Law School Discussion

Federal Loan Question

shae

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Federal Loan Question
« on: December 22, 2005, 01:57:09 AM »
Are you pretty much guranteed federal loans to cover your schools cost of attendance or are they capped at ~18000

If they are capped- I assume the rest come from private lenders.  what interest rates and repayment terms are typical?

Just curious, in case I have to take out 90-100k in loans.  :-\

Re: Federal Loan Question
« Reply #1 on: December 22, 2005, 11:55:03 AM »
I am assuming they are fairly guaranteed. I got the whole $18,500 this go around, even though my financial situation is substantially differentn from my last go around where I also got the full $18,500.

I did have to get private loans this time, and they are based on your credit entirely and are prime + XXX for your interest rate, depending on what your credit score is.

FWIW, Prime is currently 7.25% and expected to go up another quarter percent first part of 2006 before it starts going back down again (fyi, that the really damn highest its been in a while)

shae

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Re: Federal Loan Question
« Reply #2 on: December 22, 2005, 12:21:52 PM »

FWIW, Prime is currently 7.25% and expected to go up another quarter percent first part of 2006 before it starts going back down again (fyi, that the really damn highest its been in a while)


lucky me.  i have enough money to fund about a year and a half of living expenses.  if interest rates are really high and are expected to go down after next year i may use that money and avoid taking out high interest loans.

Re: Federal Loan Question
« Reply #3 on: December 22, 2005, 05:36:07 PM »
The sliver lining (for those us of with crappy credit scores) is that even with my prime + 5.5%, the rate is adjustable and floats with prime, so as prime goes down, so do my payments, well, my accumulating insterest that I am not paying while in school.

Plus, its a hell of a lot better than the rate on my currently close to maxed out credit card (or two) that will get paid off with this first installment of private loans (less about $3000 I have to pay the school)

shae

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Re: Federal Loan Question
« Reply #4 on: December 22, 2005, 05:40:39 PM »
i wish i could have locked in one of those historically low rates a few years ago.  o well- i'll deal with the payments later.

Re: Federal Loan Question
« Reply #5 on: December 27, 2005, 01:01:14 PM »
i wish i could have locked in one of those historically low rates a few years ago.  o well- i'll deal with the payments later.

Amen to that!!

Eh well, it's an "investment" in our future, right?