Grad PLUS

[George Jefferson²]

If voted into the White House in '08, I'll drastically reduce interest on federal student loans. My plan would also increase the yearly maximum to $25,000.00 (12.5K subsidized, 12.5K unsubsidized). Change is coming! Join me in creating a more prosperous America!

[gsl]

With Sallie Mae it looks like we pay a 3% federal origination fee and a guarantee fee of up to 1% of the loan amount. Some schools might let you waive the guarantee fee...doesn't look like UVA is one of those schools. Wachovia will give a rebate at repayment equal to the 3% federal origination fee that was paid at disbursement. Sallie Mae also will give a 1% and a 1.5% rebate after 12 and 36 months of repayment.

I haven't sat down to crunch the numbers as to whether it would be better to eat the origination fee & guarntee fee in order to get the 7.0% interest rate or save on the fees but pay 7.9% interest.

When I first read about the origination fees, I thought, that sucks, how lame, and got pissed off. Then I relized we're talking like $300 on a $10k loan, so I decided it wasn't a big deal. I'd rather pay the couple hundred bucks and lock in a lower interest rate that I can keep for 10+ years...or longer...depending on how long it takes me to pay off the loans.

[George Jefferson²]

If voted into the White House in '08, I'll drastically reduce interest on federal student loans. My plan would also increase the yearly maximum to $25,000.00 (12.5K subsidized, 12.5K unsubsidized). Change is coming! Join me in creating a more prosperous America!

Yes! George Jefferson for President!

RLY!

[BigRig]

Sallie Mae Grad Plus vs. Wachovia Grad Plus? Is there a consensus on which is better?  Does interest begin accruing right away with all such programs? We know that the fed funds rate is set to pause at 5% according to latest remarks by Fed Chairman Bernanke. If growth still does not measurably slow, the fed funds rate might tick up to 5.25% to 5.5% but shouldn't go much higher. If interest rates retreat to the neutral rate (4.5%) and hover there through the medium term, are private loans going to be better for those with outstanding credit?  It seems as though after the benefits offered by Grad Plus providers (paying on time, etc.) that the diff. between Grad Plus and private is not much. Also, I don't exactly see how the Sallie Mae Grad Plus loan retreats to 7.00%.  Can anyone explain a little more?

Thanks,

Brent

[dizn]

tagarama

[angmill08]

Some current Emory students have recommended T.H.E loans (Total Higher Education). They are a non-profit I believe.

http://www.northstar.org/

GWU also recommended this lender. On the northstar website, they say the Stafford interest rate will be the "T bill" (currently, 3%) + 1.7% while you're in school and + 2.3% after. So this would be lower than the fixed rate of 6.8% that the Access Group offers for disbursements post 7/1/06.

Or... am I missing something and all Stafford loans will have a fixed interest rate after 7/1/06?

[greengrl]

Some current Emory students have recommended T.H.E loans (Total Higher Education). They are a non-profit I believe.

http://www.northstar.org/

GWU also recommended this lender. On the northstar website, they say the Stafford interest rate will be the "T bill" (currently, 3%) + 1.7% while you're in school and + 2.3% after. So this would be lower than the fixed rate of 6.8% that the Access Group offers for disbursements post 7/1/06.

Or... am I missing something and all Stafford loans will have a fixed interest rate after 7/1/06?

this looks like a promising lender, however, do you have to be below a certain income level to qualify for these loans? I understand the difference between subsidized and unsubsidized but am looking for a lender to supplement the additional funds required outside of the amount i can get from the school; does that make sense?

[Josef.K]

Just putting this thread in my unreads...

[angmill08]

this looks like a promising lender, however, do you have to be below a certain income level to qualify for these loans? I understand the difference between subsidized and unsubsidized but am looking for a lender to supplement the additional funds required outside of the amount i can get from the school; does that make sense?

I'm not sure about additional loans, because I'm not applying for those. For the regular Stafford, your FAFSA and financial aid info will determine what subsidized amount you qualify for. The rest will be unsubsidized.

It seems to be the consensus here that for both the subsidized and unsubsidized, up to the Stafford limit ($18,500/yr) the rate is set by the gov't and the lender you choose doesn't matter. At least, that's what I've gotten from the posts so far...

[greengrl]

this looks like a promising lender, however, do you have to be below a certain income level to qualify for these loans? I understand the difference between subsidized and unsubsidized but am looking for a lender to supplement the additional funds required outside of the amount i can get from the school; does that make sense?

I'm not sure about additional loans, because I'm not applying for those. For the regular Stafford, your FAFSA and financial aid info will determine what subsidized amount you qualify for. The rest will be unsubsidized.

It seems to be the consensus here that for both the subsidized and unsubsidized, up to the Stafford limit ($18,500/yr) the rate is set by the gov't and the lender you choose doesn't matter. At least, that's what I've gotten from the posts so far...

Yeah the 18.5 limit is a federal limit; however that won't cover all expenses. I, for one, have to supplement that with outside loans. grrrr