• Images
  • Text
  • Find a Couple + Registry
GO
Students

XP Private student loans

Anyone have any experience use private loans for school? 

What's the best one to use (as far as interest rates and stuff go)?

Re: XP Private student loans

  • peekaboo2011peekaboo2011 Washington, DC member
    Tenth Anniversary 5000 Comments 250 Love Its Name Dropper
    I have one per year for four years.  And the lender changed based on interest rates.  Honestly, the best thing for you to do is shop around.  Call different lenders and find out what they will charge you for an interest rate, since it changes based on your credit history and what not.

    I will tell you that we went with Sallie Mae this year, and my parents have had to make a payment every month since that's how it works.  My Wells Fargo loans can just sit.  Granted, the SM payment is only $15 a month, but I don't understand why they would make you pay while you're in school.

    Good luck!
    I french with my man
    Daisypath Anniversary tickers
  • Are you happy with Sallie Mae aside from making the monthly payments?
  • In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_students_xp-private-student-loans?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:684Discussion:7eb071d2-f627-42d7-8254-7cc3f03b0ab4Post:496a6db8-c7ef-4364-b844-f904cc33af60">Re: XP Private student loans</a>:
    [QUOTE]I have one per year for four years.  And the lender changed based on interest rates.  Honestly, the best thing for you to do is shop around.  Call different lenders and find out what they will charge you for an interest rate, since it changes based on your credit history and what not. I will tell you that we went with Sallie Mae this year, and my parents have had to make a payment every month since that's how it works.  My Wells Fargo loans can just sit.  <strong>Granted, the SM payment is only $15 a month</strong>, but I don't understand why they would make you pay while you're in school. Good luck!
    Posted by peekaboo2011[/QUOTE]

    Payments during school are usually "interest only" payments.  It kinda sucks, but I did it as well.

    Of note, the feds JUST started a program that (depending on your major) you might be interested in.  If you get Federal DIRECT loans and work in public service (teaching in low income areas, nursing/doctor in many hospitals) for 10 years, and make 120 qualifying payments (one a month for 10 years) they will COMPLETELY FORGIVE the balance of the loan.  <strong>this is only for FEDERAL DIRECT LOANS and with 10 years of public service</strong>.  but its worth looking into...
  • If you can avoid it, I would recommend not taking private loans.  I took loans out through Chase (which were then sold to AES) and they have a maximum deferment period of 4 years.  This means that the loan goes into repayment four years from the date that the loan disperses.  I am currently in graduate school and I got a nice suprise two months ago saying that my first loan payment was due April 2.  I called and told them that I was still a student and they said that it didn't matter.  So if you go with a private loan make sure to check the repayment terms.  Also, interest rates can be fairly high on private loans...mine is 7% on one of them.  If you can, the best way to go is through federal loans.  Depending on your income level, sometimes they will give you a subsidized loan, meaning that you don't have to pay any interest while you are in school.  That is huge.  On private loans, interest accrues and capitalizes every year, meaning you can end up paying double the amount of the loan. In addition, as one of the PP mentioned, there are several government programs out there that will eliminate any loan balances if you become a teacher or work for the government after 10 years of payments.  But that only applies to federal loans, not private loans.  Also, federal loans are more flexible as far as pay back.  They base your monthly payment on your income level.  Private loans do not, and often times their repayment period is shorter, meaning higher monthly payments.
    Wedding Countdown Ticker
  • In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_students_xp-private-student-loans?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:684Discussion:7eb071d2-f627-42d7-8254-7cc3f03b0ab4Post:d03350b0-cedc-4333-87f8-f89de7caaf46">Re: XP Private student loans</a>:
    [QUOTE]If you can avoid it, I would recommend not taking private loans.  I took loans out through Chase (which were then sold to AES) and they have a maximum deferment period of 4 years.  This means that the loan goes into repayment four years from the date that the loan disperses.  I am currently in graduate school and I got a nice suprise two months ago saying that my first loan payment was due April 2.  I called and told them that I was still a student and they said that it didn't matter.  So if you go with a private loan make sure to check the repayment terms.  Also, interest rates can be fairly high on private loans...mine is 7% on one of them.  If you can, the best way to go is through federal loans.  Depending on your income level, sometimes they will give you a subsidized loan, meaning that you don't have to pay any interest while you are in school.  That is huge.  On private loans, interest accrues and capitalizes every year, meaning you can end up paying double the amount of the loan. In addition, as one of the PP mentioned, there are several government programs out there that will eliminate any loan balances if you become a teacher or work for the government after 10 years of payments.  But that only applies to federal loans, not private loans.  Also, federal loans are more flexible as far as pay back.  <strong>They base your monthly payment on your income level.</strong>  Private loans do not, and often times their repayment period is shorter, meaning higher monthly payments.
    Posted by cmc224[/QUOTE]

    Which is awesome if you do the public service work and get EVEN MORE forgiven after 10 years... (my residency counts, can you tell how excited I am?)
  • If they base it on your income and you're still in school, you should have a fairly low payment. Just sayin...
    image
    image
    Pregnancy Ticker
    2010: 41 books, 2011: 31 books, 2012: 100 books
  • edited April 2011
    As a PP mentioned, private loans often have a shorter deferment period and repayment schedule (meaning larger payments).  I have one through ECSI, and it's no longer deferred.  The repayment period is 10 years, and for my AES loans it's 20.  You have to shop around and pay attention to the terms - hopefully your financial aid office can help you out.  ECSI has been very easy to work with in my experience, so at least their customer service is good.  However, that loan couldn't be consolidated with my federal loans (not sure if that's a universal thing).

    My AES loans have been deferred for over four years (thank goodness).  Just to clarify that even though PPs loan is through AES and could only be deferred for four years, that's not always (usually?) the case.

    Edit: I was wrong, I do have two ALPLN loans through AES that are no longer deferred.  I forgot about them because they are for relatively small amounts.
    Image and video hosting by TinyPic
    Lilypie First Birthday tickers
  • In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_students_xp-private-student-loans?plckFindPostKey=Cat:Special%20Topic%20Wedding%20BoardsForum:684Discussion:7eb071d2-f627-42d7-8254-7cc3f03b0ab4Post:6d94deb6-2c10-4984-9262-df088d6b3313">Re: XP Private student loans</a>:
    [QUOTE]If they base it on your income and you're still in school, you should have a fairly low payment. Just sayin...
    Posted by mrandmrsbrist[/QUOTE]

    Not really.  Tuition counts as income for me, so on paper I make something like $50k.  Which is twice what I actually make.   Additionally, when I was not in school and my income was $30k (not a lot), my payments were around $500 per month.  Which was very hard to swing.
    Image and video hosting by TinyPic
    Lilypie First Birthday tickers
  • SteveandKrisSteveandKris member
    500 Comments
    edited April 2011
    In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_students_xp-private-student-loans?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:684Discussion:7eb071d2-f627-42d7-8254-7cc3f03b0ab4Post:6d94deb6-2c10-4984-9262-df088d6b3313">Re: XP Private student loans</a>:
    [QUOTE]If they base it on your income and you're still in school, you should have a fairly low payment. Just sayin...
    Posted by mrandmrsbrist[/QUOTE]

    Federal loans typically require you pay nothing (or interest only) until graduation + 6 months... THEN its income based (if you apply for it)

    EDIT:  Graduation (or until you drop below half-time status)
  • Oh yeah - you have to apply for the income-based payments, and be eligible.  Not everyone is.
    Image and video hosting by TinyPic
    Lilypie First Birthday tickers
  • In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_students_xp-private-student-loans?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:684Discussion:7eb071d2-f627-42d7-8254-7cc3f03b0ab4Post:208a8c8f-33f3-4efe-99e8-05a8b18d7a85">Re: XP Private student loans</a>:
    [QUOTE]Oh yeah - you have to apply for the income-based payments, and be eligible.  Not everyone is.
    Posted by LauraT25[/QUOTE]

    thankfully, residents make crap =)
  • I'm not sure exactly how the eligibility works, TBH.  But I know there are people who don't make much money and aren't eligible!  It's not something I've had to look into (yet).
    Image and video hosting by TinyPic
    Lilypie First Birthday tickers
  • In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_students_xp-private-student-loans?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:684Discussion:7eb071d2-f627-42d7-8254-7cc3f03b0ab4Post:0f8c466f-d83b-47c5-9986-469c24552622">Re: XP Private student loans</a>:
    [QUOTE]<strong>I'm not sure exactly how the eligibility works,</strong> TBH.  But I know there are people who don't make much money and aren't eligible!  It's not something I've had to look into (yet).
    Posted by LauraT25[/QUOTE]

    it also depends on the type of loan... not all loan types are eligible for income based repayment
  • In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_students_xp-private-student-loans?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:684Discussion:7eb071d2-f627-42d7-8254-7cc3f03b0ab4Post:d03350b0-cedc-4333-87f8-f89de7caaf46">Re: XP Private student loans</a>:
    [QUOTE]If you can avoid it, I would recommend not taking private loans.  I took loans out through Chase (which were then sold to AES) and they have a maximum deferment period of 4 years.  This means that the loan goes into repayment four years from the date that the loan disperses.  I am currently in graduate school and I got a nice suprise two months ago saying that my first loan payment was due April 2.  I called and told them that I was still a student and they said that it didn't matter.  So if you go with a private loan make sure to check the repayment terms.  Also, interest rates can be fairly high on private loans...mine is 7% on one of them.  If you can, the best way to go is through federal loans.  Depending on your income level, sometimes they will give you a subsidized loan, meaning that you don't have to pay any interest while you are in school.  That is huge.  On private loans, interest accrues and capitalizes every year, meaning you can end up paying double the amount of the loan. In addition, as one of the PP mentioned, there are several government programs out there that will eliminate any loan balances if you become a teacher or work for the government after 10 years of payments.  But that only applies to federal loans, not private loans.  Also, federal loans are more flexible as far as pay back.  They base your monthly payment on your income level.  Private loans do not, and often times their repayment period is shorter, meaning higher monthly payments.
    Posted by cmc224[/QUOTE]

    This. All of this. This is exactly what happened to me. I really regret my AES loans (that were formally Bank One before it became Chase). I'm paying on them even though I'm actively in school. I wish all of my loans were federal loans because it would make consolidation so much easier. Plus, the interest rate on one of my AES loans really hurt me and I had no idea when I signed up for them what that all really means. I'd try to avoid private loans.
    image Image and video hosting by TinyPic Vacation
  • peekaboo2011peekaboo2011 Washington, DC member
    Tenth Anniversary 5000 Comments 250 Love Its Name Dropper
    In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_students_xp-private-student-loans?plckFindPostKey=Cat:Special%20Topic%20Wedding%20BoardsForum:684Discussion:7eb071d2-f627-42d7-8254-7cc3f03b0ab4Post:6461642d-9655-443c-9f2b-0858775ccacc">Re: XP Private student loans</a>:
    [QUOTE]Are you happy with Sallie Mae aside from making the monthly payments?
    Posted by aleighk1[/QUOTE]

    <div>I actually haven't had much of a hand in it.  My name is on everything, but my mom has paid more attention than I have.  And I know that my loans will defer until I finish school, be it 4 years or 40 years.  Don't get me wrong, it's not that I don't care, it's just that being in undergrad and having my parents support me at least somewhat financially (I've worked all 4 years I've been here), it's not something I've had to worry too much about, and considering I'm going to grad school next year, they just continue to be somewhat imaginary in my mind.</div><div>
    </div><div>Although mom surprised me this past weekend - she's retiring soon, and has a job offer lined up for afterwards.  Her plan is to pay off my student loans with her retirement check since I haven't really asked for money while I've been at school, and every time she tells me she's paid for something, I've told her I didn't expect her to.  SWEET SWEET EASTER SURPRISE!</div>
    I french with my man
    Daisypath Anniversary tickers
  • In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/special-topic-wedding-boards_students_xp-private-student-loans?plckFindPostKey=Cat:Special Topic Wedding BoardsForum:684Discussion:7eb071d2-f627-42d7-8254-7cc3f03b0ab4Post:df152959-f219-4510-a2db-b0f4ae3a1637">Re: XP Private student loans</a>:
    [QUOTE]In Response to Re: XP Private student loans : I actually haven't had much of a hand in it.  My name is on everything, but my mom has paid more attention than I have.  <strong>And I know that my loans will defer until I finish school, be it 4 years or 40 years.</strong>  Don't get me wrong, it's not that I don't care, it's just that being in undergrad and having my parents support me at least somewhat financially (I've worked all 4 years I've been here), it's not something I've had to worry too much about, and considering I'm going to grad school next year, they just continue to be somewhat imaginary in my mind. Although mom surprised me this past weekend - she's retiring soon, and has a job offer lined up for afterwards.  Her plan is to pay off my student loans with her retirement check since I haven't really asked for money while I've been at school, and every time she tells me she's paid for something, I've told her I didn't expect her to.  SWEET SWEET EASTER SURPRISE!
    Posted by peekaboo2011[/QUOTE]

    I would check on this... most defer the capital only, not the interest... this was an issue for me when i transitioned from undergrad to grad school...
  • I have had good luck with Wells Fargo, when the economy hit while I was in school, they were one of the loans companies that would accept many of the loan applications.  Mine have just sat while I am in school and I don't have to start paying until 6 months after graduation.
    Wedding Countdown Ticker
  • edited May 2011
    I got two Sallie Mae loans back BEFORE they started making you pay while you were in school.  I got one my Freshman year in 2006, one my Junior year in 2008.  They started in-school interest payment loans in 2009.  Whew!  Barely missed it, lol.

    I have private unsubsidized signature loans, so I don't have a lot of repayment options, but I like Sallie Mae.  Since I do auto-debit, I get like a 0.5% discount on my payments or something like that.  It amounts to like 5 cents a month but hey, I'll take what I can get.  They are also really good about communicating with you.  They send me an e-mail everytime they auto-debit, for example.  I'm also automatically entered into a monthly sweepstakes to win up to $25,000 in loan forgiveness, for what that's worth, lol.

    As for the private repayment terms being shorter, I'm not sure who told you guys that.  My repayment term is 15 years, which is pretty standard for student loans.  My first payment was due 6.5 months after I graduated.
    image image image image

    My Blog

    Anniversary

    100/100 books read in 2012
    17/100 books read in 2013
This discussion has been closed.
Choose Another Board
Search Boards