Law School Discussion



Re: Grad PLUS
« Reply #30 on: April 16, 2006, 03:20:53 PM »
Your income to debt ratio affects your credit score, so what they look at is how much debt you have in relation to how much cash you have coming in.  I've also heard it's best to keep credit cards at about 30% of your max.   

Re: Grad PLUS
« Reply #31 on: April 16, 2006, 03:26:44 PM »
Phooey is correct. It's actually pretty bad to have your credit cards maxxed out, i' pay them off if you can.


Re: Grad PLUS
« Reply #32 on: April 16, 2006, 04:27:26 PM »
Very helpful.  Are there any other solid lenders besides Wachovia and Sallie Mae.  It looks like a guaranteed rate of 7% after incentives is a pretty attractive deal to me (only .2% above the 6.8% Staffords).

Credit Card question:  I maxed out my credit card, but I haven't missed a payment or anything.  Does this improve or hurt my credit.  I'm pretty clueless about this stuff.

The way they compute credit scores is complicated but having a credit card maxed out wii hurt a little but as long as you make payments on time, which is the most imortant factor, you should be ok.  Also, with the graplus loan all they do is a very very very basic credit check.

As someone stated your school should send you a list of preferred lenders. but here is a short list of some
edamerica-great customer service
accessgroup-These two are not for profit organizations

Bank of america
good personal finance website;


Re: Grad PLUS
« Reply #33 on: April 16, 2006, 05:35:56 PM »
Some current Emory students have recommended T.H.E loans (Total Higher Education). They are a non-profit I believe.

One of their differentiators is that they don't capitalize your interest until you actually enter repayment status. This could save you some money because many other lenders capitalize the interest on your loan monthly, quarterly, or yearly throughout the time you're in school, so the interest builds upon itself.

For the credit card issue, I don't think maxing out your CC will have any effect on your ability to get a Stafford or Grad PLUS loan....your approval for those is based on Federal standards (which are pretty minimal...I mean, they approve 18 year olds who don't have any credit history) and not credit score. So as long as you aren't missing payments or in default, I think you should be fine. Perhaps you can pay off the card when your student loans are disbursed this summer....student loan interest is tax deductible, consumer debt interest is not. Best of luck!

Re: Grad PLUS
« Reply #34 on: April 17, 2006, 06:37:19 AM »
My understanding is that the 8.5 is reduced to 7.5 if you make all of your payments on time.  The cheapest private loans come out to about 7.5 as well, with no origination fee... so they look cheaper... BUT loans have been rising significantly lately and are expected to continue to do so... thus the cheapest private loans are likely to exceed the fixed interest rate of 7.5/8.5 for the grad plus loan.  I did a lot of number crunching and I think the grad plus loan is the best bet... even after adding for the 3% origination fee.

Re: Grad PLUS
« Reply #35 on: April 17, 2006, 08:03:23 AM »
I know this was about the PLUS loan but...
Someone here mentioned that the stafford loan is fixed rate? I just did my applications and all that for BU, and all the information on the site they sent me to said that it was a variable rate, but would not go above 8.25%. Was this just wrong?

Re: Grad PLUS
« Reply #36 on: April 17, 2006, 09:02:27 AM »
The Stafford loans used to be variable, but starting July 1st, they will be set at a fixed rate.

Re: Grad PLUS
« Reply #37 on: April 17, 2006, 09:08:24 AM »
oh  :( thanks. shouldn't they have put that somewhere in ther before the signature part where i promise to pay back the loan? lol. maybe it was in there somewhere but they put the info. about the whole variable thing like three different times.

Re: Grad PLUS
« Reply #38 on: April 17, 2006, 10:18:55 AM »
someone up there listed citibank. please dont use citibank. they do awful things with your money (meaning your interest payments). evilevilevil. (i know someone will ask me to qualify this, but lets just say they are behind a lot of large development projects that do more harm than good)

I second this....they are bad...very, very bad.  They like to fund EXTREMELY environmentally damaging projects...can anyone say Three Rivers Dam, China?


Re: Grad PLUS
« Reply #39 on: April 17, 2006, 10:35:31 AM »
the more enviornmentally damaging the better. jk