Law School Discussion

Deciding Where to Go => Financial Aid => Topic started by: *shell* on May 22, 2006, 05:39:59 PM

Title: myrichuncle.com
Post by: *shell* on May 22, 2006, 05:39:59 PM
Ok, so i've posted in other threads, but i feel the need to post here again...  just got a phone call from the myrichuncle people... they called to tell me they got my MPN and documentation and my check is being mailed in 2 days!  honestly, these people have been so insanely nice and helpful i can't stress it enough.  loans scare me, numbers and math give me nightmares, these people have made the whole process stress free!  i sound like a f-ing commercial, but whatever.  check them out, but dont do the stuff online, call and do it over the phone (i was denied online but approved over the phone).  i strongly recommend them...and i have a $28000 check on its way to me...wow.   ;D
Title: Re: myrichuncle.com
Post by: pipskicks on May 23, 2006, 12:43:38 AM
How are their rates?  I don't want a nice and painless signup only to pay an extra 1-3% over the next 20 years.
Title: Re: myrichuncle.com
Post by: StepUpT0theMike on May 23, 2006, 12:32:22 PM
How are their rates?  I don't want a nice and painless signup only to pay an extra 1-3% over the next 20 years.

Seconded, I'm beginning my loan shopping and am very curious as well.
Title: Re: myrichuncle.com
Post by: dok101 on May 26, 2006, 10:41:09 PM
I received 2.25 points plus LIBOR during the deferral period and 2.90 points plus LIBOR after the deferral period.  I believe there is either a 1% or 1.5% origination fee.  I chose the interest only during deferral period repayment option.  I was approved online and sent in the supporting documentation a couple of days back. 
Title: Re: myrichuncle.com
Post by: Steve.jd on June 02, 2006, 01:47:45 PM
I received 2.25 points plus LIBOR during the deferral period and 2.90 points plus LIBOR after the deferral period.  I believe there is either a 1% or 1.5% origination fee.  I chose the interest only during deferral period repayment option.  I was approved online and sent in the supporting documentation a couple of days back. 

Sorry but this is a bad rate.

The current LIBOR rate is 5.4% and projected to be well above 6 by this time next year.  So during the deferral period you are (currently) 7.65%, and well over 8 after deferral (and thats before counting LIBOR increases).  Plus an origination fee on a private loan is ridiculous.  Lack of an origination fee on citiassist or w/e is one of their main advantages.  If you are paying that rate, and an origination fee you would be better off with GradPlus.

Just to give you an idea of how fast LIBOR goes up, last year this time it was only 3.8%.  The FED is gonna keep hiking.  Loans that are tied to prime are the way to go, if you go with private.
Title: Re: myrichuncle.com
Post by: dok101 on June 02, 2006, 04:42:01 PM
Thanks for sharing your opinion but I disagree with you about the rate.  The historical 3-month LIBOR over the last 10 years has ranged between 1.110% and 6.838%.  Gradplus is fixed at 8.5%.  I'll take my chances with LIBOR considering its historical trend.     
Title: Re: myrichuncle.com
Post by: lsatflunkie on June 02, 2006, 05:05:06 PM
Thanks for sharing your opinion but I disagree with you about the rate.  The historical 3-month LIBOR over the last 10 years has ranged between 1.110% and 6.838%.  Gradplus is fixed at 8.5%.  I'll take my chances with LIBOR considering its historical trend.     

Aren't you in accounting dok?  ;D
Title: Re: myrichuncle.com
Post by: UGAfootballfanatic on June 04, 2006, 06:52:36 AM
It seems no one here remembers what interest rates used to be like 20 years ago. You can say 8% is a high interest rate, and compared to rates right now, it is. But based on historical comparison this is still quite low. If I had the choice, right now I'd take a fixed rate under 9% on the plan that it'll take 10+ years to pay off the loans and rates will continue to fluctuate upwardly. If rates drop significantly, you can always refi.
Title: Re: myrichuncle.com
Post by: Steve.jd on June 04, 2006, 09:04:36 AM
It seems no one here remembers what interest rates used to be like 20 years ago. You can say 8% is a high interest rate, and compared to rates right now, it is. But based on historical comparison this is still quite low. If I had the choice, right now I'd take a fixed rate under 9% on the plan that it'll take 10+ years to pay off the loans and rates will continue to fluctuate upwardly. If rates drop significantly, you can always refi.

What annoys me more than the fixed 8.5% rate on GradPlus is the origination fee.  A 3% fee on loan of say 40k is 1200 every year, lost to the void... >:(
Title: Re: myrichuncle.com
Post by: whoisjohngalt on June 05, 2006, 06:46:13 AM
It seems no one here remembers what interest rates used to be like 20 years ago. You can say 8% is a high interest rate, and compared to rates right now, it is. But based on historical comparison this is still quite low. If I had the choice, right now I'd take a fixed rate under 9% on the plan that it'll take 10+ years to pay off the loans and rates will continue to fluctuate upwardly. If rates drop significantly, you can always refi.

What annoys me more than the fixed 8.5% rate on GradPlus is the origination fee.  A 3% fee on loan of say 40k is 1200 every year, lost to the void... >:(

If you do it through some other lenders, they give you the 3% back.  When you say 1200 every year, you just mean each time you take out a loan, correct?  (Not that the same loan would be 1200 each year)
Title: Re: myrichuncle.com
Post by: HippieLawChick on June 17, 2006, 12:22:01 PM
It seems no one here remembers what interest rates used to be like 20 years ago. You can say 8% is a high interest rate, and compared to rates right now, it is. But based on historical comparison this is still quite low. If I had the choice, right now I'd take a fixed rate under 9% on the plan that it'll take 10+ years to pay off the loans and rates will continue to fluctuate upwardly. If rates drop significantly, you can always refi.

What annoys me more than the fixed 8.5% rate on GradPlus is the origination fee. A 3% fee on loan of say 40k is 1200 every year, lost to the void... >:(

If you do it through some other lenders, they give you the 3% back. When you say 1200 every year, you just mean each time you take out a loan, correct? (Not that the same loan would be 1200 each year)

Which other lenders?????
Title: Re: myrichuncle.com
Post by: whoisjohngalt on June 17, 2006, 01:32:00 PM
It seems no one here remembers what interest rates used to be like 20 years ago. You can say 8% is a high interest rate, and compared to rates right now, it is. But based on historical comparison this is still quite low. If I had the choice, right now I'd take a fixed rate under 9% on the plan that it'll take 10+ years to pay off the loans and rates will continue to fluctuate upwardly. If rates drop significantly, you can always refi.

What annoys me more than the fixed 8.5% rate on GradPlus is the origination fee. A 3% fee on loan of say 40k is 1200 every year, lost to the void... >:(

If you do it through some other lenders, they give you the 3% back. When you say 1200 every year, you just mean each time you take out a loan, correct? (Not that the same loan would be 1200 each year)

Which other lenders?????

T.H.E (Total Higher Education), by Northstar.  http://www.northstar.org/
Title: Re: myrichuncle.com
Post by: Alamo on June 17, 2006, 01:33:41 PM
...Just to give you an idea of how fast LIBOR goes up, last year this time it was only 3.8%.  The FED is gonna keep hiking.  Loans that are tied to prime are the way to go, if you go with private.

Um, according to this graph, prime and LIBOR seem to mirror each other pretty closely, particularly over the past 5 years.  I don't see why one would go up without the other.

EDIT: Forgot link: http://www.briefing.com/morningstar/mtgdata/prm_lbr.htm
Title: Re: myrichuncle.com
Post by: whoisjohngalt on June 17, 2006, 03:13:28 PM
2 things.

1) Sorry Steve.jd, but you are horribly wrong.  Prime is never the way to go.  Companies use the prime rate because it sounds better (honestly!) to say "your interest rate will be prime - 1%" rather than "LIBOR + 2%).  I dare you to show me a period over the past 15 years where  loans tied to prime were a better deal.

2) Myrichuncle is going to be offering stafford loans as well as GradPLUS.  It was in the WSJ the other day.

http://biz.yahoo.com/prnews/060615/nyth076.html?.v=49
Title: Re: myrichuncle.com
Post by: Steve.jd on June 18, 2006, 07:19:25 PM
...Just to give you an idea of how fast LIBOR goes up, last year this time it was only 3.8%.  The FED is gonna keep hiking.  Loans that are tied to prime are the way to go, if you go with private.

Um, according to this graph, prime and LIBOR seem to mirror each other pretty closely, particularly over the past 5 years.  I don't see why one would go up without the other.

EDIT: Forgot link: http://www.briefing.com/morningstar/mtgdata/prm_lbr.htm

I didn't say that prime would not go up as well...the reason I feel prime is better is because,

Prime -.5 or 1 is less than Libor + 2.7....

2 things.

1) Sorry Steve.jd, but you are horribly wrong.  Prime is never the way to go.  Companies use the prime rate because it sounds better (honestly!) to say "your interest rate will be prime - 1%" rather than "LIBOR + 2%).  I dare you to show me a period over the past 15 years where  loans tied to prime were a better deal.

2) Myrichuncle is going to be offering stafford loans as well as GradPLUS.  It was in the WSJ the other day.

http://biz.yahoo.com/prnews/060615/nyth076.html?.v=49

Title: Re: myrichuncle.com
Post by: Erapitt on June 19, 2006, 03:34:21 AM
Regardless, I assure you, 2.25% + LIBOR PLUS a 1-1.5% origination fee is NOT a good rate no matter how you look at it.

My current consolidated debt is just under 3% and I know times have changed since then, but there is still no reason to get a loan with that high of a rate.  You will be paying it off forever.
Title: Re: myrichuncle.com
Post by: cesco on June 19, 2006, 06:41:32 AM
It still seems like going w/the fixed GradPlus rate at 8.5 that can be knocked down to 7.0 is the best way to go. 

With the way interest rates keep rising - it just doesnt seem safe to take a variable rate.  I tend to air on the conservative side w/money, but GradPlus is what I am leaning towards...

Opinions on this?
Title: Re: myrichuncle.com
Post by: Alamo on June 19, 2006, 07:55:17 AM
I just hate the 3% origination fee on Grad PLUS loans.  I'm going private, LIBOR+2.55% w/no origination fee and a 9-month grace period (which I think I'm really going to appreciate if I end up in a clerkship).  This can also be knocked down 1% if you do auto-debit and make enough on-time payments.  But it is a risk if interest rates continue to shoot up; I'm betting they'll level off before too long.
Title: Re: myrichuncle.com
Post by: Erapitt on June 19, 2006, 07:57:02 AM
I just hate the 3% origination fee on Grad PLUS loans.  I'm going private, LIBOR+2.55% w/no origination fee and a 9-month grace period (which I think I'm really going to appreciate if I end up in a clerkship).  This can also be knocked down 1% if you do auto-debit and make enough on-time payments.  But it is a risk if interest rates continue to shoot up; I'm betting they'll level off before too long.

They def. aren't going to be leveling off.  They just were at all time lows, now it will raise up for sometime.  The economy is getting better and as interest rates increase, so will mortgage and loan rates.
Title: Re: myrichuncle.com
Post by: Alamo on June 19, 2006, 08:00:17 AM
I just hate the 3% origination fee on Grad PLUS loans.  I'm going private, LIBOR+2.55% w/no origination fee and a 9-month grace period (which I think I'm really going to appreciate if I end up in a clerkship).  This can also be knocked down 1% if you do auto-debit and make enough on-time payments.  But it is a risk if interest rates continue to shoot up; I'm betting they'll level off before too long.

They def. aren't going to be leveling off.  They just were at all time lows, now it will raise up for sometime.  The economy is getting better and as interest rates increase, so will mortgage and loan rates.

That's your prediction, and I understand you're going to make your decisions based on the assumption that rates will rise.  However, since you're not on the federal reserve board, I don't think you can say that they "def" are going to do one thing or another.  Beranke hinted in a speech a week or two ago that he's considering stopping the rate hikes; that very day the Dow went up 200 points.
Title: Re: myrichuncle.com
Post by: Erapitt on June 19, 2006, 08:27:37 AM
I just hate the 3% origination fee on Grad PLUS loans.  I'm going private, LIBOR+2.55% w/no origination fee and a 9-month grace period (which I think I'm really going to appreciate if I end up in a clerkship).  This can also be knocked down 1% if you do auto-debit and make enough on-time payments.  But it is a risk if interest rates continue to shoot up; I'm betting they'll level off before too long.

They def. aren't going to be leveling off.  They just were at all time lows, now it will raise up for sometime.  The economy is getting better and as interest rates increase, so will mortgage and loan rates.

That's your prediction, and I understand you're going to make your decisions based on the assumption that rates will rise.  However, since you're not on the federal reserve board, I don't think you can say that they "def" are going to do one thing or another.  Beranke hinted in a speech a week or two ago that he's considering stopping the rate hikes; that very day the Dow went up 200 points.

Have you ever taken a simple economics course buddy?  Its not like I am pulling my thoughts out of thin air.

Eh, screw it, I'm not going to argue with you.  Have fun paying back $100K of loans at 8-10% for the rest of your life.  Sorry I tried to offer some feedback regarding the decision to pursue loans that have Variable Rates.
Title: Re: myrichuncle.com
Post by: whoisjohngalt on June 19, 2006, 09:07:39 AM
I just hate the 3% origination fee on Grad PLUS loans.  I'm going private, LIBOR+2.55% w/no origination fee and a 9-month grace period (which I think I'm really going to appreciate if I end up in a clerkship).  This can also be knocked down 1% if you do auto-debit and make enough on-time payments.  But it is a risk if interest rates continue to shoot up; I'm betting they'll level off before too long.

Most of that is true, except many companies (such as the non-profit Northstar (T.H.E.)) will knock off the origination fee at disbursement.  Also, T.H.E's GradPLUS offers discounts that you continue to have as long as you are in good standing.  Most private loans take away all discounts as soon as you miss ONE payment - and they don't let you ever get it back. 

I'm in a weird position because I'm pretty sure I have to go through my school for GradPLUS loans (direct lender).  Though my financial aid advisor said that GradPLUS might not be the way to go for me... more on that when I get more info.
Title: Re: myrichuncle.com
Post by: Alamo on June 19, 2006, 09:10:13 AM
I just hate the 3% origination fee on Grad PLUS loans.  I'm going private, LIBOR+2.55% w/no origination fee and a 9-month grace period (which I think I'm really going to appreciate if I end up in a clerkship).  This can also be knocked down 1% if you do auto-debit and make enough on-time payments.  But it is a risk if interest rates continue to shoot up; I'm betting they'll level off before too long.

They def. aren't going to be leveling off.  They just were at all time lows, now it will raise up for sometime.  The economy is getting better and as interest rates increase, so will mortgage and loan rates.

That's your prediction, and I understand you're going to make your decisions based on the assumption that rates will rise.  However, since you're not on the federal reserve board, I don't think you can say that they "def" are going to do one thing or another.  Beranke hinted in a speech a week or two ago that he's considering stopping the rate hikes; that very day the Dow went up 200 points.

Have you ever taken a simple economics course buddy?  Its not like I am pulling my thoughts out of thin air.

Eh, screw it, I'm not going to argue with you.  Have fun paying back $100K of loans at 8-10% for the rest of your life.  Sorry I tried to offer some feedback regarding the decision to pursue loans that have Variable Rates.

Yes, I took both macro and micro econ courses my last year of UG, although that was 6 years ago now.  I understand your opinion, and that there are reasons for doing what you're doing, but don't act like you know exactly what's going to happen - nobody does.  You're making a prediction about the future - all economic predictions are inherently fallible.

If you look at the graph I posted earlier, interest rates right now are around the average of what they've been over the past 15 years or so.  If you want to make a more elaborate case for your reasoning, I'd certainly be interested to hear it, but just realize that you're only making a case, not elucidating some sort of immutable gospel truth.
Title: Re: myrichuncle.com
Post by: cesco on June 19, 2006, 12:12:05 PM
I appreciate the good arguements - very helpful info.

Also, thanks 'whoisjohngalt' for the info on the origination fee - Ill have to keep my eye out for that discount option.  I have a group of lenders to compare, just havent done it yet. 

I personally still think I am going to stick w/the fixed rate.  It is mostly for my piece of mind.  I had a 2nd mortgage on my 1st house and it was variable rate.  I HATED the fact that every month the payment slowly inched up.  That was my "lesson learned" on variable rates.