^ Good thought but can’t do that, unfortunately; my ex is mentally ill and can’t be reasoned with even if I wanted to try.
We have a $46K EFC. Our D is attending a private university where her financial aid award (grant and federal direct loan) is $18.4K.
I have an outstanding FICO score so I applied for a Wells Fargo Collegiate Loan as a cosigner for our daughter. Their offer to us was 7.99 percent fixed, variable 4.49 percent (with my bank’s discount applied), with no origination fees and no prepayment penalty for either option. We’re thinking of going with the variable rate and refinancing later if interest rates jump significantly. I would only go with the Parent PLUS loan as a last resort.
@ARTCC, I also can apply for a Wells Fargo loan with a USAA discount. I did some looking for reviews and read so many horror stories about Wells Fargo that it scared me off. Plus the Sallie Mae rates are possibly lower (if you have a good credit rating), also with no origination fees. I’m curious if you evaluated both and your reason for favoring Wells Fargo (ie., did I miss any advantages).
Thanks for the suggestion. We’ll also apply to Sallie Mae to see if they beat the Wells Fargo rates. Sally Mae releases cosigners after only 12 on-time principal and interest payments, assuming my D has good credit if the loan aren’t paid off by that time already. Wells Fargo cosigner release takes 24 months.
I spoke with customer service representatives at both lenders–Wells Fargo seemed to be more professional and knowledgeable, but it’s not a large enough sample to draw a conclusion one way or the other. The Sallie Mae website seems more user-friendly for accessing the application and account. Since my D will remain my dependent, it’s unfortunate that the student loan interest won’ be tax deductible for me as the cosigner, but at our income level, it’s not that big a deal.
Hopefully we can help our D pay off all or most of the loans we intend to take with our future investment and other income, although the earlier cosigner release would seem to give the edge to Sallie Mae, especially if their interest rates are the same or lower.
The Sallie Mae Smart Rewards for Upromise while still in school for the $25 Fixed or Interest repayment option sounds interesting, but it might not be such a big deal.
^ Sallie Mae’s loans are serviced by its sister company, Navient, as are all of the Stafford loans. So they are all there in one place. My son’s Upromise account has about $1 in it - I forgot all about it after signing up years ago and never kept my credit cards up to date. But I am liking the 2% of loan payment reward, which you can sweep right into an extra payment against principal, if I understand it correctly.
Has anyone consolidated their PLUS with their own direct loans. I have a consolidated loan that would be costing me dearly if I wasn’t a teacher. I made horrible mistakes as a young independent student and I’m trying to get all this credit mess cleaned up. I kept deferring and taking out more then I should. I didn’t have parents to help me understand anything and neither did my husband. He kept making financial mistakes which led to me filing bankruptcy, divorce, 3 jobs, consumer debt consolidation , and a 2nd marriage. The bankruptcy is off my record, the debt is all paid, and despite my poor health and horrible work conditions I am working as a teacher so my loans will finally be forgiven in 8 more years.
Now my daughter who I guided through my own mistakes has an opportunity of a lifetime to go to Cornell. When I got remarried I told him I wanted to keep things seperately just on paper to keep my low student loan payments or for potential financial aid for my daughter. . We didn’t even have to get married because my benefits cover domestic partners. He promised me that the money we saved in taxes would more then make up for her college tuition.
Well fast forward 5 years. She’s made it into an Ivy and he doesn’t want me to sign a Plus loan or any loan for her yet she’s stuck with an EFC of 38000 because of his high income. If I had kept things seperately I only make 75000 and I have 2 children from my first marriage. Their father has continued to make poor decisions and is severely I’ll on medicaid and applying for subsistence for himself.
So my only option for her is the PLUS because her father doesn’t even qualify. However I read that I might be able to consolidate the Plus into my existing consolidated laon and keep the same payments and it could possibly all qualify for loan forgiveness.
And for those who might judge. I was severely misguided as a young student with the loans. The schools didn’t care that a 13000 loan would turn to 25000. This is the education that I want to give my kids. Pay those loans off asap. While you are you g and have the energy to work more and harder. Live cheaply as possible while your young and you only deserve the fruits of your labor when all the work is done.
So has anyone consolidated their plus. And is there any other option for my child. I do t want to just cosign a private loan for her because I feel there is jo safety net. Life has taught me there are no guarantees even if you work hard and do the right thing
Rachel, can I suggest you start your own thread on this? This one has run a bit and some of the knowledgeable posters, who already looked at this thread and moved on, may not realize you have a fresh question. Good luck.
Oh thank you. How do I do that
(At the top of this page, see the orange flag for New Discussion.)
Thanks. Sallie Mae approved my D’s loan application with me as her cosigner. We received better terms from Sallie Mae than Wells Fargo although Wells Fargo’s variable rate is .25 percent lower. I like Sallie Mae’s Interest Rate payment option. With a much lower interest rate and no origination or disbursement fees, we will save a lot of money by not going with a Parent PLUS loan.
^ Thanks for reposting. I feel I am on the right track.