affordable. Your parents are right up be reluctant.

19

This is a really bad idea to graduate with so much in loans. Please rethink this. You can start at community college and then transfer.

20

You won’t be able to get those loans on your own…so if your parents won’t cosign, you have no way of attending this school. Take a gap yr and find other colleges or do CC/transfer.