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Author Topic: Grad Plus VS Private, let's discuss  (Read 12497 times)

ksully

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Re: Grad Plus VS Private, let's discuss
« Reply #20 on: May 14, 2008, 09:38:29 AM »
A provate loan may work out better than a Grad Plus, but shop around your Grad Plus lender too. You don't necessarily have to use the one your school pimps. Some fed lenders offer benefits beyond the standard, i.e some will reimburse your orginiation fee and give you a lower reduced rate. Look into borrowing from your home state (if different from school state and others). Vermont (VSAC) supposedly has a good program that you may qualify for (a class mate of mine was ablt ot use VSAC even though she was not from VT and did not go to school in VT.

vjm

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Re: Grad Plus VS Private, let's discuss
« Reply #21 on: May 14, 2008, 09:50:04 AM »
If you are planning on using the federal LRAP, it does not apply to private loans. Just something to consider.

The fed gov't is rolling out their own LRAP type that will be available after you all graduate.  They talked to us about it at my exit counseling session.

Yup, that's the one. CCRAA. It does not cover private loans at all, so if you are planning on using it you need to stay with Stafford and GradPlus. More info available here:

http://www.law.georgetown.edu/news/releases//documents/Forgiveness.pdf

and here:

http://www.equaljusticeworks.org/

SCK2008

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Re: Grad Plus VS Private, let's discuss
« Reply #22 on: May 14, 2008, 12:38:24 PM »
Quote
A lot of GradPlus lenders have "origination fees" of 1.5-3%

The 3% origination fee is federally mandated

US Bank claims a 0% origination fee...the banks pays the fee I think is the explanation but I could be wrong...

but I don't think so.  Ksully seems to agree...if I'm interpreting things correctly.
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jack24

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Re: Grad Plus VS Private, let's discuss
« Reply #23 on: May 14, 2008, 01:17:15 PM »
Quote
A lot of GradPlus lenders have "origination fees" of 1.5-3%

The 3% origination fee is federally mandated

US Bank claims a 0% origination fee...the banks pays the fee I think is the explanation but I could be wrong...

but I don't think so.  Ksully seems to agree...if I'm interpreting things correctly.


US bank pays the federal default fee which can be 1%, but the federal guarantee fee is 3%.
The federal government allows banks to charge the additional 1% for their own interests, but the 3% goes straight to the feds.  Some GRAD plus lenders will do a 1% principal reduction after you make a certain number of on-tim payments, but I haven't found any that go anywhere close to reimbursing 3%


SCK2008

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Re: Grad Plus VS Private, let's discuss
« Reply #24 on: May 14, 2008, 01:27:49 PM »
PMing you Jack.
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wiimote

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Re: Grad Plus VS Private, let's discuss
« Reply #25 on: May 14, 2008, 01:31:28 PM »
If you're going to a tier 2 law school, the credited response is neither. You can't afford to pay back $150,000 of debt with a $50,000 a year job.

SCK2008

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Re: Grad Plus VS Private, let's discuss
« Reply #26 on: May 14, 2008, 01:34:17 PM »
If you're going to a tier 2 law school, the credited response is neither. You can't afford to pay back $150,000 of debt with a $50,000 a year job.

The troll strikes again.

The troll is wrong again.

How much will the T2 student make 5 years down the road?  10 years?

When will you lose your virginity?  5 years?  10 years?
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wiimote

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Re: Grad Plus VS Private, let's discuss
« Reply #27 on: May 14, 2008, 01:42:15 PM »
How much will the T2 student make 5 years down the road?  10 years?


I guess if you look far enough into the future, it becomes easier to lie to yourself.

Enjoy working as a bartender to pay them off. http://www.chicagotribune.com/features/magazine/chi-080406lawyerwoes-story,0,5547944.story

jack24

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Re: Grad Plus VS Private, let's discuss
« Reply #28 on: May 14, 2008, 01:44:58 PM »
If you're going to a tier 2 law school, the credited response is neither. You can't afford to pay back $150,000 of debt with a $50,000 a year job.

I appreciate your concern for my financial situation, but please keep your input to yourself.
You speak in generalities and you have no idea if I might be the exception.. For example, what if I already have a job lined up?  Or what if I can work to pay some of the debt during the summers?  You don't know my situation so shut up, or just give me advice about the pros and cons of grad plus vs private financing.
Oh and besides, your math is off.  45k + 60k  is 105,000 not 150,000.



DietChek

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Re: Grad Plus VS Private, let's discuss
« Reply #29 on: May 14, 2008, 01:47:06 PM »
Wachovia credits your accrued interest in the amount of the origination fee 180 days after disbursement.