Should I do Access or T.H.E (Northstar) for my private loans?

[vivarin]

Does anyone here have any experiences with either lending company?

I have excellent credit, so both companies are giving me a good rate:  But, from what I understand, there are a few differences between them.

Interest
Access: LIBOR+1.7
THE: LIBOR+1.75

Interest rate abatement:
Access: subtract 0.5% after 48 ontime payment.  Also, subtract 0.25% for direct debit.
THE: Offers the THE bonus EXCEPT for people like me who qualify for the premier credit.  I don't think they offer anything else.

Ceiling interest rate:
Access: 25% (ouch!)  This isn't likely though...right?
THE: 18% - still pretty high, but as I already stated, how likely is this?

Origination and repayment fees:
Access: none
THE: none - I think

What do you guys think?

[Mr. Burnz]

Wow, thanks for pointing out that the repayment bonus doesnt apply to the Premier Rate loans.  I'm gonna switch my loans to Access tomorrow for this reason.  I'm starting to wonder if they just snuck that into their website on me or if its a new policy after I applied.

Anyhow, regarding Access Group, in addition to that 48-month repayment incentive, they offer a .25% interest rate reduction immediately upon repayment.

Neither company has any origination/disbursement fees and both seem to have very good service.  But with a .05% cheaper interest rate and the .25% incentive (vs. 0% from THE), it's a no-brainer.  Barring a VERY VERY catastrophic financial collapse of the US economy (think: 10x worse than 9/11), interest rates will not go beyond 18% anytime while we're in school.  With that said, I think I'm gonna use THE for my Stafford and Access for my private loan.

And again, thanks for the heads-up about that little footnote I missed.  Good luck!

[vivarin]

I don't know if it's a new policy, but they state on their website that Premier interest rates do not qualify for the bonus.  It's an asterisked footnote though, so they don't make it obvious.  Just keep your eyes peeled.

Regardless, I wonder if it's still worth doing THE...what if my credit score goes bad and I need to reapply for loans?  Then it would be nice to have that THE bonus as a cushion.  Yet...I doubt my score will go bad anytime soon.  I've been very responsible with my payments and I don't see why this would change in the future.  So, maybe Access it is.  Especially since their interest rate is already lower.  Also, that direct debit deduction will out out some - it's better than nothing.  As for the 48mo ontime payment deduction - that's nice and all, and frankly someone like me would probably be able to pull it off, but 4 years is an awfully long time to wait for a deduction!

I'm glad I helped you out, btw.

[Mr. Burnz]

I don't really understand what you mean by "...what if my credit score goes bad and I need to reapply for loans?  Then it would be nice to have that THE bonus as a cushion."  Can you elaborate?  We seem to be in the same boat here as far as credit and loans...

PS: See ya at GW!

[vivarin]

I don't really understand what you mean by "...what if my credit score goes bad and I need to reapply for loans?  Then it would be nice to have that THE bonus as a cushion."  Can you elaborate?  We seem to be in the same boat here as far as credit and loans...

PS: See ya at GW!

Sorry - I meant that when I apply for loans again next year, and if my credit score goes downhill for some reason, I wouldnt' be able to get the premier interest rate anymore.  But the THE bonus would make up the difference. 

I've decided that the above scenario is unlikely, and have gone ahead with Access.  Their lower interest rate trumps any incentives that THE can offer me, especially since I don't qualify for THE's incentives in the first place!

Are you going to GW too?  If so, I'll see you there soon!